Friday is already here, and I seem to be behind with everything… And it has been a restless, windy week, with small storms brewing to the north of us. I have been planning to publish this feedback to my blog post last Sunday, in which I attempted to tackle economic issues. Not being at all well versed in these matters, I am grateful to my friend and economist Joseph Cox for the following comments on the tax reform issue. I reprint his online comments verbatim and with his permission…
Joseph wrote: ’
“Emma, I read your blog with interest. The objection to the PSWG [Private Sector Working Group] proposal is not about inertia or maintaining the status quo. Neither is the so-called “anti poor” label valid. That was a Gleaner construct which emanated from deliberately misreprepresenting a comment I made about the issue. The problem with Joe’s proposal is that they didnt think it through properly. For example its all well and good to apply GCT to basic foods but when you claim that all that is required is $2B to maintain or improve the standard of living of those you target in your proposal but which translates to $35.48 per week you are kidding yourself. Further the introduction of a minimum business tax of $100k or 0.5% of your gross turnover would only succeed in driving many micro and small businesses underground and penalise places like apt and townhouse complexes (most of which are limited liability companies). Indeed even if you accepted the proposal as is and Govt reaps $7.6B in additional revenue, that in and of itself will plunge the economy back into recession as you cant take that amount of money out of an eceonomy without there being negative consequences. Bottomline is simply this. Rather than facilitating growth Joe’s proposal is unnecessarily contractionary and actually is inimical to its stated objectives. However please dont get confused by the Gleaner’s duplicity and name calling in this process. Personally I have found their behaviour to be most unhelpful and extremely disappointing. Nonetheless there are genuine and respectful policy disagreements about the way forward in tax reform in Jamaica and no doubt these debates will continue for some time. After all the PSWG proposal contrary to the narrative in the print media is just one of 32 and not the only one.”
On another blog post I wrote about Katalyxt’s wonderful Writers Forum last week in Kingston, here’s a little postscript from Ms. Corine LaFont, one of the presenters on the business side of writing.
Ms. LaFont’s website is http://helpdeskja.com/ and she is the first and only certified Author Assistant in the Caribbean. You may contact her at corine@helpdeskja.com and by telephone at: (876) 849 7856. This is a service she offers (and of course it is not for free) not only to regional authors, but also “coaches, small business persons, educators,individuals and even large corporations can utilize my services.” So budding authors and others seeking to create wealth out of their creativity… resources are out there!
See you again soon.
Related articles
- Sunday Simmer (petchary.wordpress.com)
- The Joy (and the Business of) Writing (petchary.wordpress.com)
- Obama’s Tax Reform Proposal — Are Small and Medium Businesses on the Menu? (forbes.com)
I know what you mean about being behind with everything… the end of the month seems to be rushing toward us at breakneck speed.
It’s crazy, isn’t it? Half-way through the year already!
Taxes are tricky even in the best of times and with the clearest of explanations, aren’t they? I’m impressed you posted your feedback in the same week. I’m lucky if I remember to do it within a month
Extremely difficult topic, and I am no economist. I struggle to understand, let alone try to explain – which is why I felt I had to post my friend’s feedback, since he IS an economist! We had the budget last week too, so the word “tax” is on everyone’s lips right now! We are a highly over-taxed country!