So the chickens have finally come home to roost. Every Jamaican is feeling the pinch, and being asked to pay additional taxes is repugnant. But as the Golding administration stares down the barrel of a multibillion-budget deficit, like a bad dream, the idea of imposing new taxes on gasolene, food and cigarettes keep recurring.

Not many people appreciate that the Golding administration inherited a dry treasury. Additionally, several factors served to compound the issue. There were the unrealistic pre-election promises made by the JLP, while on the hustings, Bruce Golding's decision to install a big government by offering Cabinet positions like confetti. Then came the global meltdown. Audley Shaw stupidly sought to assure the nation that Jamaica was invincible and would not suffer the side effects that were afflicting other nations. We soon recognised that he spoke like an amateur and became clear that Jamaica was not immune to the economic shocks being felt elsewhere. Fact is the sluggish Jamaican economy has been in dire need of resuscitation long before the meltdown.

Luxury cars

At the risk of oversimplifying the problem, I would like to compare the running of Jamaica to that of taking care of a household. Here is the father and head of the household, who works assiduously to provide his family with the fine things in life. His wife is an educated woman but she stays home and takes care of the children, who all attend the most expensive schools.

The family has two high-end luxury cars, a helper, a gardener and their grocery bill and vacation travel expenses are huge. The father has been borrowing heavily to finance this lifestyle. With a mounting credit-card debt, and other obligations, the father continues to increase his borrowing. Finally, it's crunch time and the bank advises that he has borrowed beyond his limit and there is no more credit available to him. What are the options for this bankrupt householder? A prudent householder has to make serious adjustments to dig himself out of that hole and get back on track.

It's crunch time and the Jamaican Government and the Jamaican people need to make serious adjustments. The Government has to lead by example and cut spending. Why do we need a senior minister and two juniors in the Ministry of Foreign Affairs? We seemed to have learnt few lessons from our IMF experience of the 80s when structural adjustment was the buzzword. Back then, we were told that the economy could not survive on one leg and we needed to develop new areas of economic activity in the interest of improving the long-term health of the country. But did we? The productive sector has been in decline for years and, today, the greatest growth area appears to be in peddling phone cards.

Creative thinking

There is no doubt that the tax system needs to be normalised and tax blind spots need to be eliminated. It requires creative thinking and the administration seems woefully short of the asset. Creating a more balanced tax system calls for all business operators, including higglers, artisans, hairdressers, and barbers to pay their taxes.

Then there are some businesses that do not now collect GCT, which gives them an unfair advantage over rivals who must add the tax to their prices. But, more important, they cost the country mega dollars in lost revenue. Fairness demands that GCT be charged consistently and that those who fail to hand it over are severely punished.

The Opposition People's National Party (PNP), now gloating at the current dilemma, did not cover itself in glory during its reign for we can recite various politically expedient manoeuvres of that administration that helped to sink us deeper in a hole. The PNP can claim no major victory for fairness and fiscal responsibility.

As Mr Golding seeks to rethink this tax package, he must seriously take into consideration some of the recommendations of various stakeholders. And one wonders why prior consultations were not examined before off-loading this massive tax package. Transparency may have saved the day.

Dennie Quill is a veteran journalist. Send feedback to columns@gleanerjm.com