Phillips Says More Taxes, Wage Restraint Coming

[Skeng DX]

Finance Minister Dr Peter Philips has announced that there will be more taxes and public sector wage restraint as the Government prepares to enter a deal with the International Monetary Fund (IMF).

Phillips made the announcement at a press conference this morning following the three-day Cabinet Retreat.

“Tax measures will be required,” he told journalists.

He also said framework for public sector wage restraint and other matters must be settled before the IMF deal can be signed.

While not going into the details, the Finance Minister disclosed that a programme was unanimously agreed on to reduce Jamaica's debt which now stands at $1.7 trillion.

The finance minister also disclosed that Jamaica's primary surplus will increase from 6.3 to 7.5 per cent of Gross Domestic Product for the next fiscal year.

According to Philips, the government’s technical team is now in the final stages of discussion with the IMF to finalise a deal.

He said a full report will be provided once the deal is finalised, but stressed that the most vulnerable will be protected.

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[Gamma]

"bitter pill"?

[Willi]

No man, help has arrived.

Seriously though, I hope it is sold properly as its inevitable. Only the simplistic thought otherwise...

[Gamma]

"lie to me, PLEASE"!

[Willi]

Dat time has passed.

Reality is a female dog...

[Rockman]

Signing that IMF agreement will be political suicide for the PNP.

[Gamma]

not signing it will be economic suicide ... choose ...

[Assasin]

Tell that to the union bosses and others who expect to get gravy.

[Rockman]

Hail gamma!
FINSAC was the rock for the yard businesses that....and Jamaica Redevelopment Fund(a NY company)was the hard place.
The "altruistic" IMF would not have encouraged Chavez (same with Brazil)to sever ties.....,in hindsight it was the progressive thing to do.
There is need for more social programs,continued medical reforms,strengthening of workers protection groups(Unions) etc,an IMF agreement circumvents all that.

[Assasin]

Jamaica Redevelopment company owned by a Texan. Our current export can't pay for the oil products that we import. Export was down this year in dollars form even with devaluation. We are in a mess.Stenghting of unions? Rocky? I don't think our unions need anymore strenght.

If we can't do it for ourselves, somebody else will. If you can't produce over long period you will reduce. No other wayout.

[Hortical]

We need to cut government waste. Sumady can't ask bout dem gov't vehicles, lifetime full salary for ex PMs etc. Too much emphasis on raising taxes. In California there are limits to the percentage increase in taxes, based on one of their ballot propositions.

[Me]

Too much emphasis on taxes, but you list California? They are one of the places that approved tax increases during the November elections.

[Hortical]

True they raised income taxes based on a ballot inititive in November.
I was referring to an old proposition where annual property tax increases could not exceed 2% per year.

[Me]

http://www.assessor.saccounty.net/Ge..._Real_Property

Proposition 13, values property at its 1975 fair market value with annual increases limited to the inflation rate, as measured by the California Consumer Price Index, or 2%, whichever is less.

Subsequently, real property is reappraised for tax purposes only when:
A change in ownership occurs
New construction is completed

Not that high value or low value matter to any state because property taxes typically go to local government instead of states.

[Sir X]

Wi dead now , wi cant borrow money (debt) fi pay down debt,ridiculous we all agree we that Jamaica, with a debt of between 130 to 140 per cent of GDP cannot borrow anymore , so why are we borrowing ?

The talk about borrowing from the IMF to pay down debt is a fallacy for third world nations, since independence we have been going this route , where are the progressives to negotiate with the bank of the South ? China , India , SA etc etc THE G20 to find a credible economic solution.

It isnt a bitter pill , its poison.