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News
February 28, 2016

ONLINE READERS COMMENT: How will the JLP implement these promises?

Dear Editor,

While, for the sake for the country at least, we would all wish the best for the Jamaica Labour Party (JLP), now that it has been returned to government, I must admit that I am worrying. The JLP promised a lot of things that will not be cheap or easy.  How will this new JLP government fulfil these promises?

Perhaps the most immediate promise made by the JLP is to raise the income tax threshold to $1.5 million for people who now earn that and below.

In addition to not hearing anything credible as to where the replacement taxes will come from, how will the new government address the inequities that will result between those earning between $1.5 and $1.8 million on the one hand and those earning less than $1.5 million?

As a direct result of this income tax plan, how will the JLP encourage greater worker output while at the same time discouraging workers who earn below $1.5 million from wanting to do overtime or seek a promotion, which will result in them taking home less pay?

With the increase in this tax-free threshold, more workers will have more money to spend. Yet, at the same time, the economy is not growing and there is no increased production. With more money to spend, how will the JLP prevent an increase in inflation?

The JLP has also promised to raise the minimum wage significantly. A lot of small business owners now have workers who are being paid below the planned new minimum wage. Many of these business owners are already struggling to keep these workers. How does the JLP plan to enable these business owners to keep these workers if they cannot pay them the increased wages?

The JLP promised to create 250,000 new jobs if it wins the elections. That is 50,000 jobs a year. Now that it has won, how does it plan to fulfil this promise in an economy that has been stagnant now for over thirty years? Will these be crash work jobs?

The new JLP government also plans to give up other taxes, while at the same is vowing not to increase others. At the same time, it plans to remove school fees. How does the JLP plan to make up for the shortfall for these schools, seeing that most of them are already struggling with what they now have?

Indeed, how will it pay for the many other services, like health care, road works and the lot if, as it promised, it will give up these taxes but not raise new ones in an fiscal arrangement that is already very tight for the government?

I really can’t see the new JLP government fulfilling these promises without giving up something. Either it will have to borrow more or spend less in other areas. Either way, we are in for some very challenging times ahead.

Michael A Dingwall.

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