Economist: PNP’s Income Tax Promise Alone Could Cost Over $70B

Economist, Keenan Falconer estimates that the PNP’s promise to increase the country’s income tax threshold to $3.5 million could cost the country more than $70 billion.

It’s the latest assessment of the party’s eye-catching election promise in the run up to the September 3 general election.

That assessment does not include the $36 billion in other promises the party has made in its manifesto.

The PNP has promised to implement all the proposals in a fiscally responsible manner.

It says it will not impose new taxes to fund the promise.

The PNP says it expects organic growth in the economy to assist with funding.

But Falconer says he believes the proposal will take some time to implement.

Keenan Falconer, economist.

He was speaking on Nationwide at Five on Monday.

Meanwhile, Executive Director of the Caribbean Policy Research Institute, Dr. Damien King, says both the JLP and the PNP must explain to the Jamaican people how they intend to fund their tax proposals.

Dr. Damien King.

The PNP has proposed an increase in the income tax threshold to $3.5 million.

That plan is set to commence in the next budget cycle.

The JLP has proposed slashing the country’s base income tax rate from 25 percent down to 15 percent.

It says the move will be introduced in a phased approach.

The party has yet to explain the costing for the proposal.