The taxman cometh

Omar Davies has yet again presented the latest version of the "run-Jamaica-into-ruin" plan, also known as "the budget". Of course, not many believe that the budget that Omar presented is the final version. This is simply the election version, with more taxes and borrowing to come after the elections that should be called later this year and that, my friends, is pretty scary.

The government is increasing taxes and focusing on collecting outstanding taxes but has still not created an environment in which small and medium sized businesses can flourish (which would increase tax revenue) or an environment in which most people want to pay their taxes because they can see their tax dollars at work, whether it be in the form of (properly) fixed roads, better schools, better health care or more affordable housing.

As it is, the average Jamaican gives up almost 50% of their salary to the taxman. 25% to income tax, 16.5% to GCT and another couple percent to the various statutory deductions. What do we have to show for it? Not much, except for a cycle of borrow because we don't have enough tax revenue to finance the budget then tax more to pay back the loans.

I can't wait to see what Omar the three card man announces after the elections this year - the Observer's editorial cartoon hit the nail on the head.