10 Tax Questions

1. How was the amount of  “additional revenue” to cover the fiscal deficit calculated?
   
   
2. If the government’s initial proposal was $22B and the revised package only amounts to $21.812B, then where is the difference to come from?
   
3. This sum: $22.812B is “additional revenue”, what is the grand total so far?
   
   
4. Was this sum a pre-condition stipulated by the INF, to be satisfied before any agreement is signed with the Government of Jamaica?
   
   
5. What are the consequences if the proposed tax package fails to meet the various collection targets being projected?
   
   
6. Over what period of time must this additional sum be realized?
   
   
7. Has the fact that the Government failed in its efforts to raise funding on the local market(necessitating the BOJ providing temporary support) influenced the nature and timing of the new tax measures?
   
   
8. Given the prolonged severe financial burden of Air Jamaica and the immense difficulty in having it divested, does it make any economic sense whatsoever in continuing its operation for even one more day?
   
   
9. What factors justified the government’s decision to impose a 2-year wage freeze on its workers, but no corresponding freeze on government imposed charges:levies, duties, imposts, taxes, and user fees?
   
   
10. Are Jamaicans to expect any more tax packages before the end of the financial year-April 2010?
    
    

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The Dread 2010

From all indications the new year will be dread. Like the numerical symbolism, we will probably have to cut in half our standard of living—starting with 20 and ending with 10.

The “bad” news is that the government has decided to levy 17.5% GCT on all criticisms/new ideas/leadership initiatives. The “good” news is that government itself is exempt from paying GCT and there is not much to be realized from the Opposition.

That Jamaica has a substantial fiscal deficit is an unquestionable fact. All are experts in how we got into this situation. But we are in a pickle and no experts have come forward with any workable plan. Lots of hope and wishes. Voodoo economics and bandooloism abound. The sad fact is that we have a systemic leadership deficit.

Watch the games being played. The Minister of Finance announces a dreaded tax package in Parliament at a special sitting. The Prime Minister announces the “revised” package on TV. Why is it that the bearer of the bad news is not the one to announce the “acommodation”? Who negotiated such a horrible package with the IMF? Is Audley Flaw being set up? Will the real Minister of Finance please stand up?

Given the dismal record of the named (and maimed) Minister of Finance, we have to question seriously the notion of collective responsibility. On each and every occasion, did the Cabinet approve the taxation package to be announced?

We can only hope that Audley Shaw’s middle name is neither Stephen, Stewart, Samuel or Sidney. For then it would be more than destiny if he turns out to be a perfect A.S.S.

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