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Submitted by Old Onions Bag
Chris Sinckler, the embattled Minister of Finance

“the quality of mercy wanes”

Exactly what is hoped to be achieved by these draconian tax measures? It is about time gurus in the Finance Ministry wake up and see the results of their  ploy. Can Barbados ever be able to recover given the prevailing circumstances and no projected new revenue inflows? Why what then is hoped to be achieved by these continued, less than auspicious ‘undertaken’ methods…. a quick death for some especially the poor, old and degenerate?

A stage now has been set for pensioners and the aged to falter, that is, if the pseudo drugs don’t take them first. There is seemingly no reprieve for them who lodged all their survival savings in CLICO or  BAICO, now that they have both gone belly up. Whatever happened to all the talk of assistance in the form of a structured payment program to assist these aged? Why how much more time do they have ? We are soon moving into the third year since the CLICO debacle.  Some Barbadian families have no recourse but to support themselves and the elderly from saving, that are hitting bottom fast. Yet some continues on this path of high intake thru taxes, with no consideration for the plight levied on the back of citizen Joe…Gran dad in the one hand…Jenny and Jane graduates with no employment in the other. How do they expect poor Joe to cope?

It is a well known fact that high taxes in a time of recession will retard further what little growth an economy may have mustered….Why then the 2.5 % increase in VAT tax in 2011? We were told THEN what we are occasioning NOW,… would come to being, yet  we went ahead. Now the situation is worse. Unemployment has increased from 9% to 11.8% in less than a year and the economy has slowed down even further? What now?Shall they then attempt to remove the VAT in an all out effort to revive the economy or increase it further to 20% ? Why tell us economic gurus at MOF, as your postulates of past, at most, have been most difficult to fathom.


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154 responses to “Is Barbados An Overly Taxed Economy Or Not?”


  1. Why the last Budget did not attempt to address some of these problems, beats the hell out of sense…..


  2. look meck a long story short.the queen give wunna a chance to run this island they brought you to.YOU ALL HAVE FUC__ IT UP.
    you don’t get a second chance.also on her mind fore most is how to stop you all from going to England to live on the dole.
    ya got your independence for that reason alone.
    are you all brain dead?


  3. Moody’s downgrade the EU to Negative with a threat to download rating.

    http://www.bbc.co.uk/news/business-19472857


  4. onions
    It is a well known fact that high taxes in a time of recession will retard further what little growth an economy may have mustered….Why then the 2.5 % increase in VAT tax in 2011? We were told THEN what we are occasioning NOW,… would come to being, yet we went ahead. Now the situation is worse. Unemployment has increased from 9% to 11.8% in less than a year and the economy has slowed down even further? What now?Shall they then attempt to remove the VAT in an all out effort to revive the economy or increase it further to 20% ? Why tell us economic gurus at MOF, as your postulates of past, at most, have been most difficult to fathom.

    with an upcoming election the dlp position on vat is well known. but still waiting on the changes or proposals the blp will make on vat like everything else from vat to clice nuff talk but no strategy onions it is time you and the blp put up or shut up nuff soundbits but no substance nobody going to buy a pig in a bag.


  5. Everywhere on the planet is in a bind with a fundamentally broken economic model that’s on life support.
    We used to be told as long as I have been around and may be longer; that printing money brought collapse in Germany and the rise of Hitler.
    Printing money was an evil then but fast forward to today when we put a mask on and try to give it respectability by calling the same rotten and corrosive practice Quantitive Easing.

    Here in the UK and elsewhere we see taxes and prices rise dramatically while pay remains static and employment on the rise.

    I often said if I had a day’s lesson in economics may be I could see the picture in a different light; the picture that looked pretty dire to me.

    Back in the 1980’s a colleague remarked that he saw people who he knew earned a hell of a lot less than he did out shopping in Birmingham buying things he couldn’t afford.
    Another colleague, again a high earner with a wife who was also a high earner sat down one Sunday and put a pair of scissors through all their credit cards, not because they couldn’t afford to pay the bills but because they realised they were buying lots of stuff they did not need.

