Dr Michael Howard’s many questions were recently answered by the Barbados Economic Recovery Team (BERT) economist, Dr Greenidge.  Hopefully he can answer our single question.

Let me first state that BERT’s austerity-based solution will likely work.  The austerity is supposed to be very severe, for as long as it needs to be until it works, which is expected to be many years.

The severity and duration of the foreseen suffering of the Barbadian public was the only reason why we designed a non-austerity alternative.  When we tried to share it with the last administration, we were promised that the only way it would be heard is if we entered the political trench.  We naively believed the promise, entered the trench, but were never allowed an opportunity to be heard.

To our knowledge, two other entities independently designed non-austerity plans, resulting in three non-austerity plans on the proverbial table.  But Solutions Barbados was the only entity that entered the political trench.

We now have a new administration and a new promise by a new Prime Minister.  Her first directive was that all ideas should contend.  Therefore, our question is: why has BERT not allowed a review of any of the non-austerity plans?  If it was an oversight, then since Dr Greenidge seems to be the BERT spokesperson, can he spare 2 hours to meet with us to assess our plan?  If he is too busy, then can he authorise a non-partisan accountant and/or economist or a panel of them to review our plan?  If it was not an oversight, then why is BERT violating that prime directive?

I am fully aware that Dr Greenidge’s traditional training would not likely have included non-austerity methods, much a surgeon’s would not likely have included alternative natural methods.  Therefore, let me suggest an analogy to hopefully spark his interest in what he may not know.

Let’s say that there are two main approaches to treating cancer.  The traditional more popular surgery, drugs and radiation (chemotherapy) which traumatises the body, and the alternative-health natural remedies mainly consisting of herbs, diet and exercise, which do not traumatise the body.

The traditional medical practitioners have convinced the Government that theirs is the only way to treat cancer, despite the proven success of alternative-health methods.  Therefore, traditional practitioners receive all of the national health budget and prestige, and are viewed as credible.

Traditional medical practitioners are not normally trained in alternative health methods.  However, rather than learn about them to improve patient-care, many use their prestige to irresponsibly ridicule what they do not understand, and dismissively reject alternative-health practitioners as persons on the fringe.

When we were facing economic ruin, the traditionalists recommended the only thing that they understood, namely, traumatic austerity.  Others designed alternative non-austerity non-traumatic solutions.  Dr Greenidge is urged to resist the temptation to be close-minded on this critical matter.

Since I may not get another shot at this, let me try to reason with him.  This may be a hard task since he may still be euphoric that an agreement appears to have been reached with the IMF, and he has the support of the private sector and unions, who are trying to convince us that the austerity that we are about to experience in exchange for an IMF agreement is unavoidable.

He should be aware that IMF personnel also agreed with our non-austerity plan, but they thought that it contained a fatal flaw.  They said that it depended on the unions’ support, and based on the unions’ adversarial relationship with the DLP administration, they thought that the unions would never agree.  However, we met with the NUPW, BWU and CTUSAB, and all three agreed to participate.  Therefore, the IMF’s singular concern was effectively resolved.  Mr Greenidge, please allow both ideas to contend – for the public good.

Grenville Phillips II is a Chartered Structural Engineer and the founder of Solutions Barbados.  He can be reached at NextParty246@gmail.com

160 responses to “The Grenville Phillips Column – Violating the Prime Directive”


  1. Who says government is a continuum? Is this a new theory of political science, or just waffle?

  2. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    (Qoute )Barbadians had some goals in the 1960s, 1970s and 1980s. And they knew that there is a link between work ethic and growth. However, during OSA´s reign Barbadians changed their attitude. (quote)

    Under OSA we did well if you consider some of the yardsticks and matrices that some say matter.

    You said we lost our soul? But have any leaders since OSA dared to speak the truth to the ppl. Because the lost souls kinda out number the righteous souls. We have established a new norm that no politician is willing to oppose.

    We are fooling our self. The economic model we are pursuing is not to our benefit. For in every economic model there are programmed winners and losers, before the race starts; its only after the start will you realise you were never destined to win.

    We need true leaders not defrosted or reheated hornswogglers that we will tend to get.

