The Bahamas Government is implementing a Value Added Tax (VAT) come July 1 this year with talk of implementing an even larger welfare state with the introduction of socialised medicine.
These are policies that other countries implemented more than 25 years ago. But these countries, once held up as shining examples are now having to face the music and cut back.
The Recent Scandinavian Experience
"The Nordic model, known for high taxes and its cradle-to-grave welfare system, is getting a radical makeover as nations find themselves cash-strapped." More...
The Recent French Experience
"More than 70 per cent of the French feel taxes are “excessive”, and 80 per cent believe the president’s economic policy is “misguided” and “inefficient”. This goes far beyond the tax exiles such as Gérard Depardieu, members of the Peugeot family or Chanel’s owners. Worse, after decades of living in one of the most redistributive systems in western Europe, 54 per cent of the French believe that taxes – of which there have been 84 new ones in the past two years, rising from 42 per cent of GDP in 2009 to 46.3 per cent this year – now widen social inequalities instead of reducing them." More...
Economic Freedom
Simply put, these policies are unsustainable.
So what is the answer? Well, economic freedom is.
According to Free the World.com;
"Economic freedom has been shown in numerous peer-reviewed studies to promote prosperity and other positive outcomes. It is a necessary condition for democratic development. It liberates people from dependence on government in a planned economy, and allows them to make their own economic and political choices. For information on the effects of economic freedom, please see papers. " More...
Will the government of The Bahamas consider reasonable alternatives or have they put blinders on to the fact that reasonable alternatives exist like economic growth strategies? Or will they forge ahead with outdated policies like VAT and socialised medicine causing more economic destruction?
