At the heart of his solution to the black hole in the States’ accounts is an entirely new system of taxation which he calls a Productivity Incentivisation Tax, or PIT.
The first-term States member said he was not quite ready to disclose the full details of his proposed scheme while he awaits answers to questions he has posed to the States Treasury, but he said it would reward people who were economically active or created local jobs, while being very hard to avoid through clever accounting. Deputy Goy said it would stop properties being used as ‘passive wealth storage’.
The new taxation system is one prong of a three-pronged approach which Deputy Goy is promoting to resolve the predicted shortfall in public revenues. The second is actively pursuing investment and business in the East and south-east Asia, which he described as the most dynamic economic regions on earth.
The third strand of his strategy is what he calls genuine fiscal discipline.
‘Before we even talk about new taxes, we must fix the “money leak” in the States’ spending. We need the States to publish key performance indicators for every financially significant project in one central, public, dashboard. If the public can’t track progress, we can’t stop multi-million-pound failures,' he said.
Deputy Goy has said he will continue to oppose a goods and services tax.
‘Asking hard-working families to pay more to fund more of the same isn’t a solution – it’s an admission of failure,’ he said.
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