Proper business tax reform. Currently businesses are taxed on turn-over (revenue), which is a terribly regressive form of tax. Businesses should be taxed on profits. Currently, if a business losses money, they still have to pay the government tax money.
By taxing profits, you encourage businesses to reinvest in capital and employees. Having high volume with low margins is penalized due to tax on turnover. By taxing profits at say a 10% flat tax, then companies are able to lower prices to increase volume and in turn lower acquisition costs due to more buying power.
Taxes should incentivise investment, which leads to higher employment and more money moving through the economy.
On the topic of taxes. All land should be taxed, including vacant, developing, and low value properties. Currently vacant land owned by Bahamians are free to hold onto the land without any incentive to develop, improve, or sell the land. There is no incentive to remove derelict buildings, or to provide capital improvement to low value and low quality properties. If people have to pay taxes on properties that are not bringing in any income, then they will rethink what why they are simply sitting on it. This should also cause a rise in the offer for sale of vacant and derelict properties and at more accessible prices and therefore allowing more Bahamians to participate in property ownership and encourages investment
Finally, taxes must be collected. There is no excuse for having over $600MM in real property tax in arrears.
On a separate improvement, the government needs to bring itself into the 21st century of technology. No more hand written licences or passports. Our country needs to be digitized. Updating government working to be totally computer based will dramatically lower costs and accessibility of services on out islands. It will encourage investment in training and put a great importance on education as people can see a direct result of learning modern skills. Customs, Policing, Tourism, Road Traffic, Medical, NIB, and Social Services will all see far greater efficiency and provide huge improvement to services.
VAT is not paid only when a business has sold the imported item. The importer pays the VAT on the cost of the item and on the customs duty. When the item is purchased by the consumer, the customer pays the VAT on the final price. The business then remits the difference to the government (Customer VAT - Import VAT = Payment to the government).
The tax itself is pass through, but the actual mechanics o it mean that the importer pays it and then gets it back from the customer. So he importer is still out that money until the product is sold.
This is typical of any politician in this country. When have you heard anything of substance from any of them. It's all just BS. Always so worried about who insulted them and how they deserve respect. Not one actual concrete solution for progress or change, for years now.
So, feeling I needed the facts, I took your advice and read the DNA's Economic plan. There is extremely little about actionable plans. Promote tourism and promote agriculture are not concrete solutions. This is on top of the fact that they have not revisted this Plan in years as they write that the national debt is only $4.1B (that was a few years ago).
The DNA's economic plan addresses a lot of obvious issues but does not offer more than a cursory look into ways to actual solve the problems. Lots of word, not a lot of substance.
Who cares what Wayne Monroe thinks. Why is Neil Hartnell always so interested in getting uninformed opinions for the cast of Nassau sleaziest people. Is there really no other news happening that we have to hear what Wayne Monroe or Frankie the Snake have to say about every little thing.
This is the exact same story from last year where they claimed unemployment went down after taking their survey right during the build up to Carnival. And as everyone predicted, as soon as Carnival was over, the rate shot right back up to where is was, and we will see that again with the numbers for next November.
A couple weeks of part time work is all that is shown by this report.
newcitizen says...
By the way, I very much agree with everything you said Baron, just wanted to clarify the VAT point.
On THE BIG QUESTION: Kickstarting the economy
Posted 23 July 2016, 12:14 p.m. Suggest removal
newcitizen says...
Proper business tax reform. Currently businesses are taxed on turn-over (revenue), which is a terribly regressive form of tax. Businesses should be taxed on profits. Currently, if a business losses money, they still have to pay the government tax money.
By taxing profits, you encourage businesses to reinvest in capital and employees. Having high volume with low margins is penalized due to tax on turnover. By taxing profits at say a 10% flat tax, then companies are able to lower prices to increase volume and in turn lower acquisition costs due to more buying power.
Taxes should incentivise investment, which leads to higher employment and more money moving through the economy.
