Thread: Paiboon: Asset and inheritance taxes could help close wealth gap

ECONOMY / FINANCE MINISTRY STRATEGY

Paiboon: Asset and inheritance taxes could help close wealth gap

WICHIT CHANTANUSORNSIRI
New taxes on assets and inheritances should be incorporated in the Finance Ministry's long-term development plans to help reduce the wealth gap, said Paiboon Wattanasiritham, a deputy prime minister and the social development and human security minister. Dr Paiboon said that while it was uncertain whether an asset tax would reduce the gap between rich and poor, it would help to ease social tensions.
An inheritance tax would have the same effect.
''A tax might not result in a significant increase in state revenue, but there would be a psychological impact. We could see greater distribution of wealth within society,'' he said at a conference yesterday.
Authorities have long considered imposing an inheritance and asset tax as a means of increasing state revenues while encouraging the growth of private philanthropy and charity.
But the proposals have never received the political support for passage into law, as both taxes have been strongly opposed by the wealthy.
Authorities however are concerned that inequities in income distribution will lead to growing social pressures. While poverty has fallen since the 1997 economic crisis, the gap between the rich and the poor has widened.
Dr Paiboon also recommended increasing personal tax deductions for charitable contributions and expanding the definition of organisations eligible for deductible contributions to help encourage greater philanthropy.
He said charity deductions, now capped at no more than 10% of income, should be doubled to 20% to encourage people to donate to social organisations.
Corporate tax incentives should also be increased, with the current deduction of 1% to 2% of taxable income more than doubled to 4% to 5%.
At the same time, Dr Paiboon recommended that the Social Welfare Fund, now regulated by the Labour Ministry, be transformed into an independent institution to help increase flexibility in asset management.
Chalongphob Sussangkarn, the finance minister, said it was important to understand the country's long-term objectives before setting policy.
''We need to consider these proposals carefully, and ask ourselves, what kind of society do we want to be,'' he said.
''Do we aim to be a society dependent on state benefits, offered in return for a high tax burden, such as countries in Scandinavia?''

so, we create an inheritance tax that we pay to a government that is...

..what's that "C" word...

...and thereby "reduce" the wealth gap.

Bollocks!

The simplest way to re-distribute wealth is to raise the minimum wages & ensure a fair wage for Thai labour. Decent benefits packages, medical & compulsory retirement contributions would help. A tax on the 'super-rich' would also help to close the gap.

Thailand is grossly obscene when it comes to the earnings ratios across a company - the upper crust vs the rest.

I think Thailand needs workers unions so we can have some decent strikes.

^