I refer to the Malaysiakini report 2010 Budget fails to excite .

The government is losing revenue from the reduction in income tax rate for those in the top-most tax bracket. Those in the highest bracket can afford to pay the difference, say RM5,000 or 1% of RM500,000.

Does the government, howver, know what RM5,000 means to the average mediocre wage- earner?

It is RM400+ per month, enough to pay a month’s instalment on a cheap car, one month’s rent or instalment for a cheap flat.

It is RM13.70 per day, enough for lunch and dinner for a family of two adults and four children; that is if they have white rice (the cheapest grade), use cheap cooking oil, two types of cheap vegetables from the ‘pasar malam’ at RM1 each and cheap fish costing maybe 30 to 50 sen each.

For the top tax bracket folks, RM400 is barely enough for just one dinner, and even their drink or one snack is more than RM13.70.

How can the gap between the poor and rich be narrowed? How can all the rakyat move towards a ‘higher-income’ economy?

Why not continue to tax those who can pay at 27%, but reduce the rate for those in the lower tax brackets instead?