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People Power(less)
People Power(less) Olive Nelson, Guest Columnist
Two months after her landslide victory at the polls, Prime Minister Portia Simpson Miller announced, "We came to power on the theme 'People Power' and we are serious about people power." (Gleaner, February 24, 2012
Why then am I now feeling so powerless? Why then do I now not even have the power to insist that our political representatives demonstrate some willingness to respond to their own persistent belt-tightening calls? Why then will no one take seriously the urgings of the people that our political leaders, the chief architects of our economic ruin, become the lead participants in the "strenuous and upfront adjustment" to which Finance Minister, Peter Phillips recently alluded? (Gleaner, February 15, 2013).
And why, oh why, am I being constantly telegraphed the nagging message that I am an 'eediat' and cannot really understand what is taking place anyway; that I should just suffer in silence, pay my taxes and traffic tickets, swallow each dose of the bitter medicine with a smile and without question, giving thanks that it is being administered by a People's National Party, rather than a Jamaica Labour Party Government?
Yes, I am prepared to do penance for my reckless voting habits of the past, for not more actively embracing opportunities for political third-party support. Yes, now that the Government has accepted that the country is sinking, I accept that I am partly to blame. Consequently, I am prepared to answer the call for all hands to come on deck
NO PROBLEM AT ALL
Yes, it is all right to impose yo-yo taxes on me, to raise the income tax threshold today and the education tax tomorrow. No problem at all. It is quite all right to keep me (the eediat) happy in the belief that an International Monetary Fund (IMF) agreement is ever in sight, though its now ageing staff-level precursor is clearly not yet sufficiently 'agreed' to ascend to the lofty board level. No problem at all.
And it is quite all right to raid the coffers of the National Housing Trust (NHT), for in times of trouble, the Consolidated Fund is, unquestionably, the most appropriate destination for all idle public-sector surpluses. And why the fuss anyway? Haven't we been doing that with the education tax for decades?
Yes, I am prepared to do whatever it will take to get us out of this crisis. But what will happen after the final tranche of the IMF funds is drawn down?
On March 24, 2013, a visioning Cabinet hurried from its fascinating IMF Watch into another retreat, ostensibly without any contingent prompting from the IMF, reportedly to discuss "growth, including job-creation strategies, human capital development, social inclusion, improved security and safety, fiscal prudence and the pursuit of a credible economic programme". Horrors! What then had been the Cabinet's agenda for the previous four retreats and on what basis has it been negotiating with the IMF all this while?
Now that the retreat is over, I expect to hear soon of the Government's vision for sustainable development after the IMF. I expect to be able to make up my mind as to whether the belt-tightening will all be in vain - again.
IMF's INFLUENCE
Perhaps this is what has pushed the Cabinet into this most recent retreat - an insistence by the lending agencies for some assurance, prior actions notwithstanding, that the country will have the capacity to honour its loan-repayment obligations in the future. Perhaps this is why the retreat agenda has been so carefully formulated and so open for public scrutiny this time around. Perhaps we ought to be grateful to the IMF after all.
I would be even more grateful if they would try to have the following two items from my wish list included on the sixth retreat agenda:
1) That measures be immediately instituted to ensure that the NHT mandate for providing houses for contributors be more diligently and creatively pursued so that never again will it be able to amass such excessive operational surpluses while some 80 per cent of the national requirement remains unfulfilled
2) That the farce called education tax be brought to an end, the employers' portion be returned as a component of a six per cent HEART Trust rate (the additional three per cent to be used to fund students' loans and such other national educational imperatives as may be dictated from time to time), while the employees' portion continues to find its way into the Consolidated Fund as part of a 27 per cent PAYE income tax rate
The latter would serve the dual purpose of somewhat simplifying the tax regime while guaranteeing some benefit to education. Both items appear to fit nicely into the "human capital development and social inclusion" agenda of the Cabinet, as well as the 'People Power' rhetoric
Over to you, Mr IMF
Olive Nelson is a chartered accountant. Email feedback to columns@gleanerjm.com and olivescottn@hotmail.com.