    We all realised back then that the “Good and Booming Economy” was a sham that would come crashing down one day and planned around getting clear of debt.

    The theory that our economic theories were sound and holding the failed Soviet economy as proof thereof

    S&P, Arthur, Obama, Romney or whoever have no fuel left to stoke the fire with, they burned their shirts, trousers, shoes and now putting the last piece of underwear on – when all hope is gone, do something, do anything, say a prayer or mumble something incoherent, all to no positive outcome.

    Could we be at the last stop on the road to economic oblivion, just rearranging the deck chairs on the “unsinkable” Titanic?


  6. @ Sid Boyce

    Sir, you have just summed up the global and local economic status quo in as concise and succinct a manner as can possibly be done.
    Amen!
    ….and the answer to your last rethorical question … Let’s throw Onions off the starboard deck….


  7. @Sid Boyce

    Inclined to go with your view.

    World economies which are structured to depend exclusively on services especially tourism continue to struggle in the protracted global economic downturn.The DLP philosophically has designed economic policies to create a drag on consumption spend which directly impacts forex reserves. That is this government has give priority to protecting the forex reserves. The BLP on the other hand enunciated by Mascoll believes we don’t have a forex problem but a spend problem I.e. we need to cut expenditure. Where we need to cut is not very clear.

  8. millertheanunnaki Avatar
    millertheanunnaki

    @ Sid Boyce | September 4, 2012 at 7:04 AM |

    So what is the alternative?
    You have just made out a good case for a major war involving many nations.
    Or do you, like BT, expect the soon return of the BBE?


  9. There need a minimum wage policy in Barbados of about US $3.50 , BoG can then reduce the amount of social services it undertake, and thereby reduce the heavy tax burden on the middle class and corporate Barbados.
    Such a move would better position Barbados to compete with Bermuda, Cayman and TCI for the much coveted high end international service corporations.
    At present hearing the talk about going after that market is a joke with the island bloated tax policies, but one must also be mindful that with such a large social services portfolio and no coherent minimum wage policy so that the people can fish for themselves BoG must maintain these high taxes to provide such social services. Look around and see how many large corporations are moving to low tax jurisdiction so to maintain a healthy outlook, yet Barbados cannot attract any of those companies that are looking low tax jurisdiction homes. Barbados like Bermuda, TCI and Cayman don’t have natural resources, just an island with it’s people and infrastructure, but unlike Barbados these islands have low governmental social services with a very low tax policies to middle class and corporations…(well TCI tax policies are about to change becuse the Brits took back up the islands).. Oh and by the way these islands have a minimum wage policy, which i say again Barbados need.


  10. Are we not all missing a most crucial part of this thread…..Are (some in more dire straits) not being overly taxed? If so are we are aware of their plights?Do we continue to overly tax them just in the interest of meeting Govt’s expenses? Why we just saw a certainly unnecessary AX spend of $600,000…how could this be justified? What about a $400,000 audi….what was that all about? Trips first class to any and all functions…Rio just the other day with a 11 man entourage ..yes to talk greening and water rise…Donville just went Timbubtu..foe what ?yet the OLD and destitute cannot get their medicine…..Are we aware that drugs for an average elder… forced to buy ‘good drugs’.. cost as much as $200 monthly? Drugs that the Drug Service don’t stock ….drugs for the heart…sometimes run as much as $500…..My ear was for these people and their families…..those whose 20-25 yr graduates can’t find work, forced to remain at home…could we not have some relief in our last Budget for these bread earners? Not as Sid Boyce….”recession all bout” reco. On aver. total taxes, duties and incenses here, I believe take 65% + of all incomes…soon what will happen when expenses continue to rise and taxes cannot meet the difference? What else is there to tax? Are we going to further increase?…Is this where we are heading?Come on man …are we seeing any CUT BACKS by Govt and its unnecessary spending….Me thinks not..how about you?


  11. @onions

    You are correct about the spend behavior of government which is endemic to the public sector. However where you are correct is that a new normal is required for the reason Sid Boyce explained.