    IMO our PM is a politician first, and a leader of the country second. As we are lead to believe “we do what it takes to win elections then u concern yourself about governing”. That approach is riddled with lies and untruths to which you later want citizens to trust you after you take over governance?”

    Most of us went to school so that we can identify the tricks the political parties come with at election time and before. We the electorate may have moved on the political class seems to be stuck in the past; we needs leadership cut from a different political cloth.; and not necessarily yellow/red or blue/yellow in colour.

  3. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    (quote) The world’s biggest competition is between sovereign nations to collect tax? They really do not care about anything other than collecting, and the flip side, of when they do not get to collect. This is why the incidence of consumption based taxes has grown everywhere, it is the one tax governments seem capable of collecting. (quorte)

    It will become a race to the bottom. So stop rethink what revenues u will be collecting if tomorrow a Bajan Inc can re-locate to Saint Elsewhere and take with it a portion of the after tax revenue that you where planning to collect in the three to five year development plan. Man u can have ease of business and on-line tax filing and on-line eva-thing but if i can pay way less taxes in Saint Elsewhere i will probably locate there. Capitalism has no root in nationalism once profit maximization is the doctrine.

    I say introduce a zero corporate tax rate; let any ands evvery corp entity take home all there profits with them. The answer is to tax them on their domestic revenues, it is impossible to sell in barbados and make a profit unless there are revenues.

    Re Re – Rethink and Re-Purpose so you can Retain and Remain a prosperous society.l


  4. Companies can manipulate revenues sirFuzzy?

  5. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @ David September 13, 2018 5:15 PM

    Yes they can, but revenues are almost always larger than profits. 10% of a bigger pie means more for the tax collector.


  6. @ Hal
    You are absolutely correct .

    @ David
    You have always used 2008 as your point of reference. You were the first person I heard spouting nonsense about a “lost decade”. We have lost at least “five decades”.
    Another mistake you make is the belief that people who contribute to BU only started to take an interest in our country’s affairs from the Stuart era.
    Hal Austin can tell you that as youngsters we were exposed to some of the most brilliant minds the country has ever produced and even back in the late 60s , they had identified all the problems we would have faced today.
    So, you need to stop pretending that some fountain of knowledge of history magically sprung up last week.
    Whether you like it or not, the IMF is nothing more than an agent of ruthless imperialism.
    All of your regurgitation of the empty mouthings of the political class means absolutely nothing right now.
    At this stage we are not truly masters of our fate.
    Let us try and assist the government in whatever way we can but dont expect no free pass from those who think for themselves.


  7. GPII go have a seat. Bajans too “pretensive” (🤣), know Grenville talking a lotta RH and continue to encourage him. I saw him hot and sweaty trying to show up the integrity committee with the same silly question he raised here on BU–shown to be wrong here and there. Only an idiot could continue to argue that austere measures are not needed.


  8. And then Skinner and Hal Austin, two pompous glory seekers. Stuuuuupse!

  9. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    When we look at Google Apple MS all off shoring their profits; i think my light bulb goes off. I perfer to think outside the box, where they are few person than being inside the crowded box.

    We also see the USA considering special legislation to encourage the return of the profits now offshore. One thing comes to mind. The corp sees that money(profits) as their and they will pursue any legal scheme to keep as much of it as possible. They will modify the tax code by lobbying the legislator to allow them maximise profits even if it screws another industry.

    A lot of work takes place to maximise profit. Some companies due to the taxcode can end up paying no taxes although making roughly the same revenue. Govt collects payroll taxes (NIS Social security etc) They take it form teh top line not the bottom line of the individual. Income tax is usually taken from the top line with the netting offer occurring at the end of the year via tax refunds if applicable. But they collect taxes on your gross income/revenue.

    A revenue tax on corps can work but no one is willing to try. because politician are only really good at talking nuff shyte and doing little to reposition this country as it faces dwindling corp taxes etc.