Two months after her landslide victory at the polls, Prime Minister Portia Simpson Miller announced, "We came to power on the theme 'People Power' and we are serious about people power." (Gleaner, February 24, 2012
Why then am I now feeling so powerless? Why then do I now not even have the power to insist that our political representatives demonstrate some willingness to respond to their own persistent belt-tightening calls? Why then will no one take seriously the urgings of the people that our political leaders, the chief architects of our economic ruin, become the lead participants in the "strenuous and upfront adjustment" to which Finance Minister, Peter Phillips recently alluded? (Gleaner, February 15, 2013).
And why, oh why, am I being constantly telegraphed the nagging message that I am an 'eediat' and cannot really understand what is taking place anyway; that I should just suffer in silence, pay my taxes and traffic tickets, swallow each dose of the bitter medicine with a smile and without question, giving thanks that it is being administered by a People's National Party, rather than a Jamaica Labour Party Government?
Yes, I am prepared to do penance for my reckless voting habits of the past, for not more actively embracing opportunities for political third-party support. Yes, now that the Government has accepted that the country is sinking, I accept that I am partly to blame. Consequently, I am prepared to answer the call for all hands to come on deck
NO PROBLEM AT ALL
Yes, it is all right to impose yo-yo taxes on me, to raise the income tax threshold today and the education tax tomorrow. No problem at all. It is quite all right to keep me (the eediat) happy in the belief that an International Monetary Fund (IMF) agreement is ever in sight, though its now ageing staff-level precursor is clearly not yet sufficiently 'agreed' to ascend to the lofty board level. No problem at all.
And it is quite all right to raid the coffers of the National Housing Trust (NHT), for in times of trouble, the Consolidated Fund is, unquestionably, the most appropriate destination for all idle public-sector surpluses. And why the fuss anyway? Haven't we been doing that with the education tax for decades?
Yes, I am prepared to do whatever it will take to get us out of this crisis. But what will happen after the final tranche of the IMF funds is drawn down?
On March 24, 2013, a visioning Cabinet hurried from its fascinating IMF Watch into another retreat, ostensibly without any contingent prompting from the IMF, reportedly to discuss "growth, including job-creation strategies, human capital development, social inclusion, improved security and safety, fiscal prudence and the pursuit of a credible economic programme". Horrors! What then had been the Cabinet's agenda for the previous four retreats and on what basis has it been negotiating with the IMF all this while?
Now that the retreat is over, I expect to hear soon of the Government's vision for sustainable development after the IMF. I expect to be able to make up my mind as to whether the belt-tightening will all be in vain - again.
IMF's INFLUENCE
Perhaps this is what has pushed the Cabinet into this most recent retreat - an insistence by the lending agencies for some assurance, prior actions notwithstanding, that the country will have the capacity to honour its loan-repayment obligations in the future. Perhaps this is why the retreat agenda has been so carefully formulated and so open for public scrutiny this time around. Perhaps we ought to be grateful to the IMF after all.
I would be even more grateful if they would try to have the following two items from my wish list included on the sixth retreat agenda:
1) That measures be immediately instituted to ensure that the NHT mandate for providing houses for contributors be more diligently and creatively pursued so that never again will it be able to amass such excessive operational surpluses while some 80 per cent of the national requirement remains unfulfilled
2) That the farce called education tax be brought to an end, the employers' portion be returned as a component of a six per cent HEART Trust rate (the additional three per cent to be used to fund students' loans and such other national educational imperatives as may be dictated from time to time), while the employees' portion continues to find its way into the Consolidated Fund as part of a 27 per cent PAYE income tax rate
The latter would serve the dual purpose of somewhat simplifying the tax regime while guaranteeing some benefit to education. Both items appear to fit nicely into the "human capital development and social inclusion" agenda of the Cabinet, as well as the 'People Power' rhetoric
Over to you, Mr IMF
Olive Nelson is a chartered accountant. Email feedback to columns@gleanerjm.com and olivescottn@hotmail.com.