Where will new taxes come from?…..Dick’s proposal is worth the read for comedic relief.

An Article from the Jamaica Gleaner

I don’t know how I could have missed this article from Thursday’s Gleaner, but thanks to Cato Rand, who brought it to my attention last night.

As was pointed out by The Ancient Mariner in his article “Kill That Noise”, the Gleaner has a lot of very Progressive/Liberal/Leftist (whateva yuh waan call dem) columnists. The Rev. Devon Dick is one of them.

In this his latest article (see below) Dick attempts to propose a new way of seeking revenue for government. His solution is to impose visas on all visitors to Jamaica….in what he calls a visa tax! It just goes to show how facile his understanding appears to be (which is confusing as he has earned a PhD) of what visas are, because visas are not implemented to generate revenue, but instead it is to restrict entry to one’s country.

This is the visa we want visitors to bring to Jamaica:

iJHuayhGl9JE

Most of us know how heavily dependent Jamaica is on tourism for most of its foreign exchange and consequently our tax revenue. We already impose many taxes on every arriving/departing passenger at our airports. There is a Tourism Enhancement Fund Fee, an Arrival Tax, a Departure Tax, plus Airport Fees. Then if visitors decide to stay in a hotel room (if they can afford to), there is an additional hotel room tax of up to $US4 per room per night charge, plus a 10% tax on the hotel bill.

If we the citizens, who have to live in Jamaica can bear no more of the tax burden involuntarily imposed upon us by our government, why does this Dick think tourists will want to come here to pay our taxes for us? Dick’s thinking is so illogical, these tourists will simply find somewhere else to go to spend their money more economically and we will be the losers in the end!

3035-Fair-tax-logo-40mm-300dpi.jpg

By the way, weren’t we the ones crying foul when the Brits were imposing the Air Passenger Duty (to generate revenue) on their citizens leaving the UK? We had right to be concerned that it imposed additional costs on tourists traveling to the Caribbean and it would hurt tourist arrivals to the region. So how could Dick not think this visa imposition idea of his would not also do the same?  It would be very painful for visitors to get a visa, very inconvenient. It would be painful for all tourism industry stakeholders for lost income from reduced tourist arrivals.

Dick is the typical liberal….you see something today and in their magical minds they believe you can tax future earnings (or tourists), not expecting a change in behaviour with tax evasion (ie tourists traveling to another non-taxed or lower-taxed destination); not expecting a change in economic output from the hurt taxes imposes on the economy, and the consequent reduced income.

Read on, make your own opinion, but I think most readers will agree that this proposal is utter rubbish. Stick to the pulpit Rev, and stop spreading fallacious reasoning through the mainstream media.

-Kavon Fiennes

WHERE WILL THE NEW TAXES COME FROM?

by the Rev. Devon Dick

Published: Thursday | May 9, 2013
 http://www.jamaica-gleaner.com/gleaner/20130509/cleisure/cleisure2.html

RECENTLY, A raft of tax measures took effect, and it is important to ascertain whether the targets established by the government will be achieved. Where will the taxes come from?

There is a story in the gospel of Matthew wherein the disciples wanted to ascertain whether they ought to pay taxes (17:24-27). Jesus told the disciples that the King does not tax his children and, therefore, the disciples were freed from tax obligations because of his relationship to them. However, the disciples have a responsibility to serve the community through the paying of taxes. Jesus told Peter to go and catch a fish and he will find money in the mouth of the fish to pay the taxes. This Peter did. However, since such miracles have ceased, we now have to determine where the taxes will come from.

It seems that the pensioners will be hard hit with an almost 100 per cent increase in property taxes. Pensioners should, therefore, access the door that allows them to appeal when they find property taxes to be onerous. Pensioners should be given special treatment. The ‘no increase’ in taxes on basic food items is a good move, because PATH will not capture everyone, and persons in the middle class give generously and regularly to persons who need basic food plus this route would dry up if basic food items are taxed further.

There are inherent dangers in increasing the gas tax. According to Minister of Transport, Housing and Works Omar Davies, the public transportation system is in danger of collapse because of devaluation of the Jamaican dollar, rising costs and increases in fuel cost. Bear in mind that the increase in fuel cost and inflation is related partly to the gas tax.A fare increase will pressure overburdened Jamaicans, most of whom are facing a wage freeze, or who got increases that were below the inflation rate. Therefore, an increase in gas tax would have undesirable ripple effects throughout the economy.

The minster of finance, Peter Phillips, announced that many taxi operators are now paying a flat tax. Other bigger players need to come on board. Self-employed doctors, lawyers and large income earners need to pay their fair share. The minister of finance needs to meet with these groups to remind them of their civic responsibility. The Oversight Committee, appointed by Phillips and headed by businessman Richard Byles, should encourage high-income earners to pay their fair share.

EASY, PAINLESS METHOD

And it seems to me that another avenue of revenue generation is targeting tourists and members of the diaspora. Obviously, the Government feels that these groups have disposable incomes to spend, hence the proposed introduction of casino gambling. And based on that premise of disposable income, establishing a visa regime would be an easy and painless way to increase our tax revenues.

This is not a unique idea. St Maarten, a Dutch dependency, imposed visa tax on Jamaicans. Similarly, three British dependencies, the Cayman Islands, Turks and Caicos and the British Virgin Islands have the visa tax. The United States, United Kingdom and Canada have made it obligatory for Jamaicans to obtain visas before we can enter their countries. Even Jamaicans who fought as soldiers beside the British in World War II have to get visas to visit Britain. It is possible to charge a net of US$100 for a five-year Jamaican visa. And, since 1.2 million visitors arrive in Jamaica annually, it means that Jamaica could earn US$120 million.

It is unrealistic to expect to garner more taxes, in a declining economy, from ordinary Jamaicans. The Government must cut expenditures or get the taxes from outside, such as a visa tax.

Rev Devon Dick, PhD, is pastor of the Boulevard Baptist Church in St Andrew. Send comments to columns@gleanerjm.com.

Advertisements

About RightFromYaad

A view from "the Right", as a source of ideas to create a new vision of freedom and what it promises for Jamaicans, to counter the tyranny of the status quo of Jamaica's reality since 1962. Website: RightFromYaad.wordpress.com Email: rightfromyaad@gmail.com Twitter : @rightfromyaad Facebook: https://www.facebook.com/pages/Right-From-Yaad/244886608978438?ref=ts&fref=ts
This entry was posted in Articles/Columns from Jamaican newspapers, Economics, KAVON FIENNES, Right From Yaad, Tourism and tagged , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s