Wealth tax: not a magic bullet for wealth inequality

THE imposition of some form of wealth tax is a hotly anticipated subject in the upcoming Budget, next to the expectation of a GST hike.

In the short term, a wealth tax would help to expand the government's revenue. In the longer term, it may help to address Singapore's widening wealth disparity.

Government officials have emphasised the need to build a more inclusive society. Certainly Singapore's social expenditure for items like health and education has been rising. With an ageing population, healthcare expenditure is expected to triple to nearly S$60 billion a year by 2030.