The basis for flattening our tax structure to 15% was average growth rates of 8%. We know it had to be higher than the 5% our economy had been clipping for ages and with higher top tax rates. This makes sense. It's like a business which was previously growing at 5% and had a gross margin of 20% decides to cut that margin to 15% thinking it can grow at 8%. It would go for something like this if it wanted to increase its market share. A predator would of course raise prices after and if it had managed to drive its competitors out of business. For example Amazon.com now has physical stores.
But as the above chart shows we never got the 8% growth rate in any of the ten years since Sithanen starting promising them. We got only half that rate on average. Which is less than what we were clocking before tax rates were slashed. And it's not because of the Great Recession which lasted only 18 months. As he had argued. In fact the rates we've been clocking for the past six years reflect the low growth path his massive policy blunders -- implemented to finance his tax-cuts -- has put us on.
6 comments:
Enn sekans menter, menter isi usi.
Go tell this to this gentleman who still worships Rama while advocating a junk rupee. Two in one, qui dit mieux?
Is this a sort of conspiracy where those responsible of protecting the People start sitting on their hands to the detriment of the People and at the advantage of the rent-seeking land-owning elite which keeps wailing for tax rebates everywhere (while gesturing obscenely with the threat of non-investment = no job creation) which causes lower investment and a stagnation in the level of education of the masses, and therefore pandering to the lobby for easier entry of expatraite labour in Dodoland...? And the lower entries of taxes mean lower investment in public services, which the same elite will use as example to lobby in favour privatising them in favour of the self-proclaimed super-efficient private operators...?
No, I hope I'm severely deluded...
Wadire depi 10 banane pena stabilite ekonomik. Lol!
Sori, stabilite politik.
Sir,
here is another "bumper crop" of the sithanan reforms. http://www.lexpress.mu/article/296861/tevin-sithanen-soins-qualite-prix-raisonnables-clinique-flacq An entrepreneur has opened up a clinic in flacq in a hurry in a builkding which was not meant to be used as a clinic. The entreprenuer wants public hospitals to outsource services to his company. Good public money must be involved. Is not that lovely? Sell our beaches, land, water and now some want to do things that our public system has been doing for many years. Daddy knew what he was doing...
The Dubai ruler is investing 7 or 8 billions rupees for the renovation of the St Geran and the development of expensive villas through the Investment Corporation of Dubai. That's the main investment arm of the government of Dubai. We have something like this too in Mauritius: the State Investment Corporation (SIC). It's been pretty inactive the past 10 years. Do we have to wonder why? Can you imagine the number of opportunities that we have missed because of one or two Bretton-Woods-infatuated morons?
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