Constable Clarke opens a fair |
As part of looking back to see where the States of Jersey have gone wrong, it is probably beneficial to look back to the times when the States of Jersey got it very right.
Fred Clarke served Jersey and the parish of St Helier for three terms as Constable of St Helier, now apart from the one little problem where a Centenier Pearce was unfairly dismissed from office in order to cover up the maladministration of the then Attorney General, one Philip Martin Bailhache, later Bailiff and currently Senator, he excelled in the role, and all the while unpaid.
His operation of the parish finances was remarkably similar to the operation of his company C. Le Masurier, he never spent a penny on anything that he didn't have to.
So successful was Constable Clarke in running the parish that the finances remain in reasonably good health in spite of the spiralling bureaucracy which has been created by later Constables Le Brocq and Crowcroft. There was none of Constable Crowcroft's stealth taxation through parking tickets or selling the right to park on public land to the public, I never quite worked out how people didn't see through that little confidence trick. No it was plain and simple - the government should only spend other people's money where it is absolutely necessary.
When the States was filled with successful businessmen, businessmen let's face it who did very well by building a successful economy within the Island, the whole Island prospered. Now the Island is run by petty bureaucrats who depend on the wages they receive and are always looking to improve their lot, at the expense of the people of Jersey.
My attempts to get an answer to what the effective rate of tax in Jersey is, have met with, 'I'm sorry we cannot work that out'.
However the formula is simple, particularly for someone with a doctorate in Mathematics, simply add all the monies received by the States of Jersey in all shapes and forms by every department less all the income received from corporation tax and divide that by the total income disclosed in income tax returns less the income tax returns by companies. Multiply the answer by 100 and voila you will have the mean rate of taxation.
Then apply the distribution curve for the income of families from the statistics already produced and you will be able to infer the effective rate for families in the upper, lower and median quartiles.
So if the mean rate of effective taxation for an average family is calculated to be say 50% then the effective rate in the upper quartile is likely to be around 10% and the effective rate for families in the lower quartile is likely to be in the region of 70%. We know the effective rate for families in the lower quartile in the UK is 73%.
You may ask why the government does not simply levy income tax at 70%, well that is because we would not re-elect them if we knew how much of our time we spent working for the government, we would all be on benefits.
Whatever the result is we should compare it to the effective rate at the time when Constable Clarke and his ilk ran the island, when effective rates of taxation were around 25%.
What built Jersey is what will save any of the indebted nations now; an immediate reduction in the amount of money spent and a reduction in the levels of taxation in all forms.
We pay three taxes, GST, Income, and user pays. The general population who used to be served by public sector became managed when user pays was instigated. Now it is not how can we help and do the best we can do, the new way is how much money can we get of you to keep our wages coming in.
ReplyDeleteAn absolute scandal fuelled by weak and corrupt politicians.
You mention Darius businessmen in the States, did you notice in the days of tourism, they had business interest in Tourism and then those interests changed to supporting finance.
We also pay social security tax, a tax which is going up next year. We now pay 4% inheritance tax (also called stamp duty) and look for this to rise. Our statutes are so ridiculously restrictive that they are really just another form of taxation.
ReplyDeleteLooking at what is happening in finance I don't quite agree, they did undoubtedly kill off the tourism industry with landing taxes to fund £100,000 jobs for civil servants, they put hotels out of business by setting ridiculously increased standards in a short period of time when it should have been left to customers to decide what sort of hotels they wished to stay in.
The finance industry did financially support the expansion and over-payment of civil servants for a number of years but now they have milked the finance cow so hard that it is beginning to run dry, unfortunately the ambition of civil servants to expand the bureaucracy has not diminished and so it is the people of Jersey who are now being bled dry.
The finance industry did also fuel the house price increase with cheap mortgages for their staff.
However, see the recent news that the JFSC will issue 'civil fines' to finance companies, that they unfairly target small finance companies, etc., etc. The bureaucracy has only ever been interested in supporting its own growth.
Bureaucracy increases to support the ever increasing needs of the bureaucracy.
The greatest ever Constable! Now that's a substantial claim among political giants - and who has the tallest obelisk?
ReplyDeleteSuch issues and many more will be paraded on 28 September 2013 when the whole Island celebrates - for the very first time - "Jersey Reform Day" - and YOU can be there.
See
www.tomgruchy.blogspot.com
and plan for your participation NOW!
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Have a good holiday - Tom.