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benefit from his tax concessions and to have a larger disposable
income the $2,000 and $4,000 increases should be added to the basic
or Abut
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allowance rather than to the additional allowance. The increase in the
4 additional allowance will be crawf back at a 10 per cent rate as the fed
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individual income increases. Hence, single people with an annual
6 income between $36,000 and $106,000 or a married couple with an
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annual income between $74,000 and $240,000 will receive benefits of
varying amounts from this form of tax concession. However, for the
up-and-coming enterprising individuals, the increase in the additional allowance does not yield a long-lasting advantage. I I suggest that the
Financial Secretary should dispense with the additional allowance
but and review the basic allowance to permit a minimum, decent standard
of living without tax liability and consistent with the level of our
economic development and affluence.
Stamp duty for property. It has also been proposed to reduce rates of duty for properties to facilitate the middle-income earners to purchase
their own homes. No doubt this measure would stimulate the property
market, but at the same time it would trigger speculative transactions
thus inflating the prices of flats. When this speculation occurs, the
advantage to be accrued from the reduced duties would be transferred
from the home purchasers to the property developers. I therefore urge
the Government to consider tax exemptions or partial tax concessions
on mortgage payments for home owner-occupiers. Whilst I appreciate that 25 this proposal would cost revenue losses for the Government, there are
economic as well as social merits for introducing this proposal.
the estimated size of the potential home-buyers of 100,000, the
construction and related industries would be boosted considerably.
Hence, corporate and income taxes and other forms of revenue arising
for the cothers from these stimulated industries and trades covered would be substantial.
Furthermore, home-ownership would certainly strengthen a sense of
belonging, which would in turn act as a hedge against the brain drain.
This group of home-buyers would consist largely of professionals and
spring technologists and constitute the main stre
stream of our economy.
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Given
District Fight Crimes Committees. [The Fight Crime Committee, District