Yesterday I asked for ideas on what our readers would do to help sort the country's economic woes out.
These were my two quick ones:
1. Set limits on tax levels as a percentage of GDP, possibly even a Constitutional amendment.
2. Give BahamasAir to the management and staff. That's right, give it to them, lock stock and barrel but with no subsidies going forward. Get the albatross from around our necks.
Here's a few of the ideas received from our readers so far:
First:
I would Have dropped the duty rate to 15 or 20% flat across the board.
Is this not one of the consequences of WTO accession?
Lets say duty on Plywood is 20%.
Ordinarily, any duty changes are secret until spoken, and enacted when spoken.
Secrecy because, if you knew that it was going to 40% you would rush out and buy, as a consumer or stocker.
But, once it has gone up, sales drop, therefore less is ordered and imported. Their revenue drops also.
Inversely, if warning was given, yes, people would import or buy ahead of need. This is called planning. Investing.
Guess what? Even though the rate is lower, the governments revenue would increase, and increase on the movement of money that is invested in plywood, that otherwise would not move.
Is not the aim to stimulate the economy? What is an economy if not simply Money moving?
Second:
Legalize numbers
Raise the price of non essential goods like junk food. Raise the price of passports. Put heavy duty on foreign goods that could be grown or produced here, ex: bananas and foreign beer.....not local beer. Raise the price of work permits and stop giving so many!"
Third:
Reduce interest rates, and if I borrow, to invest in local business only. Tax all the properties that foreigners are holding on to and doing nothing with. Government audit on waste.
Fourth:
Improve public transport system.
Fifth:
First of all, I'd resign. Don't trust anyone given that kind of power for a day!
Sixth:
Instead of giving foreign investors "duty free" concessions, give them a reduced rate of duty or a set rate of duty i.e. 25% or 20% across the board. Imagine the revenue this would generate for our Country in one year!!! I could give you figures for Abaco alone that would BLOW YOUR MIND!!! Then the Bahamian people wouldn't be taxed to poverty! 'Cause I'll tell you what...the investors come in, make their fortune, then away they go!! Just as was done @ Winding Bay, the Land was given to them and was then resold for multi-millions of $$$$$ NOT RIGHT!! I don't care how you slice it. No amount of jobs can out weigh the revenue that's lost. ....that's my two cents!
Seventh:
I thought that it would have made sense to raise the import tax on USED vehicles rather than the new ones to encourage more fuel efficient and more environmentally friendly vehicles.. That's something I just can't understand!! Why raise the duty on New vehicles????
Eighth:
One would have also thought that the government would encourage motor bikes, or bicycles, but no, the duty on them is & has been in the 70 % range,how stupid is that?
I would caution against "taxing foreigners" because we can. Their benefits are unseen, but your tribe might be next :0), but so far some good ideas to add to the mix.
Do you have anything to add?
