NOEL SLOLEY, opposition senator, is recommending that Government introduce a new income-tax threshold for nurses, teachers and police - the three major public-sector groups that have refused to sign the memorandum of understanding (MOU3) with the Government.

Debating the Appropriations Bill in the Upper House on Friday, Sloley suggested that the current administration should move the tax threshold to a minimum of $400,000 this year and set the ceiling at $500,000 next year for these workers.

"Their threshold along with the tourism worker should be raised immediately to $400,000 per year," he stressed.

Inflation

The current threshold is $193,440. Effective July 1, this amount will increase by 3.5 per cent to $200,304 and a further adjustment to $220,272 on January 1, 2009.

He said the Matalon report recommended that the income-tax threshold should have been raised to $275,184 on April 1, 2005, and then indexed to inflation. "If it had been implemented in full, the current threshold would be as at January 2008, $382,227.

"The adjustment for July should have been in excess of $400,000 rather than the $200,304 that is proposed," he commented.

Mark Golding, tax attorney and opposition senator, agreed with Sloley that the current threshold was too low, but argued that increasing the amount would not only benefit low-income earners, but also wealthy, persons.

"The question arises, in an effort to benefit those at the bottom, why do you have to give a tax subsidy to those at the top?" he questioned.

Tax rebate

Senator Golding proposed that a mechanism should be found to provide a tax rebate to those who earn under US $10,000 (approximately $715,000) per annum.

"So that those persons are entitled to a tax rebate rather than having the threshold increase for all. We just can't afford that."

In the context of the world food shortage, Sandrea Falconer, opposition senator, urged the Government to put "a crisis plan in place" as the hurricane season approached.

"I wish to remind my colleagues that the dreaded hurricane season is one month away. If we are threatened with a hurricane, there is a rush on our supplies of food and fuel."

She said adequate planning for the season was necessary to minimise the suffering that could result from the impact of a hurricane.

The Senate approved the Appropriations Bill on Friday.

edmond.campbell@gleanerjm.com