Author Topic: Jersey’s black hole is getting deeper  (Read 2247 times)

Offline danrok

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Jersey’s black hole is getting deeper
« on: September 05, 2012, 06:37:11 AM »
When Jersey first planned to move to a zero percent corporation tax system, with funds lost being replaced by a sales tax equivalent to VAT I predicted two things relevant to what follows.

The first was that the fiance industry would not grow at anything like the rate Jersey then forecast. That growth forecast was critical to filling the tax gap Jersey intentionally created.

Second, I predicted as a result that the new sales tax – called GST – would be charged at much higher rates than the 3%  first proposed. Indeed a few of us had a wager on what it would be a decade later – my forecast being 12.5%. This, I said, would be necessary to fill what I called a ‘black hole’ in Jersey’s finance, which it was easy to predict would reach £100 million a year.

The rest is here:

Will GST double in the next few years?

Is Jersey's economy in dire straits?

Do you trust the Jersey Treasury?

Offline man in the street

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Re: Jersey’s black hole is getting deeper
« Reply #1 on: September 05, 2012, 03:00:11 PM »
 gst /up as they clutch at straws.
economy/  i fear for our economy( i am busy at the moment  but  expect a downturn)
  the treasury/  no trust whatsoever, imho  there is much  the public are not told .
 to quote  someone  i have forgotten " show me the money"

Offline Chevalier Blanc

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Re: Jersey’s black hole is getting deeper
« Reply #2 on: September 06, 2012, 03:07:18 PM »
Which one can you not believe?
The treasury or the minister?
Well i do not trust both of them because the treasury keeps his mouth shut to save his job and the minister ozouf just does not know what he is doing and just lies all the time. He just plays at having power.

Offline man in the street

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Re: Jersey’s black hole is getting deeper
« Reply #3 on: September 06, 2012, 10:43:28 PM »
 none of them cb.
 now big chris has gone,  there must be no one looking at whats going on at all.

Offline boatyboy

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Re: Jersey’s black hole is getting deeper
« Reply #4 on: April 09, 2013, 03:36:47 PM »

At the very least, Jersey looks solvent with enough cash to pay the wages for a year.

The writing is in big letters on the wall, keep the spend and tax more policy to further the islands financial demise.
Europe is broke and of no help to Jersey.

Yahoo Finance. UK and Ireland.

Yet the political upset in Portugal has once again exposed the fragility of the eurozone as depression grinds on across the South, and austerity fatigue turns to anger.

Italy still has no new government six weeks after voters repudiated

EU policies in an election in February, while Cyprus is in shock after EU creditor states imposed huge losses on bondholders at its two largest banks.

The Cypriot government revealed on Monday that it no longer has enough money in its reserve fund to pay salaries in April, warning that it needs fresh help to “avoid a default” on €75m by the end of the month.

We now learn that the taboo against wages cuts in so strong in Portugal that such a policy is effectively unconstitutional. Juridico-politics have intruded rudely against those in Brussels and Berlin who think they can command whole societies like so many pawns on a chess board.



Offline Lokel_Yokel

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Re: Jersey’s black hole is getting deeper
« Reply #5 on: May 06, 2013, 04:44:21 PM »
My guess is that the personal income tax take is down in recent years, as people earn less and also as those who paid good tax leave for pastures new.

Although I don't like paying GST (or any tax!) I have nothing against a consumption tax on principle and in practice it is a good way to raise cash. I would raise it to 15%!!, but zero rate food, clothing and utilities. In addition I would start talking to the EU about getting into the VAT system (same as the IOM) but for that would need a rate at least as high as the EU average.

Whilst I agree that the finance sector does need protecting and that does create a problem when having to create an accross the board tax system (i.e. same for locals and foreigners) I doubt if it is beyond the wit of man to come up with something that does not give a foreign owned company trading in Jersey a 20% tax advantage over locals, even if that is via the rates system or from creating special fees.
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