Barbados economic/fiscal policies caused their problems.
First Published: 2013-07-28 by The Nassau Institute
Mr.Owen Arthur, former Prime Minister of Barbados, was in Freeport, Grand Bahama recently to encourage The Bahamas to implement a value added tax (VAT) like he did in Barbados because of the mounting government debt and deficits there.
Their VAT rate started at 15%, has moved to 17.5%, and now there is speculation of 21%. Of course the government denies that 21% VAT is on the horizon.
Coming on the heels of Mr. Arthur’s recommendations, when it was thought things couldn’t get much worse in Barbados, an article from Caribbean 360 states that S & P has downgraded Barbados yet again, "to negative from stable… …for the island that has “fallen back into recession”."
Following is an example of taxation, and by extension, the cost of living in Barbados, as confirmed by an owner in the automotive business.
The list price for a mid-sized SUV is $192,250.56 Barbados dollars or $96,125.00 US dollars.
This price includes?
Import Duty/Excise tax of 45% Consumption Tax of 100%, and, VAT of 17.5%
A similar mid-sized SUV here lists for approximately $43,000.
Political leaders like Mr. Arthur, seldom connect the dots of government borrowing, spending, taxing and regulating with a declining economy. With rumours circulating that The Bahamas government borrows to make payroll as revenue has slipped so badly, are we far behind Barbados?
The solution Mr. Arthur offers seems to be more of the same tax, spend and regulate policies, which causes investors to retrench even further and the problems are exacerbated.
The introduction of VAT will be a further stake in the heart of The Bahamian economy if the government does not revert to its correct role of maintaining peace and justice.
The short answer is The Bahamas needs to study the economic path of Texas or North Carolina, for example. Instead of policies that discourage investment and job growth, pursue policies that encourage the creation of wealth. The government needs to hold the line on spending and reduce taxes and regulations to help alleviate concerns of jittery investors, so the economy can begin to get back on track.
Bahamians should prepare themselves for many surprises of worsening government policy when the "ideas" like VAT being recommended by Mr. Arthur and others fail to increase government revenue enough to cover their continued spending.
A few observations/questions to your points: 1. Closing the old GHS ........ A government change that should be reversed. 2. Basing scholarships on mere academics ...... I had the great fortune to sit on a board for technical scholarships and while academics is important many other criteria apply. 3. Mining public schools for top students ..... Who can blame anybody for looking for the best students? 4. Creating a "native" exam ......... What do you mean? 5. Double standards in curriculum/testing .......... Aren't there set curriculum requirements by the government? Aren't the BJC and BGCSE exams the same for all students? 6. Archaic school hours & yearly schedule ............ You mean should be longer hours? 7. CBAs & unions ..... What action do you recommend? 8. PSC General Orders ........... What do you recommend? 9. The educational system is set up for public school students to be at a disadvantage to the private/IB schools. This is the function of government I thought? Why do they allow whatever you think is going on?
If I get the chance I will certainly share thoughts on ideas for possible improvement with the Minister. I trust you will do the same. Do you have specific examples where the political and mercantile classes "blocked" improvement of education? If so I would like to share those with the Minister as well opportunity permitting. Here's hoping.
sheeprunner12, ideas effect change. Maybe if there are enough reasonable ideas advanced we will begin to see change? It is in the political and mercantile classes interest to support effective education. How are they blocking improvement?
RickLoweBahamas says...
Barbados economic/fiscal policies caused their problems.
First Published: 2013-07-28 by The Nassau Institute
Mr.Owen Arthur, former Prime Minister of Barbados, was in Freeport, Grand Bahama recently to encourage The Bahamas to implement a value added tax (VAT) like he did in Barbados because of the mounting government debt and deficits there.
Their VAT rate started at 15%, has moved to 17.5%, and now there is speculation of 21%. Of course the government denies that 21% VAT is on the horizon.
Coming on the heels of Mr. Arthur’s recommendations, when it was thought things couldn’t get much worse in Barbados, an article from Caribbean 360 states that S & P has downgraded Barbados yet again, "to negative from stable… …for the island that has “fallen back into recession”."
Following is an example of taxation, and by extension, the cost of living in Barbados, as confirmed by an owner in the automotive business.
