VAT Idea

Posted on March 13, 2014 by weblogbahamas

 Peters VAT Quote

Say what? Really?

Me thinks that's one of those "I wish I had not said that" comments?

This entry was posted in Blogs by Rick Lowe, Current Affairs, Economy, International, Politics/Government, Society, Taxes, Weblogs. Bookmark the permalink.

5 Responses to VAT Idea

  1. Tradewinds's avatar Tradewinds says:
    March 13, 2014 at 3:00 pm

    This is the perfect example of the economic nonsense that is driving our country and the extent of economic stupidity that seems to prevail throughout government.. Get out your economic textbook if you still have one and read the analysis on the theory of Excess Tax Burden and resulting Deadweight Loss.. Perhaps then you may realize the folly of your statement.. Try to grasp the resulting Deadweight Loss that results from VAT, and then you may understand the economic loss that will accrue to the country.. The estimates are rather frightening and run as high as 30 percent.. No one in government seems to comprehend this economic issue and only dismiss it in uninformed ignorance.. Witness the outright ignorance and dismissal of the Nassau Institute’s report on The Economic Consequences of the Value-added Tax for the Bahamas..
    VAT is an economic force and driver which will expand poverty levels and will result in increasing crime and violence.. Check out Greece and Spain if you don’t believe me where the attitude “if I don’t have money for food, then I will just take it” seems to prevail.. Bahamians, like their Greek and Spaniard counterparts, are not going to settle for so-called exempt, bread basket goods.. Better learn from Marie Antoinette’s example and folly during the Paris bread riots of her time.. Supporters of VAT are holding the nails to seal the Bahamian economic coffin for perhaps for good.. The problem is that the Bahamian masses are trapped inside..

    Reply
  2. The Oracle's avatar The Oracle says:
    March 13, 2014 at 4:51 pm

    More like reduced to buying bread basket only!
    I wonder if the IMF have offered these mouthpieces asylum once their job is done?
    They may well need it!

    Reply
  3. Rick Lowe's avatar Rick Lowe says:
    March 13, 2014 at 5:54 pm

    It’s just incredible that she would even think something like that, much less say it.
    Surely we want people to aspire to doing better not worse?

    Reply
  4. Overtaxed's avatar Overtaxed says:
    March 14, 2014 at 9:38 am

    Sorry,she has lost her mind.She must be in the same trance Christie is in.How foolish of her to say something so stupid.

    Reply
  5. Tradewinds's avatar Tradewinds says:
    March 14, 2014 at 8:41 pm

    Where she was incorrect in terms of basic economics is that VAT alters consumer preferences as a result of Excess Burden and does not permit consumer “choices about what to buy”.. This economic misunderstanding led to her an inappropriate statement based on choices.. This may seem like a minute point, but over time in the aggregate it will result in a huge loss to the economy..
    What is somewhat frightening is that the Bahamian government and its so-called experts appear to be totally unaware of the aggregate impact of Excess Burden resulting from VAT.. Are they so infatuated with VAT, that they are completely blind to the dismal economic outcomes we shall be forced to endure?? As a result of VAT implementation, every single consumer transaction will result in a compounding of Deadweight Loss to the Bahamian economy.. This is why VAT is highly recessionary and with the cost of living rapidly increasing, years of crippling stagflation will be on the horizon..
    We will have a lot of company as Japan has suffered stagflation for the last 20 years and Europe now seems to be fast tracking on a similar course over the next 10 years.. Get ready Bahamas, VAT is about to BAT us into economic recession or maybe even worst..

    Reply

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