Why is The Bahamas tax system 'maxed out' and what to do about it?

Joan Thompson

The problem is not complicated.

Governments are too big and too involved in areas of life in which they ought not to be involved. There seem to be no limits, and the public in its ignorance keeps asking for more.

Why is government building a straw market? When we fully understand why, then we have the answer for why the Bahamian government grows and why it will continue to steal some of the fruits of our labour the percentage of which will continue to increase.

The problem with a "flat tax" is that it is a tax based on income, therefore it is an income tax - which opens up a Pandora's box of evil nasties. There is no way they would ever limit it to 17%. A VAT is just as bad.

One of the attractions to investors is the "no income tax" statement. Whether it is as important as in the past, I cannot say.

Certainly a "low tax" policy is an attraction worth pursuing.