Let us not pass the income tax law

We have all talked and talked about every angle of the income tax law.  Sometimes we have debated the pros and cons calmly. Sometimes we have simply shouted that we reject it and are unwilling to discuss details.  But we have not spent much time asking ourselves and each other:  What do you think will happen if the law is not passed?

It is very clear that without additional revenue, the government will have to stop paying its bills.  Maybe that is OK to the extent that the bills are owed to wealthy foreigners or Jordanians who can suck it up.  Remember, though, that three-fourths of government spending goes to salaries.  When we think about it that way, it is just an abstract issue.  Perhaps it is more concrete if we think about the fact that almost 40 per cent of Jordanians work for the public sector.  If the government stops paying salaries to public servants, will you be effected? Does anyone in your family work in the public sector? What would happen if you lost those incomes?

For a variety of reasons, you might be sceptical that this scenario would come to pass even if the tax law was rejected. Many of us believe that someone with deep pockets will bail us out if we run out of money. A long history of receiving huge amounts of assistance from the United States, Saudi Arabia and others has given us good reason to think Jordan will never be allowed to go bankrupt. There are two reasons, though, that what worked in the past will not work in the future.  First, Jordan is less valuable as a political ally than it once was. As a result, donors of the past are not knocking our doors down with offers. Second, we are increasingly aware of the quid pro quo involved in financial assistance. As a result, we are less willing to accept the conditions of assistance.

Many of us believe that existing revenue would be sufficient if corruption was eliminated. No one knows the true amount that is wasted through corruption, but we can probably all agree that it is large. Everyone is eager to say that corruption needs to be eliminated immediately. Let us think about what that means. First, we have to be honest and admit that corruption in our country takes many forms, including the wasta that helps our brothers get their CV in front of the person hiring or the person choosing who to promote. Are we all really willing to play strictly by the book, even if that means your own brother does not get any special consideration at all? Second, through what method can we eliminate corruption, including wasta immediately? It is easy to accuse someone of corruption.  It is much more difficult, or at least time consuming, to investigate and prove guilt. We demand government make elimination of corruption a top priority. Realistically though, government cannot prosecute enough corruption cases and recover enough revenue fast enough to avoid a fiscal crisis.  The only way of rushing though corruption cases is to punish a lot of people without a fair trial. If your brother is accused of using wasta, are you willing to have him fired from his government job without a fair trial?

I do not know about you, but I want government to work against corruption, as quickly as can be done without forgoing justice. I want government to insist on transparent processes though, to be honest, having to give up my own wasta is painful. I want the government to seek financial assistance from the United States and Saudi Arabia, but I want to be aware of the quid pro quo and I want the government to reject offers that come with unacceptable political compromises.  Most of all, I do not want my brother and uncle to be laid off from their public sector jobs because the government cannot cut spending or raise assistance fast enough.

Now that I think about what would happen if the income tax law did not pass, I want to reconsider my views. Do not get me wrong, I do not like the tax law. Still, I have to admit that accepting the law is at least a little bit better than the alternative.

[email protected]