Mr Sithanen: the MACRO-ECONOMIST!
- By Ben (guest)
- Published 24th November, 2007
What Mr Sithanen did is to play with the macro economics indicators at
the expense of the poor. While decreasing corporation tax, he expects
to bring more investment thus increasing the National Income. Where is
his sense of responsibility? I am an accountant in a company which
employs 80 people out of which 50 are paid a salary of not more than Rs
8,000, 25 are paid a salary within the range of Rs 8000-15000 and only
the 5 Managers/Asst managers receive a salary of more than Rs15000.
Can Mr Sithanen explains how these 50 people are better off with his
new income tax reforms?
They are most worsen off than any other people!
Under the previous government, the 50 people were exempted from tax and
were struggling to live a decent life.
With this regime, these people have to work odd hours and part time
jobs and still they have to struggle to SURVIVE.
Of course, they are still exempted from Tax, but what is worse is the
standard of living! The COLA is not reflecting the reality. The price
of all basic commodities
is rising daily. In certain cases, the prices
have doubled over 1 year.
The people earning between Rs 8000 - Rs 15000 is not better off. Most
of them did not have any taxable income prior to 2006 budget. But still
with the general price increase their life has become so miserable that
they have to do part time jobs to be able to feed their family.
Decreasing the corporate tax from 25% to 15% is just a gift to the big
companies. Companies making profits of Rs 500 millions yearly paying
10% tax less means Rs 50 millions less!!! What was the need to
decrease the tax rate so quickly and across the board? Different
companies could have paid different tax rate. Why should the banking
sector benefit from this tax reduction? I am not an economist but I
would opt for different tax rate for different economic sector/ company
category. This would have brought some money to the state and could
have been used to subsidies the price of milk, electricity, oil, gas,
etc.
I expect other economists to react to this article and express their
views and opinion and hope Mr Sithanen read this open letter.
the expense of the poor. While decreasing corporation tax, he expects
to bring more investment thus increasing the National Income. Where is
his sense of responsibility? I am an accountant in a company which
employs 80 people out of which 50 are paid a salary of not more than Rs
8,000, 25 are paid a salary within the range of Rs 8000-15000 and only
the 5 Managers/Asst managers receive a salary of more than Rs15000.
Can Mr Sithanen explains how these 50 people are better off with his
new income tax reforms?
They are most worsen off than any other people!
Under the previous government, the 50 people were exempted from tax and
were struggling to live a decent life.
With this regime, these people have to work odd hours and part time
jobs and still they have to struggle to SURVIVE.
Of course, they are still exempted from Tax, but what is worse is the
standard of living! The COLA is not reflecting the reality. The price
of all basic commodities
have doubled over 1 year.
The people earning between Rs 8000 - Rs 15000 is not better off. Most
of them did not have any taxable income prior to 2006 budget. But still
with the general price increase their life has become so miserable that
they have to do part time jobs to be able to feed their family.
Decreasing the corporate tax from 25% to 15% is just a gift to the big
companies. Companies making profits of Rs 500 millions yearly paying
10% tax less means Rs 50 millions less!!! What was the need to
decrease the tax rate so quickly and across the board? Different
companies could have paid different tax rate. Why should the banking
sector benefit from this tax reduction? I am not an economist but I
would opt for different tax rate for different economic sector/ company
category. This would have brought some money to the state and could
have been used to subsidies the price of milk, electricity, oil, gas,
etc.
I expect other economists to react to this article and express their
views and opinion and hope Mr Sithanen read this open letter.
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2 Responses to "Mr Sithanen: the MACRO-ECONOMIST!" 
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Insaf
said this on 06 Dec 2007 5:15:26 PM MUT
The idea of reducing the corporate tax rate to a flat 15% was borrowed from the neo-conservative blueprint of the right-wing economists. The flat tax has been on the agenda of the neo-cons for a long time, but has never been implemented even in the USA. Except in Ireland, all countries in the West have a rate higher than 15%. Tax cuts in the USA have not historically generated more economic growth. What it has done is that it gave more room to companies to distribute more dividends to shareholders. That's why economic growth in the capitalist countries has widened the gap between the poor and the wealthy. This is obvious even in countries like China, Russia and India. A rate of 15% without a capital gains tax or a wealth tax will create a super-rich class of people while the expected trickle-down effects will never reach the poor people. No wonder then that luxury cars are selling faster while poor people are going hungry. This is the kind of democratization the Labour Party is bringing about. More money for the rich to buy Aston Martins, but no basic commodities at reasonable prices for the population. And they dare call themselves socialists. It's turning logic on its head.
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Author/Admin)|
Cocasse
said this on 25 Nov 2007 9:05:44 AM MUT
Sorry to say whatever Government it will be the situation will never change unless we as a Nation say Enough is Enough and it's about time we really take things into our own hands and make Prior Decisions regarding our Brothers and Sisters who are on an everyday routine struggling to survive in this Corrupted and Hey This Is Not My Problem Attitude Society to really understand their Sufferings. Mauritius definitely need a Tsunami like Shake up for our People to really realise how deep in murky waters we really are and if we don't Educate The Masses Right Now it will be too late and when the day comes don't blame the People. Take care and hope for a Better Future for the Whole Of Our Beautiful Nation.
Cocasse. |