    @waterman

    Agree with you to a point. Minimum wages come at a price. Secondly the regulation of offshore of the countries you mentioned are not as robust as barbados and allow for questionable business dealings.

    However you twist it this is an ecoc system which requires meticulous planning, some say we have reached the end of being able to maximize what we are able to get from the current economic model.

  12. millertheanunnaki Avatar
    millertheanunnaki

    @ David | September 4, 2012 at 7:54 AM |
    “Secondly the regulation of offshore of the countries you mentioned are not as robust as barbados and allow for questionable business dealings. ”

    That is a laugh! Regulation in Barbados is robust. Who is doing the ‘robust’ regulating? The Ministry of International Business? How come Bim is always threatened to be ‘blacklisted’ in its true sense? Why are the Bahamas, Bermuda and Cayman on the so-called White list?
    The quality of service and the general social malaise and indiscipline have a lot to do with Bim losing business along with the removal of the tax advantage it once had with Canada.

  13. millertheanunnaki Avatar
    millertheanunnaki

    The Ministry of Agriculture has issued public warnings to our people to prepare for big increases in the prices of imported food.
    They have also told importers not to engage in price gouging.
    So what is the Ministry’s response? To offer advice and seeds to Bajans to plant up around them and grow some plants for food. What a laudable move reminiscent of OSA and his fork in his garden.
    Well people the days have finally arrived when Bajans would be forced to do what Rosemary Parkinson, Brudah-Bim et al have been preaching about like Isaiah and Elijah in the wilderness.
    What is the Ministry doing about all the land under its ownership and control now overrun with bush, love vine and cow itch? Just talk about ploughing? What about leasing the lands to people for sowing tending and reaping before the thieves?

    SOS to Brudah-Bim: Report for duty and assist Rosemary in this coming fight for Bajan survival.


  14. @miller

    What is it about Bahamas, Bermuda and Cayman that Barbados is not?


  15. @miller

    However you twist it the chickens are coming home to roost. The model which served us in the boom is inadequate in times of now. Our politicians are operating with a mindset driven by times of old.

  16. millertheanunnaki Avatar
    millertheanunnaki

    @ David | September 4, 2012 at 8:35 AM |
    “What is it about Bahamas, Bermuda and Cayman that Barbados is not?”

    They don’t have an environment marred by indiscipline in all sectors of society; a physical environment littered with garbage abandoned and derelict vehicles and potholed streets strewn with detritus and bush and ruled by the laws of the vehicular jungle with the judge being the ZR man. Visit Bermuda and see for yourself.
    Neither are they beset by an obese public sector whose main objective is one of delay, inertia, obfuscation, frustration and an attitude that is the very antithesis of what business (especially international business) is all about.
    If you doubt me ask the CEO of Invest Barbados when he claimed this country in these very competitive of times lost out on potentially US$ 1/2 billion in FDI and 2,700 jobs to boot during the last 3 years while molasses is trying to climb Mount Hillaby.


  17. @miller

    What you left out is the fact that the three are colonies/annexed to developed countries. Also these countries have fully committed to building out a service sector, all the way. The three jurisdictions own the ‘market’ in global offshore.

  18. millertheanunnaki Avatar
    millertheanunnaki

    @ David | September 4, 2012 at 8:55 AM |

    That might have a ring of truth about it.
    And since we know the competition we are up against we must try much harder and try to simply be the best. We have billions invested in human capital unlike those ‘colonised’ states.
    What about Singapore? What do they have we don’t have from the outset? A disciplined society, for sure!. I am not advocating an entire Singapore model for Barbados when it comes to discipline and social behaviours but we could at least copy the parts that would see us improve a great deal and be a bit more competitive if not on price then on service delivery.


  19. @miller

    When comparing to the Singapore Model we cannot discount discipline, all of their successes flow from it.


  20. I don’t have a surefire answer or cure but it was a big shock to have had confirmation that the economists understood less about their subject than my colleagues or myself.
    They sanctioned borrowing and spend, they said the world economy was in great shape.
    We, the unknowing reined in on borrowing and spending, we said the world economy was in a mess.

