Yesterday I asked for ideas on what our readers would do to help sort the country’s economic woes out.
These were my two quick ones:
1. Set limits on tax levels as a percentage of GDP, possibly
even a Constitutional amendment.
2. Give BahamasAir to the
management and staff. That’s right, give it to them, lock stock and
barrel but with no subsidies going forward. Get the albatross from around our necks.
Here’s a few of the ideas received from our readers so far:
First:
I would Have dropped the duty rate to 15 or 20% flat across the board.
Is this not one of the consequences of WTO accession?
Example:
Lets say duty on Plywood is 20%.
Ordinarily, any duty changes are secret until spoken, and enacted when spoken.
Secrecy because, if you knew that it was going to 40% you would rush out and buy, as a consumer or stocker.
But, once it has gone up, sales drop, therefore less is ordered and imported. Their revenue drops also.
Inversely, if warning was given, yes, people would import or buy ahead of need. This is called planning. Investing.
Guess what? Even though the rate is lower, the governments revenue would increase, and increase on the movement of money that is invested in plywood, that otherwise would not move.
Is not the aim to stimulate the economy? What is an economy if not simply Money moving?
Second:
Legalize numbers
Raise the price of non essential goods like junk food. Raise the price of passports. Put heavy duty on foreign goods that could be grown or produced here, ex: bananas and foreign beer…..not local beer. Raise the price of work permits and stop giving so many!”
Third:
Reduce interest rates, and if I borrow, to invest in local business only. Tax all the properties that foreigners are holding on to and doing nothing with. Government audit on waste.
Fourth:
Improve public transport system.
Fifth:
First of all, I’d resign. Don’t trust anyone given that kind of power for a day!
Sixth:
Instead of giving foreign investors “duty free” concessions, give them a reduced rate of duty or a set rate of duty i.e. 25% or 20% across the board. Imagine the revenue this would generate for our Country in one year!!! I could give you figures for Abaco alone that would BLOW YOUR MIND!!! Then the Bahamian people wouldn’t be taxed to poverty! ‘Cause I’ll tell you what…the investors come in, make their fortune, then away they go!! Just as was done @ Winding Bay, the Land was given to them and was then resold for multi-millions of $$$$$ NOT RIGHT!! I don’t care how you slice it. No amount of jobs can out weigh the revenue that’s lost. ….that’s my two cents!
Seventh:
I thought that it would have made sense to raise the import tax on USED vehicles rather than the new ones to encourage more fuel efficient and more environmentally friendly vehicles.. That’s something I just can’t understand!! Why raise the duty on New vehicles????
Eighth:
One would have also thought that the government would encourage motor bikes, or bicycles, but no, the duty on them is & has been in the 70 % range,how stupid is that?
I would caution against “taxing foreigners” because we can. Their benefits are unseen, but your tribe might be next :0), but so far some good ideas to add to the mix.
Do you have anything to add?
I am a little late with my comments and I have not read the budget but like the AG of the US on the Arizona Immigration bill, I should be entitled to my opinion.
The increased duty on cars and the hotels seems to be against everything in Economics 101. What is gained by the increased duty will be lost in sales yet there is no mention of the millions of dollars that Government will no doubt continue to funnel into the big money eaters Bahamasair and ZNS.
Perhaps Government will explain that to those of us who are not economists. Sorry, I forgot, they are the Government, we are just citizens.
A flat sales tax of 17% on imports would achieve two goals. Reduced government spending – because the money is not available and a smaller government as private investment in goods and services is encouraged by minimal taxation.
There is no doubt the powers in parliament have to be limited somehow, otherwise we will achieve the long sought status as a Banana Republic.
Do we rationally expect any current political party to understand and accept the basic principles of free market economics?
More likely deep and severe economic pain is required before any material changes are made to the size and funtion of what has become an overweaning unaffordable government.
Absolutely:
Remember this article in the Nassau Institute web site on tax reform?
http://www.nassauinstitute.org/articles/article227.php
Someone else mentioned it, but there has to be lots of lost revenue in the incorrect pricing structure for government services.
The price we pay for Police Certificates or passports or drivers licenses surely cannot cover the cost?
Let the government know just how may people may have to be laid off in the not to distant future, maybe that will have some sort of effect,sorry I forgot,the PM will just hire them to work for ZNS,or Bahamas Air, or BEC, or BTC, or etc,etc,etc !
I must ask you how are you going to collect a national sales tax when you can not get full compliance with National Insurance?? The same problem would be even worst try to collect an income tax.. Who would file or even pay it?? Practical suggestions are only “pie in the sky” if they can not be effectively implemented..
Our (so-called) elected representatives must cut and/or eliminate expenses across the board.. Start with the government’s red plates which should be eliminated at once.. This morning I counted over fourteen at a major food store parking lot.. Our side our schools at three o’clock don’t even try to count the sea of red.. Next eliminate all the “show and tell” offices we have around the world.. For starters do we really need a tourist office in Atlanta?? Any fool can see that this is a big waste of money.. One last suggestion, the government need to stop going to all of these so-called “international and regional meetings” which are expensive as hell to attend and accomplish little or nothing.. First class flights, five star hotels and dinning, if you must do it, do it on your own money and not on the people’s purse.. Money should spent at home and not in New York, Washington, D.C, London or Kingston.. Haiti no need to go there; it is already here..I could go on and on, but it is most depressing..
The day after the government decided not to tax numbers and the gambling houses, I sweet old lady tried to sell me a raffle ticket outside the food store.. She assured me it was alright as it was for the church.. I could not help but ask her, would Jesus have bought a raffle ticket to support the riches church in the world.. I think not..The government had a real opportunity to to increase its revenue base, but once again it failed to address our country’s desperate financial issues and needs.
Oh by the way, I did buy a raffle ticket, but to the lady’s surprise I ripped it right up.. Maybe I might have bought another step into heaven even thought I thought that went out centuries ago with Martin Luther, but I guess not.. Now I wish I had that raffle ticket back, I might by chance have won.. But like our government, I had it in my hand but foolishly let it go..
I do wonder who really are in the small group which advises the PM and the Ministry of Finance on economics issues? Anyway.
1. We can never round up and deport all illegal immigrants, presently in this country back home. So coupled with increasing the security of all borders of the country, the govt. should offer citizenship to all immigrants presently in the country for a fee, within a certain time frame, say 18 months. Yes, an amnesty of sorts, charge $5,000, give or take, doesn’t have to be paid all at once, but one paid in full before the 18 month time frame, the individual would be entitled to Bahamian citizenship, and would be granted a passport and so on. Say 12,000 sign up for the deal that would be 60 million right there. And I do think many immigrants could come up with the money, because right now with citizenship they can’t travel, not having a passport, they could even get money sent to them from family abroad to help them make up the amount. Of course, this would stir up, lots of xenaphobic fears, but the reality is the people are here, and we can never round up and deport everyone back home, and also many of them are already a great strain on the govt. with regards to school and healthcare, so why not let them pay a fine and become full fledge citizens. It only makes logical sense, to me.
All this “Cant do” boils down to is,”Don’t want to”,if they wanted to, they would have done it by now.One big bunch of don’t give a damn politicians on both sides, they prove that to me every single day.
I’m sure you have seen the commercial on TV for Walmart saying “its roll back time at Walmart”. Well I think its roll back time for the government on taxes.They need to cut them back so they can gain more.The less they tax businesses, the more businesses can hire, the more money to stimulate the economy.What they are doing now is going to force businesses to let people go, which will make things worse.Where oh where has the common sense gone ? Why is the PM doing this to us ?I thought better of him that this.Oh well, I guess we know what thought made a man do.