“Freedom, Free Market, Small Government, Low Tax” have always been the fitrah (core values) of Conservatives (a.k.a. Classic Liberals). However, president-elect Barrack Hussien Obama that represents the Leftists crossed the border and hijacked “Tax cuts” away from the Conservatives during the recent US election this year. For this, Obama won loud applause from the middle class all over the USA.
Governor Sarah Palin was made the running mate by John McCain, primarily due to her status as the “babe” of Conservatives. This stunningly beautiful governor wears very formal attires (some say it’s outdated), loves to go moose-hunting, and opposes gay marriages strongly. Thanks to her, many of the Conservative crowd found a reason to vote for McCain.
However, behind the seductive glossy lips, not many realise that the “People’s Republic of Alaska” under Palin administration is the one and only welfare state that practises true Socialism piously in the USA.
In this tax-free state, everyone, regardless of gender, including senior citizens and the underaged, are entitled to a huge angpow (gift money) of “Petroleum Wealth Redistribution” in the name of “Permanent Fund Divident (PFD). For the year 2007, this gift was as lucrative as USD 1,654 per person (approx RM 6,000).
Since the North Slope oil well came into production in 1976, the state deposit the petroleum income in the newly set up “Permanent Fund“. A quarter of the amount must be invested, and 8% of the investment income would be withdrawn by the state annually. Of the amount, 3% is channelled back to the Permanent Fund to cushion against inflation, while the remaining 5% would be distributed to each and every of the Alaskan resident who have lived in the state for at least a year, and without any criminal conviction.
So long as the welfare is not supported by high taxation, member of the public gives its full consent. According to surveys, Alaska would stay in black as long as the crude oil price stands higher than USD 74 per barrel. Now that it’s dipping to below USD 50 per barrel, our beloved Inuits (formely a.k.a. Eskimos) might need to consider heeding DPM Datuk Seri Najib Razak’s advice and “ubah gaya hidup” (change lifestyle).
In contrast to flooding one with cash, a tax cut or even tax return can keep money in the hands of the public more effectively in a fairer manner. This view was also articulated freely when President Ma Ying-jeou decided to sprinkle Taiwanese with “shopping vouchers” of NTD 3,600 per person.
Counting down to the strike of financial turmoil, Democratic Action Party (DAP) Secretary General Lim Guan Eng, who is also Chief Minister of Penang, State Assemblyperson for Ayer Puteh cum MP for Bagan, has initiated a RM 50 billion stimulus package, with a “Bonus Minyak” (Petroleum Bonus) as its jewel in the crown. Under his proposal, each and every family with monthly income of less than RM 6,000 will be awarded a “Petroleum Bonus” of RM 6,000 every year. According to Lim, this solution alone would cost only RM 35 billion per annum, which constituents just merely one third of Petronas’ 2007 income of RM 107 billion.
Previously, DAP claimed in its own version of “Budget 2009″, that 40% of federal government expenditure is paid by petroleum income. And that is terrifying.
Unfortunately, these Santa Clause-wannabes wish to squeeze an extra RM 35 billion out of Petronas every year to pay for their “Bonus Minyak”. That accounts for one third of Petronas’ income when crude was skyrocketing high. To the rakyat, seems like DAP, which will rely heavily on petroleum even more than Umno does, is very likely to reinvent Malaysia into the next “People’s Republic”, and that is, to put it mildly, disastrously terrifying.