Sunday, December 24, 2006

NTUC propose CPF increase of 1.5%

Looks like our CPF is slated to recover, not by a lot though.

A mere 1.5% despite the "solid" economic recovery but it is not confirmed yet.

NTUC has repeated its call for the CPF to be restored in recent weeks but MOM is still reconsidering the case. Come on, it is not going to crash the economy and many employers have also stated that a 1% increase will have minimal impact on their expenses.

The government can cut the employer's CPF contributions during the economic downturn in such a swift and decisive manner, but yet so reluctant to increase it during the good times. Only all-round fare increases so far, and the best of all is the announcement of a GST increase of 2% for 2007.

It will be good for our government to heed the call of the NTUC top-brass, otherwise people are not going to swallow the bitter medicine of salary and CPF cuts so willingly come the next economic recession.

The social contract between the rich and poor is already straining at the seams. Current policies are still in favour of the rich, otherwise the GST increase will be scraped already. While we cannot "chase away" the rich people with uncompetitive personal and corporate taxes, i
t is time to do more for the poor and middle-class, instead of just talking.

Let's start with the CPF first...

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