A Personal Finance Blog for Malaysian: Why the Rich Don't Feel Rich?

Friday, October 15, 2010

Why the Rich Don't Feel Rich?

Read somewhere earlier that a guy name Todd Henderson who earns USD250,000 a year in US complaining about the tax.

Today, I read this (click here) writing about "Why the Rich Don't Feel Rich", responding this Todd Henderson.

I remember last year my ex-colleague told me that one of the great Malaysia Minister said that monthly income of RM10,000 is considered middle income and therefore he is considered "No Income" level. Sound alike. Wonder how people-earns-less-than-RM10,000-a-month think?

By the way, expecting good news from Najib this evening about reduction in income tax. Willful wish. The government will "dig" from someone if they cut our income tax. Last year, when the tax rate dropped from 27% to 26% for chargeable income above RM100,000 - it only benefits the high-income earners OR the super rich. Just imagine, a surgeon with RM2 million taxable income will save RM2 m x 1% = RM20,000 while average ta-gong-zai (salaried-man) save RM???

Further reduction of the top tax rate from 26% to 25% will only benefits high-income or rich people, doesn't help ta-gong-zai like most of us. On the other side of the coin, it may encourage talents to come back to Malaysia, someone may argue that, do you buy this idea?

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