The Editor
The Anguillian

INCOME TAX FOR ANGUILLA?
By Haydn Hughes

Over the years we’ve all heard the term, “Income tax” float around this island. It is well known that income tax is quite foreign to Anguillians who have lived here all their lives. However, those Anguillians who would have migrated to the US and UK in the 30s and 40s are more than a little familiar with the concept of “Income Tax”.

Since their return to the island, these individuals have been confronted with the reality that the standard of living in Anguilla now is much higher than the countries they had migrated to. Despite this realisation, these same individuals have embarked on a mission to use their influence to find ways to reduce the standard of living for all young Anguillians.

My ears peeked with interest on Tuesday 13th, February as I listened to the proceedings of the town hall meeting, hosted by the Government of Anguilla, in West End. There, one of the leading members of the West End community asked the Chief Minister and I quote, “When are we going to have income taxes to help this country?” The question was totally out of context and it is my firm belief that it was planned. The Chief Minister pounced on the question with the zeal of a lion closing in on its prey after a long hunt. He indicated that the British Government had been asking the same question. On the other hand, the Chief Minister’s deputy, the Minister of Finance, took the opportunity to introduce the government’s intention to implement a national health insurance plan that will be collected by Social Security.

At this point I couldn’t help but reminisce about the many things this same government promised to implement in an effort to enhance our social well being. Things such as:
1. Constitutional reform
2. A minimum wage and
3. Social reconstruction
To this date, none of the above has transpired and the possibility of them materializing, again, diminishes daily. I guess we will have to wait for the 2009 campaign trail to hear about them again from the lips of the elected government and others challenging for political power.

Nevertheless, back to the matter at hand. Where did income tax come from?
Income Tax was announced in Britain in 1798, and introduced in 1799, as a means of paying for the war against the French forces under Napoleon. France was threatening to invade, and had already landed briefly in Wales and Ireland. For much of his campaigns Napoleon was better organised than the British forces. The cost of war had drained Britain’s resources and run up a considerable national debt. The army was starving and poor conditions in the navy in 1797 had led to mutiny. ‘Certain duties upon income’, as outlined in the Act of 1799, were to be the temporary solution, but they remained. THEY
BECAME PERMANENT!

In the United States, income taxes were introduced in 1862 to pay for the civil war effort. The Act of 1862 established the office of Commissioner of Internal Revenue. The Commissioner was given the power to assess, levy, and collect taxes, and the right to enforce the tax laws through seizure of property and income and through prosecution. The powers and authority remain very much the same today.

Bearing the history of income tax in mind, I ask, “Which war is being waged in Anguilla to justify the introduction of income tax?”

“Is it really necessary?” “How would its introduction impact us - “the residents of Anguilla?”

Levying a tax on our income would mean that our buying power will automatically be reduced. The only way to prevent this is to do the following:
1. Introduce a fair minimum wage of not less than US$6.00, EC$16.00 per hour.
2. Legislate a cost of living increase of not less than 85% of the cost of living increase per year to offset the rising cost of living.
3. Repeal import duties on all items. (Prices of all goods should see significant reductions at the stores because the importers would not have to pay this high cost any longer.)
If such measures are put into effect, the issue of income tax might become ‘acceptable‘ but we cannot squeeze juice out of a stone. If the Government of Anguilla would be so callous as to go ahead and introduce such a tax without eradicating duties, then the people of Anguilla will indeed face even more hardships.

I was happy to hear the Chief Minister say that he is revisiting the salaries given to civil servants as a means of stemming the brain drain the Government of Anguilla is currently experiencing. I would only hope that this revision is across the board, and not merely reserved for the top earning civil servants. This same policy should encompass all of Anguilla - civil servants (top and bottom) and private sector workers, including those in the hospitality industry. This wide scope is necessary because addressing only the salaries of the top-earning people will undoubtedly result in a society of haves and have-nots, rich classes and poor classes, earners and strugglers. This in turn will result in many more social issues such as drug use, robberies and other violent acts.

I implore the Government of Anguilla to sit down with the people and discuss the matter of “Income Tax” openly and properly. Let the people be a part of the planning process. It is about time we realize that we cannot continue doing things in Anguilla haphazardly as the consequences are already proving to have dire consequences.

| Printer-friendly page | Send this article to a friend |

World News