The list price for a mid-sized SUV is $192,250.56 Barbados dollars or $96,125.00 US dollars.
This price includes?
Import Duty/Excise tax of 45%
Consumption Tax of 100%, and,
VAT of 17.5%
A similar mid-sized SUV here lists for approximately $43,000.
Political leaders like Mr. Arthur, seldom connect the dots of
government borrowing, spending, taxing and regulating with a declining economy. With rumours circulating that The Bahamas government borrows to make payroll as revenue has slipped so badly, are we far behind Barbados?
The solution Mr. Arthur offers seems to be more of the same tax, spend and regulate policies, which causes investors to retrench even further and the problems are exacerbated.
The introduction of VAT will be a further stake in the heart of The Bahamian economy if the government does not revert to its correct role of maintaining peace and justice.
The short answer is The Bahamas needs to study the economic path of Texas or North Carolina, for example. Instead of policies that discourage investment and job growth, pursue policies that encourage the creation of wealth. The government needs to hold the line on spending and reduce taxes and regulations to help alleviate concerns of jittery investors, so the economy can begin to get back on track.
Bahamians should prepare themselves for many surprises of worsening government policy when the "ideas" like VAT being recommended by Mr. Arthur and others fail to increase government revenue enough to cover their continued spending.
https://www.nassauinstitute.org/article…
On Fiscal hawk: Reject IMF on revenue ratio
Posted 7 June 2018, 12:41 p.m. Suggest removal
RickLoweBahamas says...
http://tribune242.com/users/photos/2018…
On Fiscal hawk: Reject IMF on revenue ratio
Posted 6 June 2018, 5:53 p.m. Suggest removal
RickLoweBahamas says...
http://tribune242.com/users/photos/2018…
On Fiscal hawk: Reject IMF on revenue ratio
Posted 6 June 2018, 5:48 p.m. Suggest removal
RickLoweBahamas says...
So why add unrelated comment?
You still haven't defined how collusion or what collusion exists/
Just as I thought we were getting somewhere.
On The learning crisis
Posted 16 February 2018, 5:43 p.m. Suggest removal
RickLoweBahamas says...
How?
What collusion?
On The learning crisis
Posted 14 February 2018, 5:12 p.m. Suggest removal
RickLoweBahamas says...
A few observations/questions to your points:
1. Closing the old GHS ........
A government change that should be reversed.
2. Basing scholarships on mere academics ......
I had the great fortune to sit on a board for technical scholarships and while academics is important many other criteria apply.
3. Mining public schools for top students .....
Who can blame anybody for looking for the best students?
4. Creating a "native" exam .........
What do you mean?
5. Double standards in curriculum/testing ..........
Aren't there set curriculum requirements by the government? Aren't the BJC and BGCSE exams the same for all students?
6. Archaic school hours & yearly schedule ............
You mean should be longer hours?
7. CBAs & unions .....
What action do you recommend?
8. PSC General Orders ...........
What do you recommend?
9. The educational system is set up for public school students to be at a disadvantage to the private/IB schools.
This is the function of government I thought? Why do they allow whatever you think is going on?
On The learning crisis
Posted 14 February 2018, 12:31 p.m. Suggest removal
RickLoweBahamas says...
Thanks sheeprunner12.
Should I get the chance to meet the Minister I will certainly share your views.
On The learning crisis
Posted 13 February 2018, 5:26 p.m. Suggest removal
RickLoweBahamas says...
If I get the chance I will certainly share thoughts on ideas for possible improvement with the Minister. I trust you will do the same.
Do you have specific examples where the political and mercantile classes "blocked" improvement of education? If so I would like to share those with the Minister as well opportunity permitting.
Here's hoping.
On The learning crisis
Posted 13 February 2018, 1:13 p.m. Suggest removal
RickLoweBahamas says...
sheeprunner12, ideas effect change. Maybe if there are enough reasonable ideas advanced we will begin to see change?
It is in the political and mercantile classes interest to support effective education.
How are they blocking improvement?
On The learning crisis
Posted 13 February 2018, 7:56 a.m. Suggest removal
RickLoweBahamas says...
sheeprunner12 instead of suggesting the Massey report is useless, offer ideas that might help solve the problem that we obviously agree exists.
On The learning crisis
Posted 12 February 2018, 9:17 a.m. Suggest removal