GOVERNMENT’S APPROACH TO TAXATION DESCRIBED AS MADNESS

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Generation 2000 (G2K) today expressed its disappointment in the tax package which was unveiled by the Government and the approach that was taken in formulating same.

It feels like we have returned to the days of our colonial past where there is no need for consultation or effective representation in regards to taxation. The Minister of Finance, after the debacle in May 2012 with the introduction of taxes in the tourism sector, had promised to undertake consultations before the imposition of any new taxes” said Floyd Green, president of the organisation.

The organization notes that despite the imposition of a 23 billion dollar tax package in May 2012, the Government revenues still lag behind by 14 billion dollars, and tax revenue collection is significantly below target. The organisation is also concerned that young professionals will become disenfranchised as their dreams of homeownership will highly unattainable given the increase in stamp duty and transfer tax.

Mr. Green also stated that, “One would have expected the Minister to use the time in Parliament to outline a clear collection strategy for taxes, including elimination of the burdensome bureaucracy. Instead, the Minister has taken the proverbial Big Bang approach instead of comprehensive tax reform and clearly now is a living testimony of Einstein’s definition of madness

G2K notes the Government’s continuous disregard for the calls to cut the size of the cabinet; its refusal to establish a transparent system of hiring consultants and its continued insincere approach to the sharing of information, is quickly removing their moral authority.

G2K is the the young professional affiliate of the Jamaica Labour Party (JLP)

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One response to “GOVERNMENT’S APPROACH TO TAXATION DESCRIBED AS MADNESS

  1. Noel Richards

    Delano, I just listened to your conversation with Ralston Hyman and I hear him up to his usual antics, spitting out names of people he doesn’t know (of course Keynes is long deceased) and theories he collected from books. It all sounds nice, but in the reality of the world we live in, it is utter rubbish that will keep Jamaica stagnant, or worse, make it sink even deeper. Hyman is coming to you from the point of view of an externally indoctrinated, book reading “analyst”. He sees the economy through the warped lens of theory presented by the very people who pull the strings that exploit economies like Jamaica’s. The information you need comes from the Bankers and Industrialists who control the world’s financial system. They are not who you think they are and the system is arranged far more intricately than you realize. Macroeconomic Policy IS the means they use to exploit economies. When an economy like Jamaica’s insists on borrowing externally and internally (much of the money invested by Jamaicans is actually sourced externally) it unwittingly ensnares itself in perpetuity.

    Hyman likes to make hyperbolic statements in order to make himself look good to those who don’t have even a basic understanding of the system, when he himself is not privy to what and who actually drives the system. He may want to refer to Keynes as the father of the IMF, one of the Bretton Woods institutions, but that is misleading since his intent is to make you believe that the system was built to push Keynesian style economics as standard operating procedure for Governments. That is not so. You must have noticed that countries that practice Keynesianism have now made it an entrenched policy, and have very high levels of debt to GDP. What is now happening is not clear to those who adhere to this style of economics, they cannot see that the construct of the world financial system, the bulwark of this paradigm has plateaued an will have to retrench at some point, which makes it an imperative for Jamaica to get its house in order very soon. Hyman champions the train of thought that Keynesian style spending brought the US out of the Great Depression, when in fact it was WWII that did so. All anyone has to do is look at the stagnation prior to WWII and the reopening of the many mothballed steel mills at the US entry into the conflict, and you will get a clearer picture, New Deal spending was necessary, but other FDR acts I will not mention here, worked against the US. Spending by the US Government on moving from guns to butter after the war was a necessary adjustment that should not be used as the reasoning for using Keynesian style policies as the standard method for running an economy. The GI Bill and other spending was necessary for the repatriation of the millions of Americans who fought overseas.

    The PSM tax package is destructive. While it is based on the unavoidable demands of the IMF, the Admin is at sea on what to do to make Jamaica earn. What is absolutely necessary however is a total reconstruct of the Jamaican economy, which means that people are going to get hurt. Many are using the word “Production” as if just saying it makes it so, it’s nowhere near that easy, as you should know. Because Jamaica is at a crossroads that it cannot now make a mistake, I will give information to show how Jamaica can build its economy for the future and how it can avoid the pitfalls of the world financial system, eliminating most of the existing debt and avoid any further increases in debt, all depending on how well the information is used.
    Don’t ask how I know what I know. I will just give the information and some irrefutable proof of how what runs the system and how they responded to the 2007 crisis. Note it has nothing to do with China. You will understand when you read what I have to say. (Soon)

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