This link to posts of three excellent videos by Dan Mitchell of The Cato Institute prepared for the Center for Freedom and Prosperity talk about the Laffer Curve and the effects of taxation on government revenue.
There is a point where people have had enough of high taxes and find ways avoid paying it. They feel that government is taking their hard earned money.
With this in mind, The Bahamas set out to remain a low tax jurisdiction where Europeans, Latin Americans and North Americans could invest money without paying income tax when they want to avoid paying taxes back home.
Banking and Tourism are the mainstays of The Bahamian economy to this day.
What is ironic however is that The Bahamas government believes that they can charge whatever amount of tax, be they Import Duties or Excise Taxes, and think that Bahamians will always pay.
Could this be where the allegation comes from that many Bahamians pay the Customs Officer, but don't pay the Excise Tax?
The latest video from Dr. Mitchell and the Center for Freedom and Prosperity speaks to the problems associated with higher taxes.
