Where the Truth Lies: De-Taxification

Prediction about IMF

Didn’t I tell you that any agreement with the International Monetary Fund (IMF) would likely lead to hardships? Assurances were given by the Prime Minister and the Intelligent Finance Minister (IFM) that the Fund had changed since it was typified as the Debt Trap by Cheryl Payer and the documentary Life and Debt. All researchers who have studied the activities of the IMF and World Bank know that their policies generally require; reduction of public expenditure, decrease in welfare spending, retrenchment in the public sector, divestment of public companies, restrictions on wages, devaluation and general facilitation of the capitalist class at the expense of workers. This is old news and there are no success story.

Honesty Please!

Look! I like Bruce Golding and I hope, for all of our sakes that he succeeds. Whether he and the other folk of Greenland wish to be like Lot’s wife and constantly look back at what their predecessors from Orange Field did, it is his problem now and nobody begged him to take the ‘wuk.’ Believe me, he has my support and anything that I can do to make him succeed, although I am thankfully not in his cabinet, I will do. But for God’s sake man, let us know what the truth is!

Ignorance of Global Crisis

In September 2008, the IFM promised us that we would not be seriously affected by the global crisis. While the sensible among us knew that it was as much bull as we find annually at the Denbigh Agricultural show, some were naïve enough to think that in the desert storm which was being predicted world wide, we would have a cool oasis.

Four Tax Packages

For the fourth time this year taxes have made a yo-yo, see saw journey. Last week taxes increased with such volume that one additional one also rose; heart-a- tax. With break-back speed the General Consumption Tax (GCT) was added unto so many items we became as confused as a minister. More water than flour, sardines, hardly any item was exempt, the entire national dish was on the chopping block. Ackee, among the list of ground provisions, had joined her companion saltfish. Basic toiletries such as tissue were added in one swipe. Women understandingly had their anger flowing claiming that the tax on sanitary napkins was immense and unfair. The impact of this was likely to be devastating on the working class as they would have been bleeding for much of the post Christmas period and few optimists spotted any relief. Many cried deception, saying that government has given them a six for a nine or rather, a six for an eight because they have left us short. Given everything that was being done to the poor we were lucky that condoms did not attract GCT.

We are in for a rough ride. Make your mind up! Either the IMF dictates to you, or you make the decision yourself. The old IMF used to tell an aspiring borrowing state that it had to do a number of things before it could be considered to get the money.

IMF Conditionalities

These were called conditionalities. IMF dictates and we take. Now we are told that the Fund has changed, therefore it does not dictate to any country what to do. Our government cannot have it both ways, whoever they have in the cabinet. They cannot say that the tax initiative is the dictate of the IMF while claiming independence. What the IMF said was that the budget be balanced. Of course, pay your bills, show how you are going to earn as much as you spend. Then you can come and be considered for a loan. Is that independence?

Decision of Government

Here is the truth, the independence lies between the Prime Minister and Minister of Finance. They decide how the budget is going to be balanced. So then it is a vicious circle. If we had got the money from the Fund, we would not have had to raise the taxes. But raise taxes we have to. What this needs is forethought or at a minimum, thought

Strangely, despite the suggestions of learned economists that the rich should have been targeted via interest on government paper etc, this was ignored. Then the opposition People’s National Party (PNP) rebelled. The tongue of the Comrade Leader was drawn and six protests were carried out across the land. Withdraw they said and stop doing it to the people; it is too hard for them. Return to 'Parliement' for a debate, was the call.

Recant

Then the PM spoke... eloquently ... without the benefit of an erudite IFM. He asked the people to understand, he said he had listened to them and now he is rolling it back. Not a complete roll back but he leaves an inch as we feel less of a pinch. GCT now moves from 16.5 to 17.5 percent. Persons earning above $5 million will now pay income tax of 27 percent. Hah! He now listens, but he cannot simply recant to what the PNP demanded because he is running the country. It will appear that he did not have any idea what to do in the first place.

This is the problem in leadership. Just as it was in September, we are left unconvinced about where we are being driven to. Male drivers often ignore directions or fail to ask for them simply because the woman beside them chats too much.

Hmmm!

It is now more bearable but GCT remains on a number of items. Still, poor people can once again buy the cheap goods and ground provisions. However, clothes will also continue to be expensive. Shoes will still attract GCT, so we are going to have to use cheaper footwear this festive season.

My choice of slippers are flip flops.