Wednesday, March 17, 2010

Have You Met Our Proud Supply-sider?

You don't have to believe me when I tell you that our bean-counter is also a pathetic supply-sider. Nope, you definitely don't. You should instead hear it straight from the horse's mouth. Here's what Rama Sithanen said about Pravind Jugnauth becoming the next Finance Minister in an interview to Rabin Bhujun of L'express a week before his last May budget.
"On ne parachute pas au ministere des finances quelqu'un qui ne sait pas calculer la dette publique et qui ne connait pas l'impact de la fiscalite sur la croissance...."
Hmm. So he halved the marginal tax rate by flattening the tax structure and set Mauritius to grow by the worse pace in 25 years. Now, should we keep this kind of person at the Finance Ministry?


Anonymous said...

Thank you so much from the bottom of my heart to publish this evidence. now we have it on record.

Sanjay Jagatsingh said...

Me ze vous en prie. Pravind, twa sa?

Anonymous said...

I remember reading this interview.

Sayed Hossen justified the tax cut by the fact that conglomerates,with their army of foxy accountants were at times paying only 10% corporate tax by exploiting loopholes.

Your view about this Sanjay?

Sanjay Jagatsingh said...

Are the foxy accountants gone?

Closing loopholes and flattening the tax rates are two entirely different things.

You may wish to listen to the R1 interview I did with respect to the success of the so-called Democratisation of the Economy.

And you don't want to miss some vintage Cader explaining why we needed a stimulus package.

Anonymous said...

In a post you wrote when L'Alliance Sociale was just sworn into power, you mentioned that the government was well intentioned. However, cutting the tax rate to 15% as well as transport gratis to name a few were measures marketed during the campaign.
So how is it that you considered the government well intentioned with its proposed tax cut just when it came to power and then, when the measure has failed to produce the expected growth rate, you criticize it as being supply side crap?

Sanjay Jagatsingh said...

@anonymous: somebody (another anonymous like you by the way!!!)asked a similar question and I answered that
already (check the last comment in there).

And I will add:

1. When I wrote that in November 2005 the bean-counter hadn't implemented the flat tax. Was that something written in the manifesto? Would you have the page number? I remember hearing something that they would remove people from the tax net during the campaign but not that they would implement a flat tax.

2. We didn't really have a proper debate about electoral manifestos the last time because as you remember the parties didn't publish them until we were almost in the voting booth.

3. I have been looking at economic policies in Mauritius a lot closer during the past five years -- and quite happy to have been sharing my observations with tons of people too -- and I guess this has improved my understanding of a lot of policy issues. Doesn't hurt to go to sleep a little less stupid everyday.

Anonymous said...

thank you. Yeah I recollect Sithanen saying bringing the tax rate to a flat rate during the campaign. He said " L'architecture fiscale doit etre revue afin d'attirer les IDEs"

I appreciate the way you've formulated your third point!lol