Life or Debt?

I predicted an overt attack on the middle-class coming out of the budget, but clearly the government was more prudent and covert with its fiscal policies. So, instead of sticking it to the common man with increased VAT and gasoline, the People’s National Movement increased income taxes on the 50 people in the country with a monthly salary in excess of $83,000, while at the same time implementing something similar for companies with profits in excess of $1 million.

The government predicts $560 million in tax revenue from these measures, but when salaries suddenly decrease on paper with the rest being paid under the table, we’ll measure this revenue in a year’s time. Don’t be fooled though, this outward ‘strict’ taxation measure for their financiers would be offset when they are awarded lucrative state contracts (construction and security) and tenancy agreements for all sorts of government ministries; and then the pervasiveness of unethical government workers will perpetuate the embezzlement of state funds by these same business people.

I hope Trinbagonians are taking note of this nonsense. This ‘millionaire tax’ is a sham because this can and will be easily circumvented.

If the government was at all interested in taxing the higher income earners to increase the country’s revenue stream, the bracket would have started with those at a monthly income of around $30- 40,000, which would of course affect government Ministers themselves; and the tax-dodging President and Judges would be made to contribute to the economy.

The President made it clear that he’s not a robot (in which case he would be exempt), so since he’s a living, breathing human being, his taxes are just as important. In stark contrast is the reality of Her Majesty the Queen, since 1993, paying taxes on her income, with a basic salary that now stands at ?37.9 million; and US President Barack Obama who paid US$81,472 in federal taxes in 2015. What’s even more interesting is the fact that the Queen insisted that her income be taxed and President Obama willingly placed himself in a higher tax bracket because of his own tax policies; do you see the difference between them and our blood-sucking politicians? As Donald Trump would say: it is “smart” to avoid taxes, so I guess that makes the President and Judges uber-smart.

Furthermore, like a broken record, self-employed people in this country continue to enjoy their tax free incomes because of a National Insurance Board that is as useless as a bucket without a bottom. So instead of fixing the system once and for all, another wool-pulling exercise is put into effect, a la the budget.

The seven-percent tariff for online purchases brought in by a courier company is purported to be a strategy to “assist local industry”; something designed to force us to buy local, while the President imports wine emblazoned with our national Coat-of-Arms directly from Italy instead of patronising a local business. The President’s response was the same as ours: ie, importing is cheaper and the quality is expected to be better; but when we say it, it’s unpatriotic. The hypocrisy makes my skin itch! So the non-tax-paying President is allowed to ‘duck’ his patriotic obligation as the ceremonial head of our country, while the rest of us are forced to pay more money to the greedy, price-gouging business owners, who will no doubt exploit this situation. So who really benefits from this policy, eh? I lived in London where I had to pay a tax just to have a television in my house, so I would never complain about the re-introduction of property tax, but I fear the impact of these things on my compatriots.

Trinidad and Tobago is in a lot of debt - $88.9 billion according to the Minister of Finance. The government is in a tough spot; we know this. I understand the basis for increasing diesel, but all food delivery vehicles use diesel, and we all know that companies would not absorb that extra cost. Maxi taxis use diesel, so from Monday morning, commuters will feel the pinch and who can blame the drivers? After all is said and done, it is us in the society who will continue living a life with mounting debt, increasing prices and stagnant salaries.

Only non-rich citizens will continue living a life to work in order to manage debt. I’m sympathetic to the government’s difficult position, but these policies associated with the budget allows for the rich to get richer and the poor to get even poorer.