    The learned economists were wrong and we were right.

    The leaned economists continue to preach a sermon that says we should all get back to where we were by following their same flawed remedy.

    I’ll see if I can dig out the article where one economist said for decades that the USA’s economic strategy was doomed to failure, much to the chagrin of almost all of his fellow economists. The last statement he made said the problem was not recent but goes back 50 years.

    A lone voice of dissent is often regarded as that of a fool.
    From my sceptical standpoint, my often stated reaction has been “eat filth, zillions of flies can’t be wrong”.

  21. millertheanunnaki Avatar

    @ David | September 4, 2012 at 9:15 AM |

    Barbados can be considered a wild and reckless place-even a Wild West -when compared to Singapore. Law enforcement and respect for the rule of law is seen in Bim as old hat, colonial in origin, and not the way to get rich quick. Breaking and disregarding the law even in our Parliament and in the corridors of executive government is seen as a rite of passage in order to be popular among a population allegedly freed from slavery and colonial shackles and independent to do whatever they like but not to own and control their own social and economic destiny. Just look at how many here on BU totally dismiss the laws and financial regulations on accounting and reporting for taxpayers monies as mandated under our Constitution just to score cheap political points by an attitude of “The others do it (broke the laws) so it’s we turn to it”. And to think that we are an educated people, par excellence!

    The cultural dynamics and political arrangements would never see Bim come close to Singapore as a “disciplined’ society and its concomitant burgeoning economy. For that to happen Bim would have to give up its growing cultural freedom of expression and its wild abandon social esprit de coeur. Can you imagine what recently took place on Kadooment Day with that young boy and two adults happening in Singapore? The abandonment of individualism (albeit seen sometimes as irresponsible) and expression of artistic and cultural idiosyncrasies in a population of mainly African descent is not a timetable that can be easily met in this growing melting pot of cultures unless some overriding dictatorial power of a BFPBAF or Bush Tea persuasion is imposed on the local simmering melting pot.


  22. …………a peculiar stance, but not the only one.We all cannot think alike, the book American Psycho really leaves you wondering a little bit about Bret Easton Ellis’ sanity. Many people are probably familiar with the movie starring Christian Bale, but the movie pales in comparison to the book when it comes to levels of depraved insanity. The book follows investment banker, and serial killer, Patrick Bateman over a few years of his life. As the book moves on his killings becomes more and more sadistic, leading to quite a few scenes that will never, ever completely leave your mind, including a particularly repugnant sequence involving a starved rat, some cheese, and a tube. You are guaranteed to feel a little filthy, at the least, after reading this book.


  23. Above comment directed to Sid Boyce.


  24. strategically so close to the US gives the bahamas a favourable advantage that Barbados does not have however there economy is still in shambles and poverty is epidemic prof of that is the number of people who lives rheir shores heading to america looking for employment.The taxes favour the rich while there is very little benefit to the poor


  25. until you watch this whole video you have no clue what is going on .http://youtu.be/EewGMBOB4Gg

  26. Some pointed questions............. Avatar
    Some pointed questions………….

    So many cliches.


  27. David and Miller,
    The Singapore mindset and discipline imbued by an iconic and insightful Prime Minister Mr. Lee bore fruit by the recognition that Singapore’s only natural resources were its people and for Singapore to succeed it needed a highly educated, highly skilled and highly motivated population.
    Education should provide a population with a set of tools for practical use and not learning for learning’s sake.
    Tools rusting away in the shed are of no use. When they are worn and dirty you know they have been used and with pride you and others should be able to admire the results of their use. Not only that, seeking better and improved tools to do even more and better should always be the goal.

    The only thing I disapproved of in Singapore was seeing the guys sitting on a tall building and waiting for the women to climb up with large loads of cement for them.

    Switzerland was another country where I saw a transformation – there were all these men standing around while this diminutive young lady was struggling to close the tailgate on a large lorry, then I realised she was the lorry driver – something that a few years earlier was unheard of.

    I never saw the conclusion of talks in Grenada (?) a few years ago when delegations were debating development of small island economies, studying Ireland and Singapore.

