The 2017 budget

From page 12

implemented in the future. While people might treat it as another item of government expenditure, the labour force surveys that are planned for 2017 and beyond represent an important initiative in the fight against poverty. That exercise, along with the establishment of a Poverty Measurement and Analysis Unit in the Bureau of Statistics to understand and respond better to the situation of the poor assumes immense proportions and should not be downplayed by anyone. The elimination of poverty remains a major objective of the global community as reflected in the Sustainable Development Goals (SDGs) that are to be achieved by 2030. The promise of the ‘Good Life’ depends on it and Guyana must not lose sight of that objective.

Contradictions

In closing out this discussion on individuals, one should not lose sight also of the fact that the issue of burden shifting goes beyond the working poor. Another group of taxpayers, those in the middle, has been made to increase their share of the burden significantly. Under the old proportional tax system, persons earning between $180,000 and $200,000 would have paid between 17 to 18 per cent of their income in taxes. With the new system, their share of the burden would have risen significantly to 25 per cent. In contrast, persons whose income exceeds $500,000 will see a reduction in their burden from 28 to about 26 per cent of income. This is where tax policy becomes a question of reasonableness and the design of the tax system assumes great importance. Contradictions of the sort facing the workers in the middle drive people to appeal for equity and fairness in the tax policies and the tax system. The final part of this article will address this point and its implications for the business sector.

(To be continued)