Entrepreneur Yves Ephraim has suggested that government “slash tax rates by 50 per cent” in order to put more disposable income into the pockets of the middle class that drives the economy.
“The worst case scenario is that instead of getting million in taxes you get million. So now we need million to make up the deficit,” the owner of Pegasus Technologies said.
He recommended that the shortfall could be made up through fines for offenses such as littering and traffic violations. This he said would also serve to change “behaviours for the better.”
The businessman added, “If we follow this methodology of slashing taxes you have a situation where someone making ,500 could actually have extra a month. I see it as an incentive.”
He explained that such an initiative would in turn drive other measures such as Construct Antigua that relies heavily on the middle class having confidence to spend, buy new vehicles and hire help. “So it has a snowballing effect,” Ephraim said.
Ephraim added that parliamentarians who are exempt from some categories of taxes should be brought more into the net. He reasoned that they would “make them more thoughtful before they put in new taxes and because they should lead by example.”
He praised government for attempting to “ease” the business environment in the upcoming year by “turning the Inland Revenue into a one-stop-shop for payments,” “turning around things in Customs in 24 hours” and facilitating online applications for licenses.
(Source http://www.antiguaobserver.com/?p=68455)
