I am neither an economist, business guru nor even a person who did business subjects at school. But since the news of this global economic meltdown surfaced I have been trying to wrap my thoughts around the possible impact it might have on my family and country.

I am not referring to the obvious impacts such as increased prices on the essentials for survival. I have been listening to the local, regional and international media on the impact that this result of poor management of one's economy has caused and the short- and long-term solutions that the authorities (whom we depend on to save us) have formulated and are planning to implement.

Purchasing power cut

I am very concerned as a young family man on the issue of raising the GCT from 16.5 per cent to over 20 per cent. My understanding is that the purchasing power will be cut significantly. How can this be a solution for garnering more revenue to service the country's debt?

In addition, production is low, which means no additional money earned. I thought the idea was to get more money by getting people to spend more. I have seen other countries implement a tax cut. What are we, the non-conformist or do our so-called intellectuals or authorities on the subject see something that first-world or developed countries do not see?

What is going to happen to the income tax? What about the points made by the president of the Private Sector Organisation of Jamaica on reducing income tax or that of Ethlyn Norton-Coke, who suggested the abolition of income tax and a hike in GCT rate. That would encourage me to spend more filling the pockets of the Government for debt servicing and surely would help with the economic growth and development.

I am, etc.,

DUANE DALEY

duprof@yahoo.com