‘Explore further cuts’
Tuesday 22nd June 2010, 3:00PM BST.
IOD chairman Gary Drinkwater
MORE options for cuts in public sector spending need to be put on the table before proposals for potential tax increases are considered, according to the chairman of the Jersey branch of the Institute of Directors.
Gary Drinkwater says that more information on other potential cuts should be made available before tax rises – such as a two per cent increase in GST – are formally put forward.
For example, he said that before considering tax hikes, the costs associated with scrapping the generous public sector final salary pension scheme should be calculated and published.
He also wants more information on how much could be saved by pan-island provision of services such as financial and competition regulation.
Meanwhile, he said proposals for a 30p tax rate for higher earners ‘would kill us’. The proposal is for the higher rate to kick in at £100,000.
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a 30p tax rate for higher earners ‘would kill us’
Sorry Mr Drinkwater , but welcome to the real world where most of us mere mortals live.
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STOP further taxes!
20% now!
Earn £100,000 keep £80,000.
Earn £1,000,000 keep £800,000.
isn’t that what 20% means?
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If we create a higher tax band the wealthy islanders who arrived due to the low taxes will leave- which will impact the whole island.
We should be taking advantage fo the recent tax rises in the UK, by capitalising on the residents and funds flow that will arrive in jersey as a result, not pushing it away.
uneducated comments like Marks will be the down fall of Jersey!
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How about the ‘ultra rich’ paying 20%. That might be a start..
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I couldn’t agree more with #3. There is no point of adopting a “them and us” attitude. The reality is that high earners have the choice and capability to move to other competitive low tax juristictions such as Monaco, the Cayman Islands and Isle of Man. They may pay a lower percentage of tax but they contribute and support the Jersey economy through high spend locally. Increasing the tax rate will only push away these high earners, which is no good for our economy and thus no good for anyone.
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Anon…what about the wealthy islanders who arrived having “made a deal” with the tax office? If anyone wants to live here (and take benefit of a low i.e. 20% tax rate) shouldn’t they be prepared to allow their funds to flow at 20% tax rather than capitalising on existing residents paying 20% whilst they negotiate a lower rate?
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#5 who are you suggesting has a “them & us” attitude?
Quote “The reality is that high earners have the choice and capability to move to other competitive low tax juristictions” suggests that low earners don’t have that choice and capability. Isn’t that “them & us”? High earners have choice, lower earners must pay 20%. Consider equality….20% tax for ALL island residents above tax threshold, regardless of whether the are high or lower earners.
…and where is there evidence that high earners also have a high spend locally? I suspect this is a much promoted fallacy.
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So Mr Drinkwater is a person who does not believe in honouring an agreement.
Re his comment “generous public sector final salary pension scheme”
Having worked in the public sector for 32 years, I had no option at the time of accepting the post but to join the pension scheme. So, with a not tremendous wage, a mortgage at 10% interest and pension deductions…. we scraped by.
Now we have people like Mr Drinkwater who want to suggest the employer renege on an agreement with the employee. An agreement is worth nothing then and as the Chair of the IOD, I don’t think I would want to do business with such a person who has no obligation to honour a deal.
And what would he like the States to do with all the money they have deducted from my wages over 32 years…..keep it as a donation to the rainy day fund I suppose.
I wonder Mr Drinkwater how much you’re pension scheme is worth compared to mine, a darn lot more I bet.
And finally, YES, make the wealthy pay more tax and they should pay more social security, why is there a ceiling where the wealthy pay the same as the lower paid.
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anom (3) uneducated comments like Marks
Take care ‘anom’ by Jersey standards I am very well educated and local. I have also experienced 40% tax rates and lived. You speak on matters of which you are ignorant, 30% tax killed nobody, however 20% for all would be a good start.
Truth (2), J-Cat (4), Truth (6) have it on the button. If the ‘imports’ want to go home to 20% VAT, let them go.
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The reduction in the UK deficit is to be funded 77% by cuts and 23% by higher taxes. Why can’t Jersey do the same? We are too afraid of public sector strikes is the answer – the spectre of Renee Liron lives on…..
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I have read all of your comments and of course fairness lies with the beholder. But the truth is that we do not have the data of detailed public spending so our comments are based on a lack of evidence. This of course is by design.
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It is quite right that further opportunities to cut waste and spending are looked at before taxes are put up. Well said IOD. Its time the Jersey public woke up to the levels of waste and unsustainable spending currently going on. Also consider the poor attempt made by the Departmental Ministers in identifying the areas to be cut. IMHO this is a ‘phoney war’ and we are being set up with front line service shroud waving while the waste and real issues continue. When the wealth creators leave, you will only have yourselves to blame.
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