Shocking, Absolutely Shocking: Who Knew Free Lunches Came with a Bill?

Well, well, well, isn't this a surprise? The recent brouhaha over the broadening of the Sales and Services Tax (SST) and the simultaneous delightful announcement of higher electricity tariffs has sent ripples of indignation across our fair nation. People are in an uproar! Businesses are, apparently, aghast! One can almost hear the collective gasp of disbelief echoing from every kopitiam to every corporate boardroom.

But seriously, are we truly surprised? This grand day, when the chickens (and the bills) finally come home to roost, has been on the horizon for longer than most can remember. For years, a significant portion of our beloved Malaysian citizenry has seemingly operated under the charming illusion that the free services, education, and even employment opportunities they enjoyed were conjured forth from a mythical, bottomless government treasury. A magical realm where funds simply appeared, ready to dispense privileges without consequence.

Alas, it turns out those coffers are, in fact, remarkably finite. Who knew? And, even more astonishingly, they require regular topping up. A quick glance at Malaysia's persistent fiscal deficits after the the heady days before the Asian Financial Crisis should have been a rather glaring clue. Many of those "privileges" we've grown so accustomed to were, shall we say, generously supported by borrowed funds. And now, we find ourselves sitting pretty on a public debt of RM1.5 trillion and counting. The million-dollar (or rather, trillion-ringgit) question, of course, is: who exactly is going to foot this rather hefty bill?

Let's dispel another quaint notion: most governments, despite popular belief, do not possess the ability to print money out of thin air to finance their expenditures. Instead, they rely on the rather old-fashioned practice of taxing individuals and businesses. In return, they promise the efficient provision of public services – you know, trivial things like healthcare, education, and keeping us safe. When taxes and the regular generous dividends from our national champions like Petronas, Khazanah and BNM aren't quite enough to cover the tab, the government does what any financially constrained entity must: it borrows.

But here's the rub: too much borrowing, and too much debt, eventually become an unbearable burden. Servicing that debt becomes an ever-growing drain on the national purse, and borrowing fresh funds becomes increasingly expensive. Before you know it, those ever-vigilant rating agencies start peering over their spectacles, contemplating a downgrade. And ultimately, when all other avenues are exhausted, the government is left with precisely one option: raise taxes.

This, as any primary school economist could tell you, invariably increases the cost of living. For our hardworking wage earners, it's a double whammy: not only are their paychecks subject to higher taxes, but the cost of almost everything they consume also goes up, because businesses, bless their capitalist hearts, will undoubtedly pass on their increased costs to the consumer. Standards of living, quite predictably, take a dip. Of course, this is merely a gentle ripple compared to the tidal wave of economic crisis that could engulf us if this rising public debt problem were left unchecked – a scenario not entirely unfamiliar to developing nations, I might add.

But let us not descend entirely into gloom and despair! To brighten your day and perhaps offer a touch of clarity, allow me to present a few shining examples of precisely why you are now being asked to contribute a little more to the national coffers.

• The PTPTN Borrower's Lament: When that promising student, armed with a public loan from PTPTN, decides that repayment is merely an optional suggestion rather than a solemn obligation, who do you think picks up the tab? It's you, dear taxpayer, funding someone else's education (and perhaps their subsequent luxury lifestyle).
• The Art of the Political Pillage: When a politician or civil servant, in a moment of utter selflessness, decides to reallocate public funds directly into their private accounts, don't fret! Someone else will surely pay for it. And by "someone else," I mean everyone else.
• The Crony Project Premium: Ever wonder why some public projects cost a small fortune, often appearing to defy the laws of economics? When a public project is awarded to a "connected" enterprise at a significantly inflated price tag, the burden of that generosity, naturally, falls squarely on all other taxpayers. Think of it as a hidden surcharge for "friendship."
• The Bailout Bonanza (or, "How to Turn Public Funds into Private Losses"): When a public or government-affiliated private enterprise, through a magnificent combination of questionable business decisions, spectacular mismanagement, and perhaps a touch of good old-fashioned corruption, manages to lose colossal sums of money, every single tax payer and ordinary citizen will, inevitably, bear the cost. One way or another. Think of the legendary tales of Malaysia Airlines, Proton, Perwaja Steel, Lembaga Tabung Haji, FELDA, 1MDB, and a whole host of others who have, shall we say, benefited from the public's unwavering generosity. Sometimes, the rescue operation isn't funded directly from tax revenue, but rather from your hard-earned retirement savings in EPF – not precisely the kind of stellar investment return one envisions for their golden years, is it?
• The Zakat Economy Conundrum: While the noble act of Zakat payment is a commendable religious obligation, when these payments are subtracted directly from tax liabilities, it means less funds are available to meet the government's broader spending needs, including vital social welfare programs and economic development projects. It's a zero-sum game, folks.
• The Bloated Bureaucracy Blues: When our esteemed civil service swells far beyond its optimal size, and productivity seems to be a word more often heard in theory than seen in practice, the cost is borne by taxpayers. Their reward? Often, a rather substandard public service experience. A true bargain, wouldn't you agree?
• The Wealthy's Tax Holiday: And finally, for those truly inspiring members of our society who, despite their multiple luxury cars gracing the garages of their sprawling mansions, somehow manage to pay little to no taxes, or certainly not their fair share, rest assured: the burden of funding the nation is simply transferred to the ordinary wage-earning taxpayers. It's like a financial trickle-down, but in reverse.

So, to those Malaysians who genuinely believed that the privileges they enjoy came without a price tag, all I can say is this: you are, my friends, in for a truly delightful surprise. The last laugh, it seems, may very well be on you. I've said these before, and it bears repeating: nothing, absolutely nothing, in fiscal policy is "free." There is merely a subtle distinction between who benefits and who ultimately ends up bearing the cost. And for once, it seems, that distinction is becoming blindingly clear.