The Editor, Sir:
A letter to the Editor published April 2 recommended that Jamaica simplify the tax system by instituting a 20 to 25 per cent General Consumption Tax (GCT) on goods and services as the only tax. This recommendation is typical of the influential in our society.
The upper middle class and the rich love the idea of a consumption tax only, as that would relieve them of paying what I consider their fair share of the taxation needed to run the country. The claim that efficiency would result and the rich would have an incentive to invest in their country is their mantra.
In my humble opinion, the GCT tax is a most oppressive tax on the poor and working class. It consumes a greater portion of their income than on the middle class and the rich.
My suggestion for tax reform is first to reduce the GCT rate to 10 per cent, or lower, and increase the threshold to at least $500,000 and to have a graduated income tax on individuals and corporations. For example, from $500,000, to $1 million the rate should be 15 per cent at most and the percentage increases with the income to a maximum of 50 per cent on income over $20 million.
After all, they utilise more of the provisions of government than anyone else. All of us should pay a proportionate share of our income and not place most of the burden on the working class and the poor.
I am etc
ANDRE BELL
andrebell7@hotmail.com
Spring Valley,Tower Isle P.O.
St. Mary
Via Go-Jamaica