This paper presents an overview of the informal market economy in Jamaica, a sector that
represents approximately 40% of total GDP output. Specifically, we focus on the impact of the
informal economy on productivity, economic growth, and social welfare. We present a
discussion in favor of a transition from the informal to formal markets, with an analysis of the
feasibility of implementing tax reforms in order to capture the substantial amount of uncollected
tax revenues necessary for economic development (taken from a report entitled "The informal economy in Jamaica: Is it feasible to tax this sector" by Chantal Wedderburn, Eric P. Chiang and Rupert Rhodd all from Florida Atlantic University.What is you say on this issue? Can we tax prostitution? Can we tax illegal gambling? Drug dealing?
Would a tax of these sectors be tantamount to legalization?
Can we tax and collect? is it worth the trouble?
What say you.
