Re:America vs. Singapore: You Can't Save Your Way Out of Eco...
by Muromec on Friday February 20, 2026 @11:36AM
(#47090256)
That does not count the missing opportunity cost, which is the actual tax from the savings
Re:America vs. Singapore: You Can't Save Your Way Out of Eco...
by NoLinkToMe on Wednesday February 25, 2026 @11:15AM
(#47153510)
No because in other similar countries like the example I gave of mine, that money is taxed and goes to another person. There is no opportunity cost.
In Singapore it's 'taxed' and earmarked to you, and then generates a very modest ROI. Yes there is an opportunity cost versus a place like Dubai that has 0% tax. But not compared to a similar welfare state that puts a 40% tax and you lose that money forever.
But these funds aren't pooled like taxes. Typically the top 25% pay something like 80% of the income taxes. And the recipient of that tax revenue is typically the bottom 50% who get means-tested welfare benefits. In the Singaporean model it seems that the CPF funds of 37% are not pooled but allocated to personal accounts.
In other words it's a redistribution in-time (from early to late) and in-type (general income to housing/healthcare/retirement expenses), but to the same person.
Whereas a tax is typically a redistribution in the same time period, but to different persons, and can be earmarked to whatever.
I'd certainly prefer a 37% tax earmarked to me only (with modest ROI) + 10% income taxes + 0% cap gains, than the 40% tax I pay (west-europe) on my income which is wholly redistributed to others + 36% cap gains if I invest the remainder.