THIS WEEK’S TOPIC: Should Singapore enhance its wealth taxes (for instance, with a levy on property gains or inheritance) to narrow the wealth gap?
I am for a wealth tax to narrow the wealth gap. In my opinion, the levy should be on property gains rather than inheritance for two reasons. Firstly, taxing property gains addresses the problem at the root since the widening wealth gap across the world has been historically driven by property investments. Secondly, instituting an inheritance tax will just drive wealthy individuals and families to park their wealth and assets overseas which will run counter to the initiative of narrowing the wealth gap. Although it would be a first for Singapore, wealth tax is not new. Argentina recently did it (netting US$2.4 billion from the wealthy) and the US is mulling it too.
Overall, Singapore has done well in reducing the wealth gap. Its Gini coefficient fell to a low of 0.375 in 2020.
Mario Singh
Chief Executive Office
Fullerton Markets
