Jamaica Gleaner
Published: Friday | February 27, 2009
Home : Letters
Revise the tax structure
The Editor, Sir:

A progressive tax structure can pay for free health and education.

Can we afford it? That's the perennial response to every piece of progressive social legislation, including both health and education it seems.

Can we afford PATH? Can we afford a secondary education (of some sort) for all? Can we afford a subsidised university education? Can we afford the National Health Fund and Jamaica Drugs for the Elderly Programme? Probably not. Could we afford the Operation Pride, the Rural Electrification Programme, piped water into homes, redundancy pay, maternity leave, or even Independence and Emancipation?

There is never a right time for anything, it seems. So better not to offer it rather than offer it 'free' and see the quality deteriorate. Is there no way out?

Yes, the reintroduction of a progressive tax structure rather than a cumbersome means test. Revenue from direct tax is woefully low, as it was designed to be since the neoliberal ascendancy of post-1980 shifted the burden to regressive taxes such as general consumption tax. But there is no better way of affording essential services than taxing those who can afford to pay, which includes the many who opt out into the quaintly named informal sector.

There is no need to pay then at the point of delivery. And if the better off decide to opt out to private education and health services, then by all means provide them with some level of tax relief based on proven expenses.

Jamaica (if not the Government at this point in time) can afford health and education services for all.

I am, etc.,

PAUL WARD

pgward@cwjamaica.com

Box 43

Kingston 7

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