Devon Dick
THE MOST Honourable P.J. Patterson has mandated the Finance Ministry to find ways to lower the amount of taxes employers and employees pay and also to simplify the tax system. This is an amazing commission for many reasons, but I will deal with a few.
Businessman Joe Matalon headed a tax reform committee, which aimed to simplify the tax structure. This was also recommended in the 1980s. Is the PM in agreement with recommendations of the Matalon Committee? Furthermore, the Matalon Committee had a zero budget increase and emphasised equity between the paying groups, which was not implemented by the Ministry of Finance. Now the PM is going further than the Matalon Committee in mandating a reduction. This also is going in the opposite direction of the Ministry.
The prime minister has had the habit of independent thinking - examining issues and coming to conclusions, without being influenced by other parties. During the last general election campaign when PNP operatives were claiming that free education, meaning free tuition, was impractical, he made a pronouncement to work towards it. A similar situation happened in a previous general election over the Opposition's call for international election observers.
As we approach another Emancipation celebration there needs to be greater independent thinking and statements about the taxation policy of the country. It was only Joe Matalon whom I heard express dissatisfaction with the Dr. Omar Davies' tax package. I never heard Dr. Wesley Hughes, director general of the Private Sector Organisation of Jamaica (PIOJ), and a member of the committee express even disappointment at the cherry-picking exercise in which the minister was engaged. Yet, before the budget at a conference of international partners he chided me for cherry-picking the Matalon tax reform package.
Sadly, apart from Rev Garnett Roper being critical of the heavy tax burden on the poorest due to the compliance rate, the church has largely been silent. This is a far cry from the 19th century when congregations, associations and denominations would pass resolutions and send it to the Assembly and newspapers calling for equity in the taxation policy.
I always wondered why the private sector has been so nonchalant towards these high taxes. I believe that it is because it does not bother them. They largely either evade or avoid the taxes as demonstrated by the poor compliance rate and they also pay workers inadequate salaries to compensate for the high taxes they pay as employers.
The Bible addresses speaking boldly and there needs to be persons who will speak with conviction and without fear and favour. The truth must be spoken in love without rancour.
There was an encouraging sign recently in the Senate. JLP member, Senator Arthur Williams, moved that there be a review of all gun licences. Attorney General, the Honourable A.J. Nicholson and other PNP senators opposed. However, PNP member, Senator Delano Franklyn, supported the need for a review; an example of independent thinking.
When the MPs objected to signing the PSOJ declaration, that was also an example of independent thinking.
Another good example of independent thinking is British Labour MP Diane Abbott, of Jamaican parentage. She is an outspoken critic of British Labour PM Tony Blair because of his invasion of Iraq. This successful, articulate and analytical MP is not a Cabinet minister because, I believe, of her known views.
We need more of that in Jamaica both inside and outside of Parliament. Let us hear the MPs and civil society on the minimum wage and the working conditions of the security guards and police, etc. Sam Sharpe's protest was about persons having the right to be paid for labour. And when the ruling class wanted to pay very little money, the Church became the labour union on behalf of the oppressed. The Bible states that a labourer is worthy of wages. The actions of Sharpe that led to the freedom we now enjoy were motivated by his Christian faith.
This emancipation let the society pledge to engage in independent thinking and pronouncements especially on the levels of taxation.
Rev. Devon Dick is pastor of Boulevard Baptist Church and author of 'Rebellion to Riot: the Church in Nation-Building'.
