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If the HKSAR increased income tax to 50%, capital gains tax on all investment income and added a 12% GST would you still live here ?

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  1. #11
    Quote Originally Posted by Oldtimer:
    HK residents cannot leave. They do not have right of abode in a different country.
    So your question is only applicable to the expats?
    A new Industry will be created: Tax avoidance: Accountants and lawyers will flourish.
    Even under present tax laws, you can arrange your affairs, in such a way that you either avoid the tax or pay even below 15%.
    Sure they can leave just like people who are living in HK as expats. It's not like HK is the only place in the world that grants employment/spousal/investment visas for those that qualify. Of course most hongkongers would not be able to leave due to inability to speak English/lack of professional skills/lack of financial means to move but that's beside the point.

  2. #12

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    Any of the first two would be deal breakers on their own... A 12% GST I could live with


  3. #13

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    why such drastic moves, come join me in macau.

    bookblogger likes this.

  4. #14

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    I'd be straight back to the UK / France without a moment's hesitation.


  5. #15

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    Only the GST would be painful for a Yank--the only difference with the increased income and cap gains taxes would be which government gets the check... Of course, the overall effect might be to decimate HK as a regional financial centre, which would be "bad" for most people here in the long run.


  6. #16

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    50% income tax would be very painful to the poorer yanks. No taxes for those who earn "normal" salaries...


  7. #17

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    Yes, you're right. I've paid relatively higher UK taxes for so long I'd forgotten how much lower US tax rates are...


  8. #18

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    switzerland or norway for me


  9. #19

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    Quote Originally Posted by muzzdang:
    It probably is not as simple as that. One of the key driving factors of the HK economy is the low taxes and simple tax system. If GST and CGT was introduced, the entire economy from the retail business (aka mainlanders flocking the branded shops, departmental shops, Sasa etc) will probably vanish, big financial companies will not invest through Hong Kong and it will cease to be a financial centre in Asia.

    The fact is we are indirectly paying higher income taxes through ridiculously high property prices, so an increase of personal income taxes would be double whammy.

    The questions may be, what would HK be left with?
    Property prices are not rediculously high when you take into account how low taxes are here.
    East_coast likes this.

  10. #20

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    Adopting a GST/VAT would probably seriously alter the streetscape of HK making it a less vibrant city, entrepreneurial city. It would quickly become just another city where mom & pop shops can't compete with the big boys.

    Income tax at 50% would eventually mean really cheap housing but given HK's finite land supplies there would be some stickyness in the prices making HK really just too expensive in the short term so would have to move somewhere else.

    Maybe North America, ANZ, Northern Europe would be nice for a change


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