A RENEWED attempt by Reform Jersey to abolish the upper-earnings limit for social security contributions and the long-term care tax was defeated during the Budget debate.
Deputy Tom Coles put forward an amendment to do away with the limit, currently £317,304, above which earnings are exempt from long-term care tax for individuals and from social security contributions for employers.
Deputy Coles said this would raise an additional £6 million a year for the Social Security Fund and £11 million a year for the Long-Term Care Fund.
Deputy Steve Ahier compared the move, part of Reform Jersey’s manifesto and the subject of similar Budget amendments in previous years, to the “assault by the Labour government on wealth creators”, and risk driving out high earners whose presence boosted Jersey’s economy.
Deputy Sam Mézec, leader of Reform, said the move was “basic, reasonable and proportionate” and would change an existing policy that was “economically and morally unjustifiable”.
External Relations Minister Ian Gorst said Jersey faced a competitive battle against other jurisdictions in attracting and retaining high-earners to the Island, but Deputy Montfort Tadier said fears that such people, or their employer, would leave the Island were “scaremongering”.
Voting on the amendment was taken in two parts, with the social security element defeated by XX-YY and proposal regarding long term care rejected by ZZ votes to AA.
