Isle of Man could always consider income tax

Posted on

Tax News.Com reports:

The Isle of Man government has announced the appointment of Dan Davies as the Transforming Government Programme Director, to drive forward fiscal reforms to reduce government expenditure, required as a result of the revision of the VAT-sharing agreement with the United Kingdom.

Davies will head a central team, resourced from within the government, who will work closely with Departments to deliver substantial cost savings over the next three years in line with targets set out in February’s Budget. Several initiatives are being progressed as part of the package to rebalance the government’s finances following the reduction in the Isle of Man’s share of VAT revenue, under a revenue sharing agreement with the United Kingdom, revised in March 2009. These initiatives will include the introduction of shared service centres, reductions in staff costs and better use of technology.

Of course, none of this is necessary.

The Isle of Man could:

a) Charge income tax on those earning more than £100,000 a year

b) Increase its income tax rate from 20%;

c) Charge tax on companies in accordance with international requirements.

But dogma dictates cuts in services.

I wonder how long people will put up with that?

Will we see people on the streets of Douglas as we will on the streets of London this weekend?