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Bahamian Politics Last Updated: Feb 13, 2017 - 1:45:37 AM


DNA: Over Taxation Hindering Economic Expansion
By Branville McCartney, Leader, Democratic National Alliance (DNA)
Mar 5, 2015 - 2:26:45 PM

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Since coming to office, this Christie led administration has managed to abandon or renege on most, if not all of its 2012 general election campaign promises. After promising on the one hand to believe in Bahamians, this government has done the exact opposite; relegating our people and our culture to the political back burner. After promising to improve the quality of life for all Bahamians through economic stimulation, this government has again failed at key components of that economic strategy including job creation.

It is a universally accepted idea that the most effective way to spur real economic change is to stimulate small business and innovation by lowering taxes. The government’s inability to provide true economic empowerment for the people of this country is compounded by an apparent desire to tax the nation’s middle class into poverty and obliterate any real chance for economic expansion.

In its Charter for Governance the PLP, then in opposition, promised that if elected they would decrease the overall tax burden. In June of 2012 State Finance Minister Michael Halkitis repeated that promise assuring Bahamians that the government would impose no additional taxes. The implementation of Value Added Tax (VAT) on January 2015 however, proved that those promises were nothing more than hollow, empty words.

Even now as the citizenry of this country grapples with cost of living increases associated with (VAT) this government is plotting to further increase the tax burden on already struggling Bahamian families; this time as part of efforts to fund National Health Insurance (NHI). Reports have suggested that the new tax could be implemented in nine months.

Discussions surrounding the implementation of NHI raises a number of important questions. For example, who if anyone will be responsible for overseeing the initiative to ensure that fraudulent claims or general malfeasance does not occur. So far, the government’s track record for warding off corruption has been dismal. We have seen when it comes to money, the PLP has a problem. Even as they plan the transformation of public healthcare, Bahamians are still in the dark about the missing millions at the pharmacy at PMH; this despite countless investigations and reports detailing the corruption. Another key question to be answered is what role, if any, will private healthcare insurance providers have in the implementation of this new initiative and what effect will it have on that industry. Perhaps the most important question to be asked though, is HOW the government will fund NHI? If additional taxes are to be introduced, who will be responsible for ensuring that the collected tax are in fact used for the intended purpose?

So far, no one, not even the Minister responsible has been able to provide satisfactory answers to these very important questions. Instead Dr. Gomez’s taxes are better than death position has left a sour taste in the mouths of many within the electorate.

The Democratic National Alliance has no confidence in this government’s ability to implement such a plan in a way that is efficient, transparent or cost effective. One need only look at projects like the multimillion dollar BAMSI initiative which has seen millions of dollars in taxpayer funds go up in smoke literally and figuratively. This Christie government has yet to prove itself able to properly manage government resources, and in time when resources have become even scarcer, this is UNACCEPTABLE!

The DNA has long called for tax reform in addition to increased transparency and accountability in the spending of public funds. Instead, PM Perry Christie and his cabinet continue to ignore this very pressing issue and have put forth no actual efforts to overhaul the current tax structure and have imposed even MORE taxes without also providing the benefits of a Freedom of Information Act as was recommended by the government’s own tax consultants.

Rather than increasing the country’s tax burden for a second time during this term in office, the Christie administration must work to fulfill its promise of economic empowerment through new industry and more focused job creation efforts.

What this country needs is a model of progressive taxation as opposed to the coercive and burdensome model we currently endure. No longer should the tax paying citizens be forced to shoulder the burden of poor fiscal management on the part of this or any government. The country’s economy can no longer support this type of governance. NOW IS NOT THE TIME to raise taxes. We, the people simply cannot afford it.

Branville McCartney
DNA Leader


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