WITH such a clear statement of future policy, much attention is focussed on Treasury and Resources and the workload its new minister has effectively tasked its officials and new members to undertake.
One of the hardest – but potentially most welcomed – initiatives to achieve is the introduction of a tax credit system to help the least well off islanders.
Research already done by the States has revealed an unacceptably high number of people here in relative poverty and too little has been done to help them, despite promises by States members. Introducing a system that gives people money according to need instead of simply removing it according to wealth as happens now will be a significant step forward.
The issue, however, is who pays for it. Unless government spends less pound for pound given to those in need, other islanders will have to pay more. That will not sit comfortably with many, who already believe they are under zero-10 subsidising businesses, especially the wealthy financial institutions. Middle earners believe they have been hit hard and that impression – whether correct or not – is compounded by rising fuel and heating costs and increased food prices.
And while the States is committed to the redistribution of wealth, it is difficult to see on the evidence of zero-10 where it is going to come from other than the middle earners.
Thus far, the States has no stomach for introducing a higher tax rate for the super-wealthy – the average salary for everyone in the legal sector alone is £140,000 – and those with money are best placed to minimise their tax bills through sophisticated avoidance schemes.
All of which means that the new ‘chancellor’ will have a familiar audience in mind when he wishes to raise more money, no matter how deserving the cause.
True, he has said that the corporate sector should fund the tax credit system but again there is an element of squaring the circle.
Zero-10 was about ensuring Guernsey remains a competitive place to do business and while tax on real property is seen as holding more scope for raising cash from corporates, that was in the context of plugging the grey hole, not filling something new.
Avoid the same target
WITH such a clear statement of future policy, much attention is focussed on Treasury and Resources and the workload its new minister has effectively tasked its officials and new members to undertake.
One of the hardest – but potentially most welcomed – initiatives to achieve is the introduction of a tax credit system to help the least well off islanders.
Research already done by the States has revealed an unacceptably high number of people here in relative poverty and too little has been done to help them, despite promises by States members. Introducing a system that gives people money according to need instead of simply removing it according to wealth as happens now will be a significant step forward.
The issue, however, is who pays for it. Unless government spends less pound for pound given to those in need, other islanders will have to pay more. That will not sit comfortably with many, who already believe they are under zero-10 subsidising businesses, especially the wealthy financial institutions. Middle earners believe they have been hit hard and that impression – whether correct or not – is compounded by rising fuel and heating costs and increased food prices.
And while the States is committed to the redistribution of wealth, it is difficult to see on the evidence of zero-10 where it is going to come from other than the middle earners.
Thus far, the States has no stomach for introducing a higher tax rate for the super-wealthy – the average salary for everyone in the legal sector alone is £140,000 – and those with money are best placed to minimise their tax bills through sophisticated avoidance schemes.
All of which means that the new ‘chancellor’ will have a familiar audience in mind when he wishes to raise more money, no matter how deserving the cause.
True, he has said that the corporate sector should fund the tax credit system but again there is an element of squaring the circle.
Zero-10 was about ensuring Guernsey remains a competitive place to do business and while tax on real property is seen as holding more scope for raising cash from corporates, that was in the context of plugging the grey hole, not filling something new.
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