    You’ll see corporations with research centres and manufacturing plants in Dublin, Cork, Limerick and Galway where they make use of the highly skilled talent coming out of the Universities, likewise the same in Singapore.

    Our corporation moved into Dublin in 1978 staffed mainly by Irish graduates who were easy to train and were able to produce high quality large scale computer systems as well as contributing to the development of future systems.
    With retrenchment some of those guys and gals were moved to HQ in the USA, some to Japan and when manufacturing finally closed in Ireland many were assigned to software development. The corporation has been in Ireland for the last 42 years+ and still going strong based on the outstanding education system in Ireland that delivers talent.


  28. @Sid

    Thanks for sharing your insight, a classic case of what wide experience fueled by wide travel (exposure) can offer. The part of your comment missing is the system of government of Sigapore and how it has contributed to success.


  29. Regarding my last post — (112-78)=34 years.


  30. Hi David,
    Though some say the system of government in Singapore was harsh and curtailed freedom, it was more a case of intolerance to bad and slack behaviour.
    Out of that regimen, no doubt the would-be pimps and prostitutes of earlier times became teachers, professors, scientists, businessmen, entrepreneurs and engineers.

    Mr. Lee as a democratically elected politician ruled with an iron fist, not to be tyrannical but for the betterment of his people.

    You can contrast his style with many African leaders whose rule has been much harsher with tactics like murder as part of their grip on their countries, plus the sale of their assets cheaply to buy guns, then moving vast amounts of money into banks in Europe and North America rather than using their assets to offer their people a better life. Those assets sent abroad could only work for the countries receiving them and almost always completely lost to the overseas treasuries when they die.

    His speeches were an eye-opener, they explained the rationale and the goal of his policies – very potent, very logical and very positive.

    Mr. Lee never went to such extremes, in a phrase, he didn’t tolerate!
    That has set the benchmark for subsequent Singapore governments.
    I get the feeling that if Errol Barrow had been at the helm much longer, Barbados would have been up there or close.


  31. Thanks Sid this is the part of the conversation which is open for discussion when we try to fit learnings from Singapore. It was charisma led more than anything else.


  32. To Old Onion Bags,
    All governments seem to be riding the same untamed horse.
    Especially here in the UK where tax (not on the rich) is considered a solution to every problem, whatever that problem may be.

    There are so many imponderables that no one has an idea of what it takes to get the economies back on track.
    Romney saying he’ll create – was it hundreds of thousands or millions of jobs? – right, I hope he has more than 2 loaves and 5 fishes to work with.

    With the economy gone global, if you make masses of products with the extra people you employ they will most likely stack up in warehouses as the rest of the world has no money to buy them at the price you expect and back to the same jobless numbers.

    One country can’t be prosperous and the rest poor as Germany, India and China are finding out.
    The smaller the country and the more astute the policies it doesn’t take mass sales abroad to satisfy growth and prosperity at home but you must export vigorously what you make.

    Export drives have to be stepped up, e.g have never seen a bottle of Barbados rum on sale in UK duty Free shops and the only place I have seen it on sale was in Zurich.
    None either in Germany, Holland, Spain, France, Belgium, USA, Canada, etc., etc. where there must be a market – that’s a whole lot of opportunity.

    In addition to such produce, diversification of production is necessary, software production, bringing in foreign companies and make them stay by the quality of the products they produce in Barbados – quality, numbers, on time and have a hand in developing their follow-on products – that way they won’t leave for elsewhere where they can advance their operation.


  33. I cringe at the notion of having my freedoms taken away by any government acommandate materialism which when all is/said and done benefits thehigher echleon of society while the poor gets nothing and the rich gets all. the grass always seem greener on the otherside to the onlookers but those who have to cut it knows better


  34. To be the ass end of humanity, a waster, a beggar, a laggard and a bonehead are the indulgences of retards not freedoms.
    The rest of the world doesn’t owe any of us a living for being lack lustre, tardy and unimaginative.
    Singapore doesn’t have to hang out a begging bowl to neighbours China or Japan, they have true grit and pride and if it took a disciplinarian such as Lee Kwan Yew to goad them on to what he knew they were capable of, he did a fine job for which they are still very thankful.

