The idea is being put forward in an amendment from Deputy Andy Sloan to this week’s big tax debate. He argues that if taxation is to be related to people’s ability to pay, then the income tax system must recognise all of the costs involved in raising children.
Yesterday evening, the Policy & Resources Committee announced that it would be supporting the amendment, which greatly increases its chances of success.
Guernsey used to have similar tax allowances until the 1980s when they were scrapped and the money diverted to family allowances instead. The argument at the time was that this would ensure that families earning less than the income tax threshold would not lose out.
P&R members have also announced their stance on all of the other 21 amendments lodged to their tax proposals. They oppose the vast majority of them but they do support three other amendments. Two are from former P&R member Deputy Gavin St Pier. The first is to ensure that the mitigations introduced as part of the tax package are increased by at least RPIX each year. The second is for the role of social security contributions within Guernsey’s fiscal policy to be fully considered as part of a planned further tax review.
The last amendment P&R will be supporting is from Deputy Hayley Camp, to set up a mechanism whereby the States is kept informed of the savings programme and how it is progressing.
As well as those amendments which they are supporting, there are also four which P&R describe themselves as ‘not opposing’. The most significant of these is a three-year, real terms, States’ spending freeze across both general revenue and contributory benefits such as the States pension and long term care benefit, which is also being put forward by Deputy Sloan.
P&R will definitely be opposing a delaying motion from Deputy Liam McKenna, and the same deputy’s call for a referendum on GST.
Deputy David Goy will face opposition from the States’ top committee on all five of his amendments, as will Deputy Tina Bury on her call for wealth taxes to be examined.
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