EDITORIAL: Better can be had in 2020
There can be no denying that the last few years have been difficult ones for our island paradise. Economically and socially this country has had to grapple with many challenges, but there is still a lot to give thanks for. There is also hope, as the start of a new year always provides us with opportunities to retrace our steps and ultimately come up with ways to improve our lot.
In recent years, we have had many downgrades and the threat of the devaluation of our dollar was looming over our heads. Today, that situation has improved, but we caution Government to recognise that even as it meets the targets of its economic programme, there are many, particularly those on the lower rungs of the economic ladder, who are not directly feeling the effects of that improvement. It is therefore imperative that efforts be made at the earliest opportunity to ensure that as many as possible are reaping the benefits.
The fact is many persons were laid off in the last few years and a large majority of them remain unemployed to this day. Opportunities for gainful employment have been few and far between and so they continue to struggle to make ends meet. Short-term solutions to the unemployment problem are encouraged, but we need persons to be permanently employed to reduce the increasing burden being placed on the State to help those in need, as no doubt the demands on the welfare and the free health-care systems have grown.
We therefore hope in the new year to see the promised opportunities for retraining and retooling come to fruition and the employment prospects also spoken about, come to pass. These opportunities are necessary, for while many have taken advantage of the Trust Loan Programme and sought to start their own businesses – and we hope this continues – the fact is not everyone has the business acumen needed to be entrepreneurs and so all those in need of work cannot become their own boss. So in the coming months, more investment must be encouraged and companies which are benefiting from lower corporate taxes must seek to build their businesses, providing more jobs – directly and indirectly.
Additionally, while Government must be commended for changing the income tax bands and effectively putting money back into the hands of people, we question whether it is enough when persons are faced with increased taxation and higher food prices. In the last year, an additional 7,000 persons became eligible for the $1,300 reverse tax credit with the decision to extend the benefit to those earning up to $25,000; a Compensatory Income Credit was introduced for those earning between $25,001 and $35,000, so that they effectively pay no income tax; and the tax bands and the rates charged on taxable income were amended with a further reduction expected this month as the tax rate on the upper band is to drop from 33.5 to 28.5 per cent.
But if we are to be honest, the workers earning between $35,001 and $50,000 are the ones most at a disadvantage in this equation, and Government should perhaps relook this, as the extra money they receive is often less than both those earning below and above them. Certainly, they should also look at ways to reduce the tax burden on the people. While we understand that these taxes form part of the Barbados Economic Recovery and Transformation plan, and are helping the country to meet its economic targets, the impact on the average man and woman cannot be ignored.
Indeed too, Government must in this New Year get a better handle on the crime situation. There is no use pointing fingers, the fact is 49 murders in one year is totally unacceptable and this situation cannot be allowed to occur again. We perhaps need less talk and more action to ensure that the criminal element understand clearly that law and order must prevail.