By Alex Rosaria
The community has the right to know the real impacts of plans presented by political parties. However, it is often preferred to push things aside without analysis and data.
When critical observations are made, it is often dismissed and people are challenged to engage in political debate instead of rational exchanges. There is no learning from projects such as 1000 cattle, the Curaçao-Bonaire country, the creation, and the sale of dog meat with Nazi Germany.
Today, discussions are being held about the elimination of Payroll Tax (Lb). Do you believe that political parties, who are selling themselves as serious, will open up for critical analysis and explain coherently to the public what the plan is about, and its consequences?
I want to know what the elimination of Payroll Tax (Lb) means for inflation (increase in cost of living) due to more money in circulation; for the monetary union with St. Maarten which requires coordination of macroeconomic management; for services to the public, because there will be less money in government coffers; and for the difference between "haves and have-nots," which, according to data (GINI), is already very large.
Would replacing Lb with indirect taxes like OB and ABB help? Lb is progressive, higher for the wealthy. Removing Lb and replacing it with indirect taxes (which apply to everyone) would affect the lower classes more.
What does that mean in terms of avoiding increased poverty? Would eliminating Lb be an immediate or gradual process?
It’s good to know if there is an independent expert who is willing to provide an opinion on some of these plans. I recommend that political parties make use of experts and let the economic models from MEO and CBCS carry out the calculations. Let the youth engage in political debate with experts on the side.
~ Alex David Rosaria (53) is a freelance consultant active in Asia and the Pacific. He is a former Member of Parliament, Minister of Economic Affairs, State Secretary of Finance and UN Implementation Officer in Africa and Central America. He is from Curaçao and has an MBA from University of Iowa (USA). ~