On the topic of taxes. All land should be taxed, including vacant, developing, and low value properties. Currently vacant land owned by Bahamians are free to hold onto the land without any incentive to develop, improve, or sell the land. There is no incentive to remove derelict buildings, or to provide capital improvement to low value and low quality properties. If people have to pay taxes on properties that are not bringing in any income, then they will rethink what why they are simply sitting on it. This should also cause a rise in the offer for sale of vacant and derelict properties and at more accessible prices and therefore allowing more Bahamians to participate in property ownership and encourages investment
Finally, taxes must be collected. There is no excuse for having over $600MM in real property tax in arrears.
On a separate improvement, the government needs to bring itself into the 21st century of technology. No more hand written licences or passports. Our country needs to be digitized. Updating government working to be totally computer based will dramatically lower costs and accessibility of services on out islands. It will encourage investment in training and put a great importance on education as people can see a direct result of learning modern skills. Customs, Policing, Tourism, Road Traffic, Medical, NIB, and Social Services will all see far greater efficiency and provide huge improvement to services.
On THE BIG QUESTION: Kickstarting the economy
Posted 23 July 2016, 11:01 a.m. Suggest removal
newcitizen says...
VAT is not paid only when a business has sold the imported item. The importer pays the VAT on the cost of the item and on the customs duty. When the item is purchased by the consumer, the customer pays the VAT on the final price. The business then remits the difference to the government (Customer VAT - Import VAT = Payment to the government).
The tax itself is pass through, but the actual mechanics o it mean that the importer pays it and then gets it back from the customer. So he importer is still out that money until the product is sold.
On THE BIG QUESTION: Kickstarting the economy
Posted 23 July 2016, 9:48 a.m. Suggest removal
newcitizen says...
What are you going on about now?
On QC blasts Sarkis for ‘obstruction’
Posted 22 July 2016, 2:41 p.m. Suggest removal
newcitizen says...
You add as much to these conversations, as sand adds to lube.
On Rollins: PM making up reasons to stay in power
Posted 22 July 2016, 2:40 p.m. Suggest removal
newcitizen says...
This is typical of any politician in this country. When have you heard anything of substance from any of them. It's all just BS. Always so worried about who insulted them and how they deserve respect. Not one actual concrete solution for progress or change, for years now.
On DNA: Loretta Butler-Turner has nothing to offer on economy
Posted 22 July 2016, 2:32 p.m. Suggest removal
newcitizen says...
So, feeling I needed the facts, I took your advice and read the DNA's Economic plan. There is extremely little about actionable plans. Promote tourism and promote agriculture are not concrete solutions. This is on top of the fact that they have not revisted this Plan in years as they write that the national debt is only $4.1B (that was a few years ago).
The DNA's economic plan addresses a lot of obvious issues but does not offer more than a cursory look into ways to actual solve the problems. Lots of word, not a lot of substance.
https://www.mydnaparty.org/issues/econo…
On DNA: Loretta Butler-Turner has nothing to offer on economy
Posted 22 July 2016, 2:29 p.m. Suggest removal
newcitizen says...
Who cares what Wayne Monroe thinks. Why is Neil Hartnell always so interested in getting uninformed opinions for the cast of Nassau sleaziest people. Is there really no other news happening that we have to hear what Wayne Monroe or Frankie the Snake have to say about every little thing.
On QC blasts Sarkis for ‘obstruction’
Posted 22 July 2016, 2:13 p.m. Suggest removal
newcitizen says...
This is the exact same story from last year where they claimed unemployment went down after taking their survey right during the build up to Carnival. And as everyone predicted, as soon as Carnival was over, the rate shot right back up to where is was, and we will see that again with the numbers for next November.
A couple weeks of part time work is all that is shown by this report.
On Carnival jobs helped with unemployment
Posted 22 July 2016, 2:10 p.m. Suggest removal
newcitizen says...
You are such a waste of air. Has trolling not grown old for you yet?
On VIDEO: ‘Bitten by bugs more than 300 times at resort’
Posted 17 July 2016, 6:56 p.m. Suggest removal