Dear Editor,
While, for the sake for the country, at least, we would all wish the best for the Jamaica Labour Party (JLP), now that it has returned to Government, I must admit that I am worrying.
The JLP promised a lot of things that will not be cheap or easy. How will this new JLP Government fulfil these promises?
Perhaps the most immediate promise made by the JLP is to relieve PAYE taxes from those earning less than $1.5 million. In addition to not hearing anything creditable as to where the replacement taxes will come from to pay for giving up these taxes, how will the new Government address the inequities that will result between those earning just above $1.5 million paying PAYE and those earning just under that amount being tax-free?
With the increase in this tax-free pay for some, more workers will have more money to spend. Yet, at the same time, the economy is not growing and there is no increased production. With more money to spend, how will the JLP prevent an increase in inflation?
The JLP has promised to raise the minimum wage significantly. A lot of small business owners now have workers who are being paid below the planned new minimum wage. Many of these business owners are already struggling to keep these workers. How does the JLP plan to enable these business owners to keep these workers if they cannot pay them the increased wages?
The JLP promised to create 250,000 new jobs if it wins the election. That is 50,000 jobs a year. Now that it has won, how does it plan to fulfil this promise in an economy that has been stagnant now for over 30 years? Will these be ‘crash work’ jobs?
Indeed, how will it pay for the many other services, like health care, education, roadwork, and the lot if, as it promised, it will give up these taxes but not raise new ones in a fiscal arrangement that is already very tight for the Government?
I really can’t see the new JLP Government fulfilling these promises without giving up something. Either it will have to borrow more or spend less in other areas. We are in for some very challenging times ahead.
Michael A Dingwall
michael_a_dingwall@hotmail.com
While, for the sake for the country, at least, we would all wish the best for the Jamaica Labour Party (JLP), now that it has returned to Government, I must admit that I am worrying.
The JLP promised a lot of things that will not be cheap or easy. How will this new JLP Government fulfil these promises?
Perhaps the most immediate promise made by the JLP is to relieve PAYE taxes from those earning less than $1.5 million. In addition to not hearing anything creditable as to where the replacement taxes will come from to pay for giving up these taxes, how will the new Government address the inequities that will result between those earning just above $1.5 million paying PAYE and those earning just under that amount being tax-free?
With the increase in this tax-free pay for some, more workers will have more money to spend. Yet, at the same time, the economy is not growing and there is no increased production. With more money to spend, how will the JLP prevent an increase in inflation?
The JLP has promised to raise the minimum wage significantly. A lot of small business owners now have workers who are being paid below the planned new minimum wage. Many of these business owners are already struggling to keep these workers. How does the JLP plan to enable these business owners to keep these workers if they cannot pay them the increased wages?
The JLP promised to create 250,000 new jobs if it wins the election. That is 50,000 jobs a year. Now that it has won, how does it plan to fulfil this promise in an economy that has been stagnant now for over 30 years? Will these be ‘crash work’ jobs?
Indeed, how will it pay for the many other services, like health care, education, roadwork, and the lot if, as it promised, it will give up these taxes but not raise new ones in a fiscal arrangement that is already very tight for the Government?
I really can’t see the new JLP Government fulfilling these promises without giving up something. Either it will have to borrow more or spend less in other areas. We are in for some very challenging times ahead.
Michael A Dingwall
michael_a_dingwall@hotmail.com