£1,100-a-head tax hit for all

TAXPAYERS could each pay an extra £1,155 a year under options being considered to plug a shock £52m. annual gap in States finances.
Treasury announced the bombshell today as it looks at ways to fill a new black hole brought on by the faltering economy.
Several options will be investigated between now and the end of the year with minister Charles Parkinson insisting that savings will also be made.
Possibilities include putting an extra 1% on income tax to bring in another £10m. a year, introducing a goods and services tax, which could raise £40m. a year if it was set at 3% - the same as in Jersey - or doubling property tax to raise £12m. a year.
Businesses could also be targeted.
The news comes on the day Treasury set out a £300m. wish-list of major projects departments want to pursue and the need to borrow £175m. to make them happen.
Deputy Parkinson stressed the latest deficit had nothing to do with the department’s decision to back borrowing.
The shortfall caused by the introduction of zero-10 is still anticipated to be between £35m. and £40m. a year, but the department’s consultants predict a further cyclical deficit of £25m. to £30m. a year as a result of global economic conditions.
(from thisisguernsey)


The Black Hole is taking its toll..... TAX TAX and more TAX

the only shock surely must be that it is a shock!!!! I along with most people on the island are not 'experts' but having run a household for 45+ years I long ago realised that the incomings and outgoings must match otherwise there is trouble in store....nothing clever in that at all - the shock being that our 'experts' did not really take this as part of the 0/10 equasion.......

Someone's maths is a bit off there, will be £2000 plus per year for each taxpayer.

.................and counting I suspect!!!!

Found this on my wanderings.....I found it interesting

http://www.scrutiny.gov.je/documents/evidence/26300-23135-2552005.pdf

Well the TRP bit is no suprise I mentioned on the old WG forum when TRP on businesses went up 300-400% that they were likely to double the domestic TRP a year or 2 later.

I know lots of self emplyed people that used to pay a lot of income tax but because of the global crisis will probably pay nothing this year, the deficit will probably be a lot worse than what they expect, so we can look forward to even more brainwaves on how they are going to extract a little more blood from us all.

karma wrote:Found this on my wanderings.....I found it interesting

[url=http://www.scrutiny.gov.je/documents/evidence/26300-23135-2552005.pdf

http://www.scrutiny.gov.je/documents/evidence/26300-23135-2552005.pdf[/quote[/url]]

Well ferreted out Karma.I thought "CREATIVE" accounting got us into this mess

HaHa I was interested to see that was in 2005 ...... seems a bit like 'figure fixing' to me

:x

i see our beloved chief minister is refusing to make a statement on the mess we are in. :Bolt1: :thistle 1:

You have to feel sorry for Charles Parkinson - he's the messenger and he is going to get shot big time for something that isn't his fault.

Why don't they just up the tax rate by 2 or 3% instead of everything else - it hits all

While we don't want to have to pay anything extra - if we must then spread it around by the tax rate.

GST would be a big mistake and won't solve much at all - that is definately not the way to go.

at least a tax rate rise would be even and not just aimed at certain aspects of society.

maybe they should tax the rich a lot more by introducing a higher rate of tax for them.

I agree with that, an extra 3% on those who earn more than £30,000

i wouldnt call 30k a year "rich"

by the way, has CP said anymore about lowering the tax cap from 250k to 100k.

thought that was a done deal already

EDDIE
"I wouldnt call 30k a year "rich""



Neither do I, but its pointless just going for just the top 5% as it would not bring in the funds needed,

I think most of us need to help out but the lowest paid should be spared

What i find incredible is they say they had no idea there was a risk of a huge financial down-turn with all the so called experts . I was told seven years ago that this down-turn it was inevitable .

On the extra tax issue they may be in for a shock as people can only give what they have and no more , i have said this before i will tell the office a work to just send my salary to C/O States Of Guernsey, who needs to live eh.

NEW TAXES OUTRAGE ISLANDERS



"Islanders are fuming after finding out they're likely to face new taxes….
Island FM studios were flooded with texts and calls this morning from
islanders outraged to hear the tax black hole's going to be even
bigger. With the introduction of 0-10 they were expecting an annual tax
shortfall of around 40 million pounds. Now with the economic downturn
it's looking more like 65 million. According to Treasury minister
Charles Parkinson that won't just mean raising taxes but bringing in
new ones. Some of the options already suggested include a GST or
scrapping relief on mortgage interest"

taken from cable and wireless website thank you

Is this the same States who announced about 6 months ago that the Black Hole was now considered to be Grey??? and congratulated themselves on how successfully 0/10 had panned out? and told us that they had more than expected in the kitty to cover future spending?????? Or have I just popped out from the other side of the looking glass? I think these self serving individuals would be wise to remember the French Revolution - why it started and the consquences.....this information was leaked on purpose in my opinion to prepare us - which probably means it's worse than they are saying!!!!! and is even more scary!!!!

Oh well good job that

"There are boats and planes everday"

:)

Not sure what you mean Chok!!!!

I see that the states have just purchased 2 aircraft at a cost of almost $40m just when things are getting a bit tight.

They will say it was a bargain ....I don't know with ships & planes we are a the forefront don't know quite at what ...Lookout Richard Branson here comes Guernsey. :)

i wouldn,t take what CDJ has said ti heart karma mate.you are the one living here and not him.seems he got a boat or plane a long time ago.

I didn't - I just wondered how long it took to think up that particularly 'smart-ass' reply....in between pondering on abortion, gays, drugs and porn!!!!

Is this just scaremongering by Deputy Parkinson? Tell us that we all need to pay an extra £1,100 per head in tax and after the public outcry announce a reduced figure of, say £400, so that we are 'led down the garden path' and convinced into believing that we have "saved" £700 when in reality we have had to pay out the £400?

A recent example of this tactic was the increased charges for mooring fees in St Peter Port Harbour, announce high additional charges initially then appear to withdraw and reduce the costs - but still charge you more overall!!

"Baldrick, I have a cunning plan..................." The whole mess smells of a Blackaddder farce, or am I just a cynic?? :scratch: