Tax and Social Security
- Reform our Income Tax structure to reduce the marginal rate from 26% to 25%, delivering a modest tax cut for middle earners, whilst protecting the lowest earners and asking the highest earners to pay slightly more.
- Scrap the regressive caps on Social Security Contributions and the Long-Term Care Tax. Ring fence the revenue raised for our health and care services.
- Get more businesses which trade in Jersey to pay Corporation Tax.
- Suspend the High Value Residency scheme until a full cost/ benefit analysis has taken place.
- Remove GST from food and essential items.
- Re-introduce in-person appointments at the Customer and Local Services building, and establish a 'crisis desk' where those facing emergencies can turn to for help.
Nowhere in Jersey are the structures which enshrine inequality clearer than in our tax system. For many of Jersey’s taxes, the wealthier people pay a lower rate on their income than middle and low income earners. This is unfair and restricts our ability to invest in the services which we all rely on, whether we are rich or poor.
We pledge to reform our Income Tax system by removing the ’20 means 20’ calculation and allowing all taxpayers to claim tax allowances. This will enable us to reduce the marginal rate from 26% to 25%, providing a tax cut for middle earners, whilst asking the highest earners to contribute more. The majority of taxpayers will be better off under these proposals. We will also abolish the caps on Social Security Contributions and the Long Term Care Tax which currently allow those earning above £250,000 a year to pay a lower effective rate than everyone else. This will provide extra revenue which we will direct into our health service.
Companies incorporated in Jersey should also pay their fair share. The international moves to apply a minimum Corporation Tax rate of 15% provide an excellent opportunity for Jersey to seek a greater contribution from companies based here, without the risk that they will relocate to other low-tax jurisdictions. This will enable us to further invest in public services and reduce our reliance on debt. We understand the importance of the finance industry to our local economy and will not seek to make the Island uncompetitive.
The idea that attracting wealthy people to the Island will encourage a valuable revenue stream is outdated and contributes to other issues such as housing and population. There has been no evidence supplied by government to suggest that the ongoing continuation of this scheme benefits our community. We will suspend the High Value Resident scheme, until a full and comprehensive cost/ benefit review has been undertaken. At the very least, their minimum tax contribution should be raised significantly.
We pledge to remove GST from food and essential items. Reform Jersey has always held the view that GST is a regressive tax which hurts those on the lowest incomes the most. Whilst the cost of living has been rising and the use of foodbanks has increased, there can be no moral case for retaining this tax on food.
Lastly, we will instigate a full review of the Income Support system. We have grave concerns about the way support is provided to those on the lowest incomes, including how frequent bureaucratic mistakes are leading to people being pushed into poverty. We will also reintroduce in-person appointments at the Customer and Local Services Department and introduce a ‘crisis desk’ where Islanders can turn for help and advice.