This is something the Gini coefficient won’t be able tell you but the above chart will. So yes, the bottom 60% of Mauritian households have been made more vulnerable by the Sithanen flat tax in the first decade following its implementation creating record inequality at the same time. They had their best shares of the last twenty-five years a quarter of a century ago. Plus we need to remember that since 2006 we’ve been producing some of our smallest national cakes ever thanks in large part to the damage done by the same unsustainable tax structure. Which means 750,000 of us got our smallest share of the tiniest of cakes. Not exactly what you’d call resilience. More on this later.
One way of recognising that our old people are growing poorer is giving them a long-outstanding and well-deserved boost, just like the other tradesmen. But, remember, the cry-babies will bite back, telling you that if you pay someone at present at the minimum wage of Rs 8,900 (equivalent to 244USD), and if this climbs by 53% to Rs13,600 will represent 342 USD if exchange rates remain at present rates.
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How much will you bet that they'll again start vociferating about competitive devaluation and wave the threat of massive laying-offs for good measure?
Seniors should live decently but our youth should get opportunities to help us move forward. This can’t happen with the flat tax. As we’ve seen for the past fourteen years.
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