Tuesday, July 12, 2011

Reality Bites - VAT Black Hole

This was posted nearly 3 weeks ago....yet it's only today we'll hear any confirmation on it from our elected leaders. This is something that will affect the lives of every normal person living on the Isle of Man. By the time this is finished Public Sector salaries and the various state benefits will account for considerably more than 80% of the islands total income. You can't function like that, something will have to give and in a massive way.

Isle of Man In The Shit

There are so many problems that it's hard to know where to start. I suppose you can look at the local population and taxes, except that for normal people the island is not a low tax environment. When everything is taken into account we are not that much better off than most EU states or the UK for that matter. There is also the cost of living. For those of us born here we've been told to accept the ridiculous cost of living (don't get me started on that fucking rant) because it's balanced by taxes and ever so slighlty higher average earnings. Except the average earnings figures are skewed by an extremely generous public sector and those massive earners the government is so keen to attract. Outside of goverment most people are not earning £25k a year. How can you possibly increase taxes on those amounts by enough to even make a dent in that hole and still give people enough take home to live? It doesn't add up. How many normal working class people will want to stay here with such limited services and being taxed through the nose to pay for them?

The other side of the coin is that government cuts costs. Except that they have already proven themselves totally incapable of doing that (Much easier to fiddle the GDP figures). Right now, this very minute, there will be people sat in their government offices reading magazines, playing solitaire or even better sat staring into space who will expect a pay rise. They will moan about how hard they have it. I know this for a fact because I spent a couple of years amongst them before I was driven to the brink of insanity. They have done this for years and they will do it till they retire. This is their right, along with a generous pension and job for life. The bill for this is around 320 million pounds a year...and it only ever gets bigger. We also have an amazing benefits system, even in the worst of times there is always more money for those on a fixed income. Yes, as if the majority of people working don't get a fixed amount each week/month. So you've got the untouchables of salaries and benefits, what's left? That's just it, not a lot. Not enough to run a country, never mind provide what tax payers want for their money.

I'm no expert but I reckon we're screwed this time. We've obligated ourselves to the millionaires lifestyle on the income of a Government EO. A good salary all the same but it doesn't buy a Ferrari.

"Treasury Minister Anne Craine is due to make a statement about the VAT revenue sharing agreement with the United Kingdom, with speculation the changes could eventually cost the Island another £75 million a year.

At the same time government departments will ask the court to approve £5 million in spending.

...while North Douglas MHK Bill Henderson will continue his campaign over the loss of jobs on the Island's railways. (5 jobs to be exact, out of a workforce of 8000)"
" - From Manx Radio

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