January 3, 2010
Tax misunderstanding
Dear Editor,
I was under the impression that a “progressive tax system” by definition taxed income based on the tax bracket it fell in.
This would mean that if I earned $12 million, my taxes would be calculated in 2010 as follows:
* First $5 million taxed at 25 per cent.
* $5 million to $10 million taxed at 27.5per cent.
* Income over $10 million taxed at 35 per cent.
I never once got the impression from the PM’s announcement that Jamaica was simply planning to tax all earnings at one rate since that is not what “progressive taxation” or “graduated income tax” means.
Based on recent articles and letters in the major newspapers, the prime minister obviously needs to clarify if this is what he meant.
David Mullings
david.mullings@gmail.com
