Reform Jersey proposes Income Tax reform as part of States Budget in line with manifesto pledge
“We pledge to simplify our Income Tax system by moving to one tax calculation, reducing the marginal rate of tax by 1% and allowing all taxpayers to claim tax allowances. We will propose this change in the 2019 Budget.” – Reform Jersey 2018 election manifesto ‘Working for a Fairer Island’
Reform Jersey has lodged an amendment to the States of Jersey Budget, calling for Income Tax reform by 2020, to make the system simpler, reduce taxes on middle earners and increase taxes on the highest earners.
The proposals are to –
Abolish ’20 means 20’ and allow all taxpayers to claim tax allowances.
Reduce the marginal rate of tax from 26% to 25%, effectively giving 2/3 taxpayers a tax cut, whilst increasing tax on the top 5% of earners.
Party chairman Senator Sam Mézec said - “During the election, we pledged that if our members were elected, we would aim to make the Income Tax system simpler and fairer to reduce inequality. We believe the States needs to take action to deliver on our commitment to improving the standard of living for Islanders, and hope that members will be persuaded by our proposal to put more money in the pockets of ordinary Islanders, whilst asking those who have the broadest shoulders to carry more of the burden.”
“Our proposals have been independently verified by the Treasury Department, who have confirmed that this would raise an extra £7.5m in revenue per year, which we would want to see invested back in our public services.”The amendment is due to be debated in the week of 4th December.