Jamaica's Government Discriminates against the Poor and the Unemployed by the imposition of Indirect Taxes, perfect recipe for increase Crime.

The imposition of indirect taxes on the population by the Jamaican government is inhumane and immoral. The backward and crooked rationale for this taxation according to the Finance Ministers; Mr. Audley Shaw and Ms. Fayval Willams is to fill the gap that is being created to fulfill the election promise to increase tax threshold of the working class up to $1.5M. That is, to remove income tax from the working class up to an earnings of $1.5M. Notwithstanding the fact the election promise was made in no uncertain words that no new taxes would be imposed to fulfill that promise.

Now, what is Indirect Taxation? Essentially these are taxes or fees that are charged on goods and services equally to every member of the population who have to pay for them. It is levied equally on everyone, no matter what their income is or whether they earn an income or not. An example is the 7% tax increase on fuel price less than a year ago. This impacted severely on the poor and the unemployed which curtailed their travelling to places of business or otherwise, that they would want to do. In addition the increase price of fuel inturn caused increase in the price of basic consumer items such as supermarket products which the poor and the unemployed still have to find miraculous ways to buy or would love to buy, as still normal human beings of society.

In contrast to Indirect Taxation is Direct Taxation. In Direct taxation persons pay taxes based on the abilty-to-pay-principle. That is, persons are charged taxes based on the amount that they earn. This is the equitable or the fair and impartial form of taxation. On the other hand Indirect taxation is well known as the inequitable form of taxation. That is the unfair form of taxation. Not only that, but Indirect tax is also know as Regressive Tax. Now what is regressive taxation? The word regressive comes from regression which simply means, 'return to a former or an an earlier stage of life.' This could be interpreted as going back to the days of slavery! Hence the word Regressive means, 'taking a proportionally greater amount from those of lower income.' That is from the poor and even the unemployed. In more complex Economics language it means that, 'that the average tax rate exceeds the marginal rate.' In general Sales tax is an Indirect Tax. This takes a larger percentage of income /money from the low income tax payers than from the higher income tax payers.

No matter what you put Indirect taxes on or how little it maybe, it will cost the poor and the unemployed more to pay for the goods or service, by paying more tax out of their little monetary resources, than what it cost the persons of higher income. Even if you put the tax on alcohol or cigarette it will have a devastating effect on the poor and the unemployed. It will deprive them of what maybe their only form of relaxation to calm their minds from violent and aggressive behavior of criminal activity. A clear act of discrimination.

In December 2016 the Finance Minister made public statement that more Indirect Taxes are coming in March 2017 budget to fund further increase of tax threshold to 1.5M dollars. The following day Dr. Andre Haughton, Lecturer in Economics from the University of the West Indies (UWI) supported Mr. Shaw's Indirect tax pronouncement as the way to go. At no point did I hear Dr. Haughton make mention of the inequitable and regressive nature of Indirect taxes , and its impact on the poor and the unemployed. Whereas, the female IMF Representative last year, made a very intelligent, conservative and objective statement warning the government of the effect of Indirect Taxes on the poor. I find Dr. Haughton's behavior to be disgusting, unethical and unprofessional as an Educator representing UWI's identity. He need to define himself as to whether he is a Politician or an Educator when making national comments. He certainly cannot speak with two voices/ identities at the same time. The UWI administration should address Dr Haughton's unethical behavior as an Educator at UWI in making national comments on issues.

At the same time government Senator Aubyn Hill's address to the Senate which was aired publicly in statement recently that, pushing the tax threshold to $1.5M is to benefit the neediest. This gentleman's Capitalist way of thinking would not allow him basic intelligent behavior to know and understand who are the neediest in Jamaica. The needist in Jamaica are the poor and the unemployed who handle no monetary resources near to $1.5M for the year. Generally their monetary resources do not exceed $0.5M for the year. His agreement and reason then, to have the tax threshold put to $1.5M with the use of Indirect taxes by his colleague Finance Ministers is really senseless and retarded. Now you are going to put more taxes on the poor and the unemployed, to pay it out of what more?? Oh, its now time for the poor and the unemployed to die from hunger and starvation, and to get rid of them out of society!

In the same way Mr. Aubyn Hill in collusion with former Minister of Agriculture Dr. Christopher Tufton sold the sugar companies to foolish people, Pan Caribbean that knows nothing about sugar industry and instead of making it better, destroyed the sugar industry. As the Salesman, Mr Aubyn Hill was only concern about getting his cut of the money, who he sold it to was of no concern to him. That destructive action destroys all the livelihood/income of the poor cane farmers who use to depend on it for a living. This includes me and all my relatives and friends in Western Jamaica. Then you wonder why the crime rate is so high in Western Jamaica, as some people turn to criminality as way of survival. Sorry Mr. Aubyn Hill, we can do without your international bankruptcy of intelligent and humane behavior in the public affairs of this civilized country.

In reputable countries of the world such as; USA, Canada and England, they use small percentages of Indirect taxes in their economies. But even though it is small percentages, they have strong social welfare programs in place to protect the poor and the unemployed from the inequitable and regressive effects of such taxation. Jamaica has no social welfare to protect its poor and unemployed from Indirect taxes. The only thing Jamaica has in place for the poor and the unemployed is to allow them to die from hunger and starvation, socially. Then your body will get a little box and a little spot at the May Pen Cemetry as your welfare! How wonderful of a social welfare!! Also if this government is to continue on its path of Indirect Taxation, then before the end of their five years, the lines of homeless people in downtown Kingston along King Street, before the Supreme Court and the Court of Appeal daily, will get about fifty times (50) longer. That is, all their earthly possessions will be sold by financial institutions and put them on the streets.

In all Indirect Taxation is well known to be the unfair form of taxation. In any economy it will undoubtedly have a devastating effect on the poor and the unemployed, if no systems are in place to protect these vulnerable groups of people in the society. In Jamaica there are no such macro-economic systems in place to protect the poor and the unemployed from it. Hence it is not applicable in the context of the Jamaican society and it will only further destroy the poor and the unemployed more. It will undoubtedly push up the crime rate as these people may not not have any other alternative than to turn to criminality for survival.

My recommendation to the government is to leave the tax threshold alone now! By no means the people who earn more than $1M per year are the; poor, poorest or neediest in the Jamaican society. They can afford to pay a little of fair direct taxes and survive. This is to prevent you from imposing any more Indirect Taxes on the poor and the unemployed to further destroy them. Appologising to the people of Jamaica for not giving the full election promise now is the respectable and honourable way of life. For reasons of giving priority attention to the poor, unemployed and the reduction of crime. All three related issues. No one can hate the government for that. Otherwise, if proceed with more Indirect taxes it will be labelled as the worst government in Jamaica, that has no regard for the poor and the unemployed.

Written by; Silvera Adjudah - qualified and experienced Educator.