Right now, I'm cringing a la James Smith. This proposal, despite its good intentions, is untenable for the following reasons: (1) Collectibility is not guaranteed, which translates into a nominal (or zero) ROI. Institutional investors especially won't bite (since they are limited to investing in instruments above a certain credit rating). (2) As alluded to above, such an "investment" vehicle would be assigned a grade by a ratings agency. Given the low amount of taxes in general that the Government collects annually, I have a feeling this would be labeled junk status. (3) Tripling the interest penalty rate will not provide an incentive to comply; repossessions and auctions will. (4) The costs (to the Government) of assigning these debts to private collection agencies may outweigh the costs of preparing prospectuses, selecting a placement agent, etc.
Want to know what the country's long-term fiscal strategy SHOULD be? (1) Reduced spending = reduced borrowing; (2) Collection of the other 75% (estimated by the IMF) of annual taxes/customs duties that go uncollected.
Exactly. 1995-2001 would have been a perfect time to introduce new forms of taxation, a period during which average GDP growth was 5%. The economy would have been able to absorb the shock and deadweight effects of fiscal reform.
I cringe whenever "smart" people say dumb things. Has Mr. Smith not heard of the warning against putting all your eggs in one basket? If the tourism sector was to go belly up today, he'd be one of the first to lambaste the government for NOT diversifying the economy.
Ladies and gentlemen, THIS is the government's true feelings about national economic development. However, in the long run it is more economically sustainable to: (1) diversify in industries where the country has abundant resources (e.g. agriculture, forestry); (2) create forward and backward linkages in all sectors of the economy (including tourism); and (3) create favourable conditions for Bahamian ownership and empowerment.
PapaGolf says...
The resurrection of Southern Alliance Insurance?
On Gov’t unveils its CLICO solution
Posted 25 June 2015, 3:29 p.m. Suggest removal
PapaGolf says...
Tell us something we don't know already...
On $200m power plant needed to meet demand
Posted 29 August 2014, 1:01 p.m. Suggest removal
PapaGolf says...
Another warning sign on the road towards currency devaluation...
On $5bn-plus deficit creating economy 'realignment' fear
Posted 21 June 2014, 6:03 a.m. Suggest removal
PapaGolf says...
Right now, I'm cringing a la James Smith. This proposal, despite its good intentions, is untenable for the following reasons:
(1) Collectibility is not guaranteed, which translates into a nominal (or zero) ROI. Institutional investors especially won't bite (since they are limited to investing in instruments above a certain credit rating).
(2) As alluded to above, such an "investment" vehicle would be assigned a grade by a ratings agency. Given the low amount of taxes in general that the Government collects annually, I have a feeling this would be labeled junk status.
(3) Tripling the interest penalty rate will not provide an incentive to comply; repossessions and auctions will.
(4) The costs (to the Government) of assigning these debts to private collection agencies may outweigh the costs of preparing prospectuses, selecting a placement agent, etc.
On Gov't urged: Sell $550m property tax debt to investors
Posted 26 March 2014, 1:28 p.m. Suggest removal
PapaGolf says...
I'm cringing right now (a la James Smith).
Want to know what the country's long-term fiscal strategy SHOULD be?
(1) Reduced spending = reduced borrowing;
(2) Collection of the other 75% (estimated by the IMF) of annual taxes/customs duties that go uncollected.
Simple, but so politically hard to do.
On VAT 'vital to country's long-term strategy' says financial secretary
Posted 18 March 2014, 2:22 p.m. Suggest removal
PapaGolf says...
Why wasn't airport experience one of the key criterion used when the architecture tender went out to bid?
On End of April target for Abaco airport opening
Posted 18 March 2014, 2:09 p.m. Suggest removal
PapaGolf says...
Again?
On RBC replies to fraud concerns
Posted 18 March 2014, 2:05 p.m. Suggest removal
PapaGolf says...
Exactly. 1995-2001 would have been a perfect time to introduce new forms of taxation, a period during which average GDP growth was 5%. The economy would have been able to absorb the shock and deadweight effects of fiscal reform.
On Fiscal reform needed to occur '10 years ago'
Posted 7 March 2014, 5:09 p.m. Suggest removal
PapaGolf says...
James Smith cringed while reading your comment :)
On CIBC: ‘No choice’ but to cut 66 jobs
Posted 18 February 2014, 5:23 p.m. Suggest removal
PapaGolf says...
I cringe whenever "smart" people say dumb things. Has Mr. Smith not heard of the warning against putting all your eggs in one basket? If the tourism sector was to go belly up today, he'd be one of the first to lambaste the government for NOT diversifying the economy.
Ladies and gentlemen, THIS is the government's true feelings about national economic development. However, in the long run it is more economically sustainable to: (1) diversify in industries where the country has abundant resources (e.g. agriculture, forestry); (2) create forward and backward linkages in all sectors of the economy (including tourism); and (3) create favourable conditions for Bahamian ownership and empowerment.
On Ex-finance minister in diversification 'cringe'
Posted 17 February 2014, 2:45 p.m. Suggest removal