  10. You can believe what you want, the blogmaster has that right as well.


  11. Now i mention China having a workforce that is productive that most of the world would wish “if only” all brought about by an educational system that had a vision that would force the world to coming knocking at their door
    China did not gain economic power by begging or knocking at the door of America for loans.
    China took an initiative one built on an educational system construct it into a strategy that would be constructive and productive with an ever changing global economy
    Barbadians for the most part tend tobhave a mentality to be critical of countries that are light years and more advance in every sense of the word
    Hence you have some duffus here who would only see Chinas advancement through political lenses rather than zoom in on China ability to use their educational system to be one of the leading economic powerhouses in the world
    No wonder barbados is heading towards the poor house albeit like beggars sitting on the IMF door and singing their praises


  12. Mariposa,

    China is China and Barbados is Barbados.

    Barbados can only work with the people on board. Barbados does not need so many gov institutions, so many statutes and so many crooked lawyers. 52 years copying the North turned Barbados into a fake state.

    What Barbados needs are solutions fitting to the tropical climate, to the tiny size and to the people´s minds. This means less American lifestyle with trucks, SUVs, fast food, coke, villas and offshore accounts in Florida, weekly trips to Miami and obesity, but more overall hapiness.


  13. how many sweat shops can china produce compared to Barbados?


  14. Now listen up many if them cheap products that the society is buying come out of China sweat shops
    Most likely John you good a couple or more that u have found good use for
    Btw China sweat shops are a result of corrupt govts worldwide along with greedy foreign business and their explotation of an educated and productive workforce
    Here in Barbados there is a workforce label an occupation of sluggers
    Now which of these two occupants would u prefer to build your country

  15. millertheanunnaki Avatar

    @ sirfuzzy (i was a sheep some years ago; not a sheep anymore)
    September 13, 2018 5:43 PM
    “A revenue tax on corps can work but no one is willing to try. because politician are only really good at talking nuff shyte and doing little to reposition this country as it faces dwindling corp taxes etc.”
    +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

    We can agree that this method of tax asssessment and collection might be the most efficient option.

    But you must remember that corporations do not pay taxes; they merely collect from the final payers, the consumers.

    Would you still recommend that dividends be subject to tax in the hands of the shareholders- both indvidual and corporate?

    Very few accountants would back this simple straightforward proposal; not even GP1 (Grenville’s dad). For it would put them out of business and ready for the dump heap for professions (like those of the apothecary and priest) as a result of the fast spreading virus called ICT and driven by AI.


  16. If you would only try to understand the question!


  17. BA,

    Maduro looks like Big Sinck´s big brother. Both ruin their countries, have a very limited intellect, are the outcome of failed education and drive people into suicide through their economic policies.


  18. Barbados is now like Venezuela, but without oil.

    Thanks to Barrow, his many faulty visions, his lunacy of a 2:1 peg and his party.


  19. Tron u need to put a big cork in your mouth cause the crap you speak only makes sense to u


  20. i read a book some time ago, the title escapes me, that tracked the demise of Argentina (the first one, not the fourth), mexico, the Asian financial crisis, Greece, japan, Zimbabwe etc. the writer’s take was that government(s) had pursued a combination of policies that took thriving economies to their knees. the policies were (are) 1) a currency board (artificially set exchange rate) 2) populist policies of giveaways for votes 3) local currency printing 4) high deficits 5) protectionism of local uneconomical business. in each example NO country needed more than three of these to guarantee failure. as near as i can tell only Barbados has enthusiastically pursued all five. you can add pre-thatcher England to that list, and look up what happened to the pound before she “righted” the ship by undoing socialism.


  21. Brilliant, Tron! We got to be we and not try to be Americans. That is the beginning! And maybe the ending.


  22. Tron, if it sounds like crap to Mariposa you know for sure you’re on the right track.


  23. bite? bert has growled yet. the policies of big chris on top the the half right policies of his predecessors is going to make the past 10 yrs seem like utopia. im assuming no-one has googled “greece”. you dont go from 170% debt to 60%, even in 15yrs and even assuming it is possible without major pain. big chris took us on a warm-up lap, the game hasn’t even started yet. btw when the imf itself uses the word “difficult” you should know what to expect.


