Guernsey Press

Income tax could be put into bands to raise revenue

PERHAPS someone can explain why income tax contributions can’t be banded in the same way as other jurisdictions?

Published

For example, 19% up to £20k per year (after tax allowance), 20% up to £37k per year (median wage?), and 1% more taxation for each extra £37k income per annum to a maximum of 25% in the top band.

Surely this would raise revenue from the higher earners without being unfair.

Even if this proposal was accepted a lot of high earners would certainly pay a lot less tax here than in most other jurisdictions.

Also residents of working age who, by choice, decide to not work should have their non-employed contributions doubled to encourage a return to the workplace or to raise more revenue.

Either the States of Guernsey correctly adjusts zero-10 corporation tax to an acceptable level or all the above median wage earners pay more in tax. The island’s future generations cannot afford for neither to be implemented very soon.

Perhaps these proposals should have been included in the States of Guernsey Tax Review as an option?

STEVE FOSS