PAP MP Tin Pei Ling, Joan Pereira and Lee Bee Wah opposed the new Budget law that cap S$80,000 on personal income tax reliefs. The three PAP MPs claimed that capping income tax reliefs will increase tax burden of rich mothers with MP Lee Bee Wah chorusing her protest:
“One such mother said it will increase her tax burden by 20 per cent. She has three children and was considering a fourth. But with this change, she no longer feels the same incentive and support from the Government to do so. She is already feeling stressed from juggling work, kids and parents, and reconsidering quitting the workforce to focus on her family.”
Just earlier today, the government-controlled media ran a report saying that a mother earning S$250,000 a year is discouraged to work just because she has to pay S$5,000 more in taxes. Contradictingly, instead of calling out high income mothers, the PAP MPs called the new law “penny wise pound foolish”.
PAP MP Lee Bee Wah also suggested that high income mothers, who earn more than S$80,000 a year, will leave their high income jobs just because they are paying a few hundred dollars more in taxes because of the new law:
“I know the cap is expected to net S$100 million a year in revenue, but I certainly hope it will not turn out ‘penny wise pound foolish’, by driving high-income mothers away from the workforce or reducing the number of children they will add to the future workforce.”
The 3 PAP MPs themselves each earn S$180,000 a year with their MP salary alone and these women MPs will be paying more income taxes if the law is not repealed. MP Lee Bee Wah is earning director’s fees from an engineering company that contracts government projects and is expected to pay more taxes when the law come through.