  24. It would be madness to leave the young people stranded unless something better is being set up for them.


  25. @fuzzy
    Taxing revenues is not outside the box, what do you think VAT is? And it goes by a host of different names around the world.
    Conceptually is sounds nice, yet despite claiming to have independent opinions which support his tax plans, GPII has continually failed to produce them, beyond saying they have been subjected to “rigorous discussion”.
    Bermuda imposes heavy import duties, but has no sales or income or corporate taxes (though they did institute a payroll tax), which duties have a similar effect to a consumption tax. They have property tax and a charge to corporations.
    This is not a concept one can use for the IBC’s? And a nightmare for consolidations in larger corps, in fact, on the surface, a possible reason to establish home base elsewhere. Much easier to consolidate a Bajan operation into their others, rather than vice versa. But accounting isn’t my forte.

  26. Piece Uh De Rock Yeah Right Avatar
    Piece Uh De Rock Yeah Right

    Once again de ole man will make this observation.

    Grenville Phillips II does not deign to attend to this his post on Barbados Underground.

    He is not even in the category of a George C Brathwaite Political Cuntsultant and the latter at lease comes back to his vomit sometimes

    Bloggers here need to let Grenville Post his shy#Te and leave it for what it is

    The Sin of Onan spilt upon the ground.

    The man has delusions of grandeur and is of the misbegotten belief that his utopia will work.

    Leae the man alone and search for another.


  27. Why don’t we cut the crap about Barbados is not a tax haven, but a low tax jurisdiction, and focus on becoming the best haven in the world? While Bim had a late start, the Canadians gave it a gift horse with legislation in 1982 (?). Since then? Either jump in with both feet, or get out.


  28. We talk a lot about the private sector, especially William. What does it take for a private sector to deliver on its mandate besides froth?

    Ranked:12 Best Economies to Start a Business 2018

    Over 70% of global businesses have implemented reform in the past year.
    Data suggests New Zealand is the number one economy to start a business in 2018.
    Economiesin Canada, Hong Kong, Georgia and Jamaica found to be2018 start-up hotspots.
    Of all economies analysed, Kosovo and Uzbekistan have experienced the most growth2017-18.
    The UK ranks 14thin ‘economies to start a business 2018’ – a 0.12% decrease on figures in 2017.

    NEW DATA suggests the global business regulatory environment has changed dramatically in recent years.

    Per the World Bank Group, 119 of the 190 economies measured in the report Doing Business 2018 have enacted at least one business regulation reform in the past year.

    Of these, 79.8% implemented at least one reform for a second consecutive year and 64.7%have done so for a third.

    https://www.globalbankingandfinance.com/ranked12-best-economies-to-start-a-business-2018/amp/


  29. NA i couldn’t agree more!! we half do everything. good enough, is good enough. always making excuses for ourselves. WTF does cayman, bermuda, USVI have that we don’t? we just can’t get anything done good enough enough to compete against others, and it is entirely our fault…not americas, not the former colonial masters…us! get in the game and lets get serous about being the best “low tax jurisdiction” in the would. im assuming people would prefer to reside here than some sandbar. but we won’t talk real solutions, lets look bad and blame, talk “big ideas”….here is a big idea give the canadians everything they could want in an offshore “low tax jurisdiction” then smile and welcome them when they come.


  30. “here is a big idea give the canadians everything they could want in an offshore “low tax jurisdiction” then smile and welcome them when they come.”

    Dumb idea…why?? ALL the Canadian criminals will line up, come in and guess what??….commit crimes..lol


  31. How short our memories, has everyone forgotten Del Mastro, Donville Inniss….Loblaws who got whatever they wanted since 1992 and used the island since then for a bank which was not a bank…..the 4 Canadian companies convicted for crimes in other juriductions whose names Donville is still keeping secret while he stares down at his shiny new pretty ankle bracelet provided him by the FEDS in the US..

    The days of giving Canadian criminals whatever they want are over, they already got whatever they wanted, billions of dolllars worth… when will yall learn..

    How quickly every forgets.

  32. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @ millertheanunnaki September 13, 2018 9:16 PM

    We can agree that this method of tax asssessment and collection might be the most efficient option.

    But you must remember that corporations do not pay taxes; they merely collect from the final payers, the consumers.

