Tax reform is necessary and has to be approached with caution — Minister of Finance Gibson.

richardgibson13092016PHILIPSBURG:— Tax Reform is necessary. Responsible tax reform has to be approached with caution and with the necessary care. You cannot gamble with tax reform. The results have to be calculated in advance using actuary expertise to avoid unforeseen consequences. The result of the steps that will be taken has to be known up front. It cannot be done on a trial basis. That would be irresponsible and could cause misery for a lot of people.

Wild ideas that tax reform should consist only of flat taxes or only indirect taxes – as has been proposed by some – and elimination of the progressive factor in taxes, are ideas that will burden the less fortunate in our community substantially more than high-income earners. It will represent a bonanza of a tax break to high-income earners, who with this approach will be paying the same tax rate as low-income earners.

I am a proponent of lower taxes, more indirect taxes and a broadening of the tax base. Tax reform should include lowering of income tax rates, lowering of profit tax rates, in combination with more indirect taxes. I am not in favor of replacing all taxes with only a flat tax or only indirect taxes. That would be unfair to the majority of taxpayers in our country and will not be entertained under my watch.

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Finance Minister Richard F. Gibson

Source: St. Martin News Network
Tax reform is necessary and has to be approached with caution — Minister of Finance Gibson.

1 COMMENT

  1. Ok great. But we need to get tax reform done one way or the other. The present system is broke and is causing major disruption in the market place (some paying, most are not) and as a result businesses are moving elsewhere or even closing shop all together.

    Min Gibson, you cannot afford to conduct study after study and still do nothing. Many studies have been done (check Bearing Point / Taxand studies) and those conclude the same as you are saying (more indirect, broadening of tax base, lower income & profit tax and no more TOT), so let’s START THE REFORM ALREADY!!

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