The Bahamas needs a more progressive, less rigid tax system, according to international credit rating agency Standard & Poor's (S&P).

A recent report compiled by S&P concluded that the nation is overly dependent on taxes on international trade and transactions, which bring in roughly 60 percent of government's tax revenue. According to S&P, the current tax structure hampers economic growth by imposing high import duties and preventing a higher level of trade integration. In addition, it exacerbates the risks inherent in the already-narrow Bahamian economy, in which tourism-related taxes account for another 10 percent of government revenue.


http://www.thenassauguardian.com/bixex/351454510492855.php

Even S&P is on our soap box!

Even S&P is on our soap box!
Yup. :hammer:

The report also lamented what it termed "a general consensus against the introduction of direct taxation," and singled out Barbados as the only country in the region to introduce a VAT.......

The economy also depends too heavily on tourism, exacerbated by a strong reliance on the U.S. market, which provides more than 80% of all visitors. Tourism accounts for 60% of The Bahamas' gross domestic product (GDP) and employs more than 60% of the labor force.

S&P is pointing out the obvious - at least obvious to any one with two operating braincells.

we must be need to work for S and P

We have managed to build one of the most successful, stable, economies in the "third world" (I hate those words.) And we did it with the tax system we have.

The only reason the "big boys" want us to have a tax system is, with a tax system like they have it is easier to keep track of the money - particularly, money that belongs to their citizens that are living here or "hiding money." Do you really think they are worried about us and our economy?:)

No CG,

They are not worried about us and our economy. I agree with you on that.

Here is the rub though. Our country is growing by leaps and bounds. We will not be able to finance the infrastructure projects we need though all of the islands using our current customs duties system.

We could continue to borrow from international banks, but look where that has gotten so many other "third world' countries (I dislike that term too).

It time to get a decent system of taxation going. We can still be a low taxation jurisdiction with a sensible tax system. Companies pay huge taxes in Europe, Canada and the US. They would flock to a buisness freindly country like the Bahamas for tax rates like 2-3% BECAUSE of our stable economic/political environment and experience in finance/ banking.

Tingum and I once discussed what would happen if the new law in the US COngress to increase the tax on Hedge Funds passed into law. The Bahamas could woe them with the promise of just a 1% tax on gains and make BILLIONS a year. They would save nearly 29% over what they pay in the US.


Its time we started using their weakness in OUR favor and using our gifts (offshore banking/ finance) to fund our future. :tup:


*Asks CG what kind of organic juice he wants from the tuck shop- Inquires after his trees).


~~~

No CG,
They are not worried about us and our economy. I agree with you on that.
Here is the rub though. Our country is growing by leaps and bounds. We will not be able to finance the infrastructure projects we need though all of the islands using our current customs duties system.
We could continue to borrow from international banks, but look where that has gotten so many other "third world' countries (I dislike that term too).
It time to get a decent system of taxation going. We can still be a low taxation jurisdiction with a sensible tax system. Companies pay huge taxes in Europe, Canada and the US. They would flock to a buisness freindly country like the Bahamas for tax rates like 2-3% BECAUSE of our stable economic/political environment and experience in finance/ banking.
Tingum and I once discussed what would happen if the new law in the US COngress to increase the tax on Hedge Funds passed into law. The Bahamas could woe them with the promise of just a 1% tax on gains and make BILLIONS a year. They would save nearly 29% over what they pay in the US.
Its time we started using their weakness in OUR favor and using our gifts (offshore banking/ finance) to fund our future. :tup:
*Asks CG what kind of organic juice he wants from the tuck shop- Inquires after his trees).
~~~

My only concern is how long would it stay at 2-3%? Once our government fellows get their hands on all that "free" money it would not be long before we were paying double digit numbers.

I am thinking of my Grandfather in England, at one time he was paying 98% of his income in taxes! (He was in the higher income bracket) Unbelievable, but true. So he got in a bunch of lawyers and accountants and before you knew it he was paying 1%.

PS. Trees doing good!

I've seen many good and some great ideas posted on this site but how do we move any of it forward into actual implementation?

We have managed to build one of the most successful, stable, economies in the "third world" (I hate those words.) And we did it with the tax system we have.
The only reason the "big boys" want us to have a tax system is, with a tax system like they have it is easier to keep track of the money - particularly, money that belongs to their citizens that are living here or "hiding money." Do you really think they are worried about us and our economy?:)


in a way yes they are worried about other countries economies. it is a fact that when third world countries economies start to tank 1st world nations then have to take on the responsibilty for all that countries fleeing citizens.

the tax system the bahamas has in place now will fail when the populace starts seeing citizens in the 700, 800, 900 thousand range.

if you look closely other countries tax you on the same dollar 3 and 4 times