by Rick Lowe
In recent days there's a lot of activity by government officials and other business people talking about the need to change the tax system. In fact there's a symposium on the subject scheduled for October 25 – 26, 2012.
So far, every comment I've read, from Mr. Franklyn Wilson and Mr. Ian Fair from the private sector or Mr. Khaalis Rolle and Mr. Ryan Pinder from the government, the refrain, that feels scripted, is government needs more revenue.
Well I think that's hog wash. The government needs to spend less money and collect the taxes that are due to start with.
To their credit, both government ministers (Rolle and Pinder), mentioned the level of government spending. Unfortunately they did not suggest it needed to be reduced. And while he didn't say the country was being forced to change its tax regime, Mr. Rolle noted that, as a result of WTO and EPA membership, the government is required to reduce border taxes.
The Chamber of Commerce and the IDB are also on board suggesting tax reform (read more revenue for govenrment) as an imperative.
When everyone interviewed by the press, to a man (and a woman), all suggesting the government needs more revenue, as if they are singing from the same hymn book be careful. When you see politicians and business people lining up like this to say we need to pay more taxes, the general public just might be in for a surprise. We might end up like Barbados where they pay a VAT (17.5%), Personal income tax (33% Avg) and Business/Corporate (25%) Income Tax and Import Taxes from 40% to 150% or higher.
Surely we need to look at reducing spending first?
As noted in this presentation… "It does not matter if we retain the current system or implement any of those recommended here tonight, we must ensure controls on the governments ability to tax, spend and borrow with reckless abandon, (as successive governments have been wont to do since Independence) are in place before any change is attempted."
The impact of higher taxes and excessive regulation put a damper on economic activity, so there is a possibility that the proposed changes might do further damage to the economy. Obviously the lower the tax rate and the fewer the regulataions the better.
Finally though, I think it's curious if not presumptuous how the political class, not just here, but the world over, believe they have the implicit right or authority to spend and borrow more and more with reckless abandon each generation and then pass higher tax bills and debt on to the next?
Hog wash is right Rick.They have to stop spending & stop now.We can’t take anymore taxes,we just can’t.They are soon going to tax people right out of business.lets not even think about the VAT,that has England in bad enough shape right now.Take a look at the country’s that have reduced the taxes & you will see that they are growing by leaps & bounds.The more you reduce the taxes,the more people will spend & the more you will grow.For God & country’s sake Mr.prime minister please before you close the country down, stop spending & stop increasing taxes because soon you will not have anyone left to steal taxes from.
There is a simple lesson we can learn from the foolish and irrational progressive tax policies of the United States.. Policies that have have driven billions of dollars in investment overseas to escape an oppressive tax system.. Today the United States has the highest corporate rate in the world exceeding even Japan that has brought down it excessive tax rates.. Even in Russia there is a thirteen percent flat tax which is not an excessive burden on its people..
Black and Decker, the multinational tool manufacturer, today does not have a major manufacturing plant open in the United States as all of its plants have been closed down.. All of its manufacturing has been moved overseas where regulations are reasonable, labor costs are less and productivity is high.. And just as important these countries have tax policies that are fair and encourage employment and economic growth.. Globalization, international competition and oppressive government policies have driven Black and Decker to move its manufacturing overseas..
What is the simple lesson to be learned by the Bahamas when it comes to its fiscal policies and increasing its taxe base?? Lets look at it this way, there is only so much money to go around and when the government takes more money in taxes, fees and charges from the people, the people are left with far less money to spend creating less consumption.. The government then spends this money which becomes subject to excessive waste and corruption.. We must learn that only the people will spend their own money far more wisely than the wasteful government.. This has been the sad experience of the United States as it follows redistribution of wealth policies, and we must not follow this bad example by permitting government to take more of our hard earn money.. Time to wake up Bahamas before the government finds more ways to pick your pockets..
Pick your pockets is right Tradewinds,I believe it is stealing,plain & simple.Taxes should be reasonable,not extravagant.At least show us the people you are trying to cut back.This is really getting out of hand & its past the time for it to stop.I started my business to work for myself,not the damn government.
With the way the global economy is, governments will continue to ask for more from the people so we can keep expecting to pay more in taxes.
Well I am asking more from the government,more cuts in spending.I also think the cabinet should be cut in half,that would save a fortune right there.How about this Abraham Lincoln quote
“You cannot help the poor by destroying the rich.
You cannot strengthen the weak by weakening the strong.
You cannot bring about prosperity by discouraging thrift.
You cannot lift the wage earner up by pulling the wage payer down.
You cannot further the brotherhood of man by inciting class hatred.
You cannot build character and courage by taking away people’s initiative and independence.
You cannot help people permanently by doing for them, what they could and should do for themselves”.
… Abraham Lincoln