Shane You are absolutely spot on there. If a GST is ever introduced in Guernsey, and I think it should be, but in a much cleverer way than Jersey, then it could be applied in such a way that it not only eliminates the naturally regressive nature of it, but that it also passes direct benefit to lower earners. It would make sense to do it an economically worthwhile level, say 10%, to make the cost of collection and implementation viable. I believe I am correct in saying that this would raise around £100m annually. Mortgage interest relief could be maintained at £400k. All earners of say £25k and below, including retirees, could not only be exempt from income tax altogether, but could receive maybe £100 per month directly back via the GST system to effectively reimburse them for all GST suffered. We could then look at income tax rates of just 10% up to £50,000, 15% between £50,000 and £100,000, and 20% over £100,000. A much fairer overall tax system for everyone, with GST being used positively. Maybe £100m raised (gross) from GST would end up raising a net extra £50m or £60m, but lower and middle income earners would get a much better deal, while higher income earners who spend more would end up paying more via their spending/consumption, Oh, and levy GST on imported goods to prevent avoidance via Internet shopping. No need to materially change the corporate tax system either, so that side is taken care of. Couple it with ongoing tight budgeting of government, and deal with the States pension scheme and we'd be in an infinitely better and fairer tax system all round.
Voice For Victims
Voice for Victims is a campaign aimed at promoting the rights of those affected by child sexual abuse.
