Premier: UBP tax cut is 'unwise'
Government claims the Opposition's plans for universal payroll tax relief for those earning less than $42,000 would be "impractical, unaffordable and unwise".
Premier Dr. Ewart Brown yesterday said the PLP had already explored the feasibility of introducing "across-the-board" payroll tax relief but had concluded it was "a bad idea".
The UBP made the pledge during the unveiling of the Party's election platform on Monday. Shadow Finance Minister Patricia Gordon-Pamplin said the Party planned to abolish payroll tax for those earning less than $42,000.
"If you earn $800 per week, you will have an extra $1,975 per year in your pocket. Those earning $600 per week, will get an extra $1,482 — again, that's almost two-and-a-half weeks pay extra," she said.
During a meeting of the Sandys Rotary Club last night however, guest speaker Dr. Brown said: "In our (Government's) first meeting of the Council of Economic Advisors, we asked the question, 'How do you relieve the stress on the family that results from Bermudians holding multiple jobs?'
"One of the responses was tax relief — across-the-board payroll tax relief, as proposed by the Opposition.
"We came to the conclusion that blanket, across-the-board payroll tax relief for everyone is a bad idea.
"It is Bermudian working families that need relief, and that is where a PLP Government will give relief. We have to face the disparity being experienced by Bermudian working families and we must remedy it.
"Considering the current plight of our families, it is impractical, unaffordable, and unwise to give the same tax cut to a 19-year-old making $40,000 while living with her wealthy parents, as we give to a Bermudian mother-of-four making $40,000 living in a rental apartment.
"It is impractical, unaffordable and unwise to give the same tax cut to the 30-year-old single guest worker — most of whose income immediately leaves Bermuda — as we give to that Bermudian mother-of-four. An across-the-board payroll tax cut is a misguided, uninformed idea.
"We care about everyone in Bermuda, including our wealthy citizens and our guest workers, but it is that Bermudian mother who needs our focused attention right now."
