Private Sector working group says Tax proposal unworkable

Once again I would like to throw out additional information for people to review and come to their own position.

A Private Sector Working Group has suggested that the proposal laid out by the JLP to increase the income tax threshold to $1.5m is unworkable and its unfair and equitable.

Now we all know we work off the British system and if one were to look at the British Tax System, all the things the PSWG say would not make it work are actually working in the UK.

One must therefore ask, why can it work in the UK but not in Jamaica.

Lets explore the income tax brackets in the UK

Band Rate Income after allowances 2015 to 2016
Starting rate for savings 10% (0% from 2015 to 2016) Up to £5,000
Basic rate 20% Up to £31,785
Higher rate 40% £31,786 to £150,000
Additional rate 45% Over £150,001

Looking at the above was is the income of the man/woman who falls in the 20% tax bracket, when he or she moved to GBP of 31,786

So one can say the British system is inequitable, but works.

There are no threshold level that would allow a system to be equitable, instead the question should be how many people would be impacted by this proposal. I would venture to say it no more that 1-1.5%.

We would therefore like to throw out a proposal that can benefit 98.5-99% because it is unfair to 1 -1.5%, does that really sounds logical, but I guess this is Jamaica so “no problem”

The biggest inequity in Jamaica is Snr Managers and CEO who earns on average of 15-20 X the average worker and get huge bonus, tax free allowance and perks, why don’t we go and try and fix that instead .

Why are the people who earn $5m and above so suddenly appears so  caring for those earning between $1.55 and $1.65m, who are the people said to be impacted.

The fact is folks No one earning $1.5m to $5m will be taking home less day the day after this is implemented and that message must be sent.

All the talking heads rallying against this are now low level income earners, but are those earning well over $5m.

You must therefore question why they have suddenly become champion of the poor?

What is there real motive, is it altruist or selfish, you decide

 

 

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