    (In the really real world consumers pay all the taxes. These taxes come in the form of prices we pay. Actually if the Corp decided it want more profit i can increase prices too as well without any justifiable increase in input cost. I hear your cry; but in the end THE ENDUSER/CONSUMER PAYS ALL THE TAXES IMPOSED)

    Would you still recommend that dividends be subject to tax in the hands of the shareholders- both individual and corporate?
    (Initially Yes, dividend income will be taxable. We can keep the current rate and tweak it as time progress to make the rate idea for us in Barbados)

    Very few accountants would back this simple straightforward proposal; not even GP1 (Grenville’s dad). For it would put them out of business and ready for the dump heap for professions (like those of the apothecary and priest) as a result of the fast spreading virus called ICT and driven by AI.

    (Our education system is looking towards STEM not STEAM(Science Technology Engineering Accountancy Maths) lol

    (In am old enuff to see the fall of the donkey as a major mode of propulsion; the ICE is becoming under threat from Battery Electric Vehicles and Fuel Cell Vehicles; Solar PV and wind may replace fossil fuels;

    I look forward to the day water storage becomes the norm(as done in Bermuda) thus easing the pressure on BWA and our individual; pockets) Times change and old tech and ways give way to new tech and new ways.

    Do you know if FCV become popular that Water(h2o) maybe the source material for making it. The future make be bright for island states; but we must be willing to change and change in the right ways no the wrong ways.

  33. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    When we talk about Bermuda we pay a lot of attention to what it has done so well in the tourism and international business industries. But very few of us pay attention to what Bermuda has accomplished in the world of water management. Bermuda is as water scarce as we are.

    The difference is that they recognize it and are doing something abut it. We just seem to want to talk aloooot about it. We procrastinate for it is good to do such?

    Bermudians store plenty of the valuable rainfall they get I tanks and cisterns etc. By in large they have a very good system. Bermuda is part of the Commonwealth of Nations, I am sure we can learn some other thing from bermuda alongside IBC and tourism tricks

    A BBC podcast can be found at https://www.bbc.co.uk/programmes/p04m747j

    Just my thoughts

  34. peterlawrencethompson Avatar
    peterlawrencethompson

    @ sirfuzzy (i was a sheep some years ago; not a sheep anymore) September 13, 2018 5:43 PM
    “A revenue tax on corps can work but no one is willing to try.”
    +++++++++++++++++++++++++++++++++
    This is completely untrue. Revenue tax on corporations is commonplace. Think it through… a tax on the revenue of corporations is exactly the same thing as a tax on the sales those corporations.

    A tax on revenues is a tax on sales… a SALES TAX. There is absolutely no difference. Sales taxes are very, very commonplace. We have one in Barbados called VAT. We just got rid of another one called NSRL.

    It took me several months of arguing with Grenville during the election campaign, but he eventually conceded this very obvious truth… a tax on corporate revenues is just another sales tax.


  35. @ PLT
    a tax on corporate revenues is just another sales tax.
    ++++++++++++++++++++++++++++++++++++++++
    So,…..?
    What is in a name…?
    A rose by any name….

    It remains the simplest, most effective, most equitable, most policeable tax available….
    Why do some OTHER ineffective nonsense just because you give it a label of ‘sales tax’?

    All corporation taxes are effectively “sales taxes”.
    The others just provide more leeway for manipulation to the corporation’s benefit.

  36. peterlawrencethompson Avatar
    peterlawrencethompson

    @Bush Tea September 14, 2018 7:39 AM
    I make the point because Grenville is still trying to sell it as something new, different, and out of the box. But it is same old, same old… some like sirfuzzy are taken in by Grenville’s duplicitous sales pitch.

    A sales tax IS the most effective way for a government to raise public revenue, but it should be one like VAT which taxes only the value added at each stage of the production process. To do otherwise introduces distortions into the economy because the government ends up levying taxes on tax. There should be absolutely no exemptions on VAT for it to be effective. The needs of the poor should be taken care of by giving them money directly through the income tax system.


  37. @ David
    My major problem is that we seem so eager to beat up Stuart, