Any respectable tax system must be fair and ours isn’t

So it appears that ‘difficult’ decisions will need to be made in order to sustain public services in the future, due to the States running out of money?

This all too familiar soundbite is now wearing a bit thin. Who isn’t fed up with these ‘warnings’, which are doubtless preparing us for the prospect of increased taxes or additional taxes being introduced to cover deficits?

Whilst the States accounts show a surplus, one must wonder why we are being subjected to this. In all likelihood, it isn’t just public services that are the issue here – more plausibly, it is a ‘hidden agenda’ of funding capital expenditure on future illustrious States projects. Old habits die hard, eh?

One would therefore hope that in light of this ‘impending doom and gloom’, all States members and civil servants alike would be looking for ways to economise in preparation. However we all know how painful this process is, so let’s not get our hopes up just yet.

One wonders, why, in the face of all this, our States still maintain a tax cap of £260,000 on personal income?

The following questions must be asked:

a) Unlike us lesser mortals, how many people in Guernsey pay less than the 20% on taxable income, as a result of directly benefiting from this cap?

b) How many hundreds of thousands – nay, millions of pounds – are ‘lost’ each year as a result of this cap being implemented?

c) How many individuals pay as little as 1-2% on their total income as a direct consequence of the advantages afforded them by the tax authority each year?

It may interest you to know that in ancient Greece, it was indeed an honour to pay taxes. The more tax you paid, the higher you were elevated in society. Fast forward to today and the notion of social standing is apparently now based on your Instagram, TikTok and Facebook followers, whilst the rich now hide in the shadows (under the protection of governments) moving heaven and earth to protect their wealth. What a difference.

Now, I am certainly not suggesting that the high earners start paying a higher percentage rate of tax, as in the UK for example – that system is flawed and counter productive. No, the wealthy should simply be paying their way, the same way as the rest of us... at the rate of 20%.

Any respectable tax system must be fair and ours clearly is not.

Get this rectified and put the house in order. Then, if needs be, talk to us about shortfalls and all manner of monetary ills – but not before.

MERCER TILL