The short answer to both questions is yes, but with some, shall we say, nuances.
The size and over reach of our government is now beyond anything that can or should be considered reasonable. Therefore, their deficits and ever increasing debt have grown and continue to grow beyond any reasonable level.
Now I realise "reasonable" varies from person to person, but I would suggest the Nassau Institute has the correct idea:
The institute is an independent non-political, non-profit institute that promotes economic growth, employment and entrepreneurial activity. It believes that this can best be served with a limited government, a market economy and a society that embraces the rule of law, the right of private property and the values of family, learning, honesty and hard work.
These beliefs lead to the following broad public policy positions:
- For a balanced budget
- For the Rule of "the law"
- For the privatisation of all public corporations
- For a smaller government and lower taxes
- For an efficient justice system
- Against government management of the labour market
- Against a minimum wage, and
- Against price controls
Won't you join us? Find out more here… http://www.nassauinstitute.org/
The graphic above is fast becoming the reality, and more so every day. And with the introduction of VAT, like Barbados, it is only the thin edge of the wedge as far as more taxation is concerned because the government as a rule, not just ours, do not live by the same standards and rules they expect society to live under.
I mockingly call this Lowe's Law: Where Politician's spend their careers making laws to keep everyone else accountable, and make the average citizen and business play "fair", yet, they refuse to hold themselves to the same standards.
In closing, like wine, government and taxes are useful, but in moderation is fine.
Where in the name of God is the FNM, that Failing Nonsensical Mess, known as the loyal opposition?? Their “Sound of Silence” is nothing more than tacit support for the economic train wreck known as VAT.. At this crucial time in our country’s economic history we are confronting a foreign imposed, regressive tax, VAT, which will have pronounced, long-term destructive implications for our economy.. Where is the missing voice of FNM leadership which is needed to oppose this economic cancer.. Its tacit support is the wrong medicine and the FNM needs a new prescription to save its nation patient.. If the FNM can’t hang their political future on the most pressing economic issue of our times, then they really have no meaningful future and should hang their heads in shame..
It is often said by numerous political observers that there is little to no difference in the political objectives of the PLP and the FNM.. Their blind support of VAT reinforces this position.. I doubt that either of the party’s leadership have read or even comprehend the broad public policy positions cited above by the Nassau Institute.. After all, they understand this would limited the scope of their political power and control over the Bahamian people..
Our political parties do not accept the popular outcry of “power to the people” but only support “power over the people”.. That is exactly what a regressive consumption tax like VAT accomplishes over time, the consolidation of political and economic power and the extension of control through authoritarian rule..
No one should know better that the Bahamian people that taxation is the confiscation of individual wealth just as the evil of slavery is the confiscation of individual freedom.. Have we exchanged one evil master for another tyrant?? We all hope not, but with no outspoken political opposition to VAT, we will experience the fright of a failing economy and a government heading into bankruptcy..
Now is time for the “Sound of Silence” to change its tune, to become the sounds of “Stout Hearted Men who will Fight for the Rights They Adore”.. The rights of liberty and freedom from a bloated government whose fiscal policies will eventually doom our sacred sovereignty and nation being.. May greater wisdom prevail in this time of decision about our national destiny..
Don’t forget it was the FNM that first proposed the idea of VAT some 10 years ago so I would expect them to be silent.
Presumably they are trying to determine the way the wind is blowing?
Maybe I’m too quick to judge and they are busy determining viable alternatives like pro growth policies as we’ve seen in say Miami in recently years or Texas or North Carolina?
The FNM, I would guess, has been trying to forget that misguided idea as their only response to the current discussion is to keep their heads stuck in the sand.. Real leadership must learn to admit a mistake and move on.. The FNM’s blatant silence speaks volumes as to their economic incompetence.. The only difference is that the PLP, the government in power, has been forced to demonstrate its economic incompetence by calling their proposed tax policy a VAT and not what it really is, a tax on consumption paid by the Bahamian consumer..
Have our economic experts forgotten that in theory VAT is tax neutral through the economic chain and paid only by the final consumer.. Any customs duties and stamp tax burden paid before the application of VAT makes this so called Bahamian tax proposal everything but tax neutral.. Perhaps government had better check back with the IMF experts to define what they are really doing.. With only limited knowledge of economics, it is apparent that government is introducing a consumption tax and not a VAT, the term government has chosen to call this regressive tax on the Bahamian public.. Perhaps VAT sounds better and will not scare the Bahamian public as much.. Nevertheless, it is a Very Awful Tax which will raise the price of goods we buy and will retard real economic growth and employment..
Least we not forget that taxes cost us more than just the money government takes away from us.. It’s also all those things we would have consumed but don’t because of taxes.. Anyone still foolish to believe that increasing taxes by any name will not choke off economic growth??
The FNM as a Government administration moved way more definitively towards alternate forms of taxation than the PLP did in any given year, mainly interacting with the WTO, IMF, OECD, UN, etc and used their “recommended” consultants frequently, along with their grants of $$.
The PLP moved towards Caribbean integration more aggressively, albeit over a greater number of years.
The two directions however ultimately arrived at the same “train station” for the Bahamas.
Less Self determination, economically and politically, and certainly less “protection” for Bahamians in the Bahamas.
It is interesting that, occasionally it is mentioned that Bahamians will have opportunities overseas within signatory countries, just as the nationals of those countries cannot be discriminated against here.
Perhaps a great exodus is anticipated?
Certainly they risk a greater exodus of wealth and talent than we already have suffered for decades through Political persecution, limited opportunities and the “closed shop” mentality.
Another observation is the new “trade regimes” are facilitating a return to the agency/exclusivity era within mercantile trading, so there is going to be an effect on trade with Florida for instance.
Do we really need to reinforce the “20% that does 80% of the business”?
There are far reaching effects not even considered yet by most, even by those paying attention.
Finally.