Wed | Feb 19, 2020

1.5 to 2.5 and five in four to six in eight?

Published:Friday | January 24, 2020 | 12:38 AM


The Andrew Holness administration fulfilled their commitment of the 1.5 income tax plan. In their quest of fully going to indirect taxation, will they give another general election commitment by giving the nation a 2.5 income tax plan. Which means you won’t contribute to PAYE if you work under $2.5 million.

This time around, they will have more experience in explaining how they will fund such commitment than in 2016.

April of this year will be the government’s fourth annual Budget presentation and I can sadly say we haven’t fulfilled the commitment of five per cent growth in four years.

Upgrade optimistic growth forecast

Hence, the Andrew Holness administration will have to upgrade their optimistic growth forecast and ask the voters to trust them this time around.

I believe six per cent growth in eight years is reasonable.

Meaning, it would be a continuation of five in four but this would be a phase three, which means we should expect six per cent growth by 2024 instead of five per cent growth in 2020. I hope Finance Minister Dr Nigel Clarke responds publicly to my suggestion of a second phase of 2.5 and how he will counteract the narrative of missing the five in four growth plan.