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Sep 12, 2012

Economic Indicators: show high unemployment for households

Let’s face it: There is high unemployment and for households across the country, the joblessness is further aggravated by the high cost of living. The cost of a daily basket of goods from chicken and fish to beans, cheese and eggs, is sky high. Now, let’s factor in ‘Income Tax; Those who make less than twenty-six thousand dollars per annum are exempt from paying the income tax, but those earning more pay a whopping twenty-five percent. With this backdrop and the dire economic scenario:  Should Belize abolish the Income Tax?  Consider the following:  There are one hundred and forty-eight thousand, ninety-three persons in the labor force of which, according to the Income Tax department, only seven thousand, nine hundred and six are earning above the twenty-six thousand dollar threshold. This means that one hundred and forty thousand, one hundred and eighty-seven do not pay any income tax and that only five percent of the work force is being taxed. Those that are taxed earn in aggregate about three hundred and thirty-seven million dollars and contribute forty-three million dollars per annum to the government coffers. Government uses the money to pay the salaries of politicians, their transportation and fuel, and other perks. It also pays for a host of other expenses for the running of the country.

 

If you are one of those persons with stagnant wages and you are paying income tax, you will have little left after you buy food and pay your bills. You may also think there is little motivation to earn more, since the harder you work to earn more, the more you are taxed. It may not be unreasonable to argue that the weight of the income tax is punishing hard working Belizeans and that in fact tax assessments are putting many out of business. So business falters, employment suffers and people are left out in the cold. Many believe that the system would be better off without income tax and that it would be best to implement a more equitable tax system. In other words, on what basis do those who earn more need to pay more? And why should only a small percent be so heavily taxed? You be the judge.


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6 Responses for “Economic Indicators: show high unemployment for households”

  1. Storm says:

    What percentage of jobs in the Jewel are taken by foreigners, especially those who are here illegally?

    Reverse that situation, and home-grown Belizeans will begin to have a little economic hope. I realize times are hard all around, but charity begins at home.

    Belizean jobs for Belizeans.

  2. Rod says:

    People wa the starve with this pm and gov watch out now people you will be shot for food now especially the grocers unu Betta watch unu self half of all belizeans can’t even feed the self due to the lack of jobs due to the total collapse of belize under this corrupt and incompetent pn and gov. Now tha the time fu march tha the pm house people this tha the cause unu fu march fa no. Foolishness like 10th march fu unu future for the future of your children march fu jobs march fu security these are the things to march for .

  3. Case P says:

    We definitely need a more equitable tax system.

    It is not sustainable to use the taxes of such a small percentage of the population. Our leaders have seemed to failed at every economic junction our little country has come across. I swear do hope that the next generation of leaders are the right people, they have vision, and most importantly that there are properly educated.

    Until then, God save us all

  4. Initiate! says:

    Excellent last question there: “on what basis do those who earn more need to pay more? And why should only a small percent be so heavily taxed?.”

  5. Bart says:

    Yes I make more than 26,000 per annum but what the Gov. doesn’t realize is by the time I pay my Mortgage and educate my children I end up way below the threshold. Many factors are not placed where income tax is concerned….In-fact who comes up with these tax laws? Ridiculous!! This aggravates me every time i collect my salary….Mr. PM U are not in my shoe so u don’t worry..u got your Millions..probably tax free….nuff said!!!

  6. Liberty and Freedom says:

    Welcome to the New World Order. This is not a unique situation to Belize. The “haves” are paying for the “have nots”. It is called class warfare. As to the really stupid comment about jobs taken by foreigners – they are paying taxes because most of them earn more than $26,000 per year. They also provide jobs for Belizeans. Just look around and find out how many foreign investors and companies there are in Belize. This is a country of foreigners – Lebanese, Chinese, El Salvadorans, Hondurans, Guatemalans, Mennonites, Canadians, Brits, Americans, etc.
    Perhaps we should have the same system as the USA – 46% of Americans receive a government check; the other 54% pay for these slugs to sit on their fat @$$#$ and do nothing. In Belize, if you do not work you do not eat. Oh, there is a lot of theft because the slugs would rather steal than work. Stop the class warfare and point the finger at the GOB. They are doing little to bring in foreign invesatment and end corruption and crime.

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