    He shone the light and they followed, they weren’t rounded up and put to work as slaves. You don’t see Singaporeans stranded in leaky boats trying to make their way as illegal immigrants or as escapees from persecution to Australia for a better life or freedom.

  35. millertheanunnaki Avatar
    millertheanunnaki

    @Sid Boyce | September 4, 2012 at 3:32 PM |
    “To be the ass end of humanity, a waster, a beggar, a laggard and a bonehead are the indulgences of retards not freedoms.
    The rest of the world doesn’t owe any of us a living for being lack lustre, tardy and unimaginative.”

    Look into your crystal ball and let us know if that is what you see in store for Barbados if we continue on our present path. It must always be remembered that Barbados had a major advantage over Singapore in the 1960’s & early 70’s in every aspect of national development. Our pillars of development had already been erected.
    Ac would argue that Barbados is many times better off than Singapore. If only pigs could fly!


  36. Sid Elastoplast Boyce
    Cut the Signapoe and Japan or China slant…..we in Barbados can never be either..time to deal wid reality….this thread about the suffering of the poor n destitute occasioned by taxes HERE…I went to town and come back and you still on this “flea’s balls of a farting” that does nothing but waste thread….We on about TAXES HERE not what might be Signapoe if we were more like Japan…we dealing wid here, what can be done for the forgotten about HERE.


  37. Sid
    You can Sign-my -poe any day bruds….bring your pen n come


  38. millertheanunnaki,
    Excellent point you make.
    Definitely in the 1960’s and 1970’s Singapore was way behind Barbados in development.
    They depended on the British bases employing thousands on a week’s pay the average Barbadian could earn in a day. The shops, bars, restaurants and stores also depended on the troops for their trade.

    The British bases closed abruptly and their transition was swift.

    I was chatting with a friend I grew up with and we wondered what if – you moved all Barbadians with nothing more than the clothes on their backs to Singapore and likewise moved all Singaporeans to Barbados and went back to both places five years later what they would be like – we guessed unrecognisable from the present both in infrastructure and development.


  39. Kicking Bully what has Sid done to you? Man yuh looking fuh blood nuh?

    Sid I totally agree with you and we should come to this reality we are too undisciplined a nation to follow any model.

    Until we as a people develop an inner strength to do what is right and what is just for this island we will be always at someones door with hat in hand. We have no shame when begging.


  40. Bahamas is not a colony to any developed country, it is an independent nation like Barbados. What is fueling Bahamas economy is the casino industry which target market is the visitors. Locals can only work in the casinos but can’t participate in gaming


  41. Bahamas is practically annexed to the USA.


  42. we can all admire these countries from afar even close up and personnal . these governments educate their people with one thing in mind that is to exploit them throw them a bone and brain wash their citizenry into believing that they have it better those who have lived under those totalitarian or socialist regime will say different but within the belly of the beast is a govt only looking out for it self while chipping away at their peoples freedom to keep them silent


  43. Hey Mr. Sid Lova Boy Boyce
    Is this the same Singapore you wants us to mimic? GET A LIFE DUDE…..not on ya life


  44. CHINA Worse…ask Sandi……


  45. Shittin Bull leff Sid alone fuh muh puleeze!


  46. Here we go, having a conversation, exchanging ideas and finally we resort to sound bites to make points.


  47. i admire the fact that singapore can make it big but i hate the fact that they would sell off their citizens,to the highest bidder .they educate there people so that outside investors can take advantage all the while the govt is sleeping in bed with them. where is the peoples best interest in all of this. is it a govt for the people or is all about corporate greed at the citizens expense who toil and grind effortlessly with little or nothing to say or show for it and a govt with a mindset of all well that ends well. would bajans appreciate such decadence for the rich while the rest of us lived in poverty.


  48. What shittin Bull what?!
    Old rotten Onions by any name smells the very same….:)

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