Hi John

Please see article below on Barbados. They recently implemented VAT and it didn't bring down the debt. The extra money from VAT can go to help the newly created poor.

We have a safety net. We can go to IMF for a loan if our debt gets up to 100% of GDP.

Barbados Seen Needing IMF Help Amid No Growth, High Debt
2014-10-14 14:06:47.684 GMT

By Aleem Khan
Oct. 14 (Bloomberg) -- Barbados business leaders and
economists say the Caribbean island should seek an accord with
the International Monetary Fund as the government struggles to
spur an economy with one of the world’s heaviest debt burdens.
Efforts by the government to trim the public sector by
firing 3,000 workers and reining in spending failed to spark
growth in the first half of the year in a country with a debt
load equal to 96 percent of gross domestic product. That
prompted the Barbados Chamber of Commerce to say the government
should consider talks with the IMF.

Excellent points John and well researched. However, the administration can't reduce expenditure as there are so many poor people that need jobs, money, healthcare and education. The administration can't increase transparency (e.g. BEC sale and how they tried to sell BTC during their last administration) for obvious reasons. It can't repay the nation debt because it is too big. It can't stop the waste and leakage for obvious reasons again.

We are still investment grade so we can continue to borrow at good rates.
So the debt must and can keep growing. I think we will be OK through 2020. After that hopefully the oil revenues will kick in and we can pay off the debt altogether.

Yes, very bad that foreign yatchs got oil on their hulls.

We need to build proper housing and get the people living in Shanty Towns into them. Also we need to turn on the lights and running water for all Bahamians so we can keep ourselves clean.

Also we will be drilling for oil which will makes lots of money and diversify the economy. And don't forget stem cell research which will start up a whole new biotechnology industry. Wow...that's 3 new industries if you include numbers.

Hopefully the revenue collection from VAT and gaming taxes will reduce the national debt and pay off for some of the administrations project cost overruns.

VAT, in essence, will make 4,500 businesses revenue collection agents for the government. I think all of these companies will be honest and pay over to the government the revenue they collect.

We should expect a big windfall of taxes from the legalization of gaming.

Nothing to worry about, all will be fine. Lets give them more time to sort things out.

Keeping the actual level of VAT hidden is consistent with how our government operates.

With the additional VAT and Numbers taxes government could hire threes young people.

Also with Carnival/Junkanoo it will give the something to do in their spare time.

Now that stem cell, web shops and VAT legislation is completed; education, healthcare and law enforcement can be given some priority.

You should start changing the prices on your 52 million inventory pieces now so you can be ready for January 1.

With the increased VAT revenue the government will improve the services we get from them. Eg. The lights will stay on, crime will decrease, children will now graduate from school and actually be able to read and write, the pot holes in the road will be fixed, the new hospital will be opened, government pensions will be secured and the national debt will be reduced dramatically.

Large foreign investment is coming in for stem cell research and the tax on web shops will help government pay for programs to help the poor.

Let's give our government a chance.