Government Urged: Combine 4% Sales Tax With Spending Cuts
The Government should implement a 4 per cent sales tax and target a 3 per cent spending reduction as an alternative to Value-Added Tax (VAT), a senior accountant has urged.
Ronald Atkinson, in a presentation to a seminar organised by the Nassau Institute, warned that the Government’s present tax reform course was “alienating” the business community and would lead to “passive resistance”.
He added that with less money circulating in the economy as a result of VAT, and the business community being alienated by the Government’s actions towards tax reform, the Christie administration would not realise the $200 million increase in annual revenue it was anticipating.
“People no longer have the available cash they used to have. The liquidity is dropping within the economy, the amount of available cash is dropping, and they are simply not going to collect the money that they expect. What they are doing is alienating the business community,” said Mr Atkinson.
He warned: “If you alienate the business community, what you are going to get is what is known as passive resistance. That is, there is going to be a passive resistance to paying.business, economy, financial, taxes, VAT