The Problem With Countries Where People Live Off The State And Dont Pay Taxes

This is an interesting video.

Link :  https://youtu.be/1xJQXicNjEM

My comments : A very interesting point to note is that all the oil kingdoms around the world (including a couple in South East Asia) have been dishing out their oil money. Sizeable numbers of people do not pay taxes.

The same applies to Malaysia (ignoring the GST which is a new phenomenon here).

Before the GST was enforced the gomen already withdrew many subsidies.  Removing subsidies immediately caused prices to shoot up. After that the gomen implemented the GST - which caused already high prices to shoot up even more. The removal of subsidies and the GST have compounded price increases easily by 15% or more. The people who are wage earners, those who wait for BR1M or have no permanent sources of income (the informal sector) are suffering the most. Effectively they have taken a huge paycut - their purchasing power has shrunk by 15% or more. Their salaries are not increasing.  

In one case, an established company has given a modest salary increment after almost TWO years. The company is run by Chinese.

The question is with the diminishing oil revenue (or conversely with the queues for free handouts getting even longer) can their people start paying the taxes that will be needed to keep the hospitals, schools, roads, railways and airports functioning to the quality and quantity that was made available before?

In order to be able to pay taxes you must be productive, efficient and competitive. Only then can you generate sufficient income that can be taxable to sustain modern living.  Otherwise it will be a pucuk paku and nasi kicap existence.

Complicating the matter in our country is the presence of a large group of people in the economy who are already able to do this but they live side by side with a larger group who are not able to do the same in as much quantity.

The double whammy is the difference in race, language and religion between these groups. 

The politicians are well aware of this divide. Hence the fall back on religion and useless populism to keep their vote banks happy.

The declaration of Monday as a public holiday is a good example. The one group that pays less taxes and makes up largely wage earning classes is thrilled at another free holiday.

The other group that has to reschedule production, deliveries, cancel business appointments, change travel plans etc laments at the gomens reckless and childish declaration of a public holiday, especially at the end of an already LONG FOUR DAY weekend ! The country already has too many Federal and State holidays. 

Extremely level headed thinking is required to map the future.  Just do what others have done already and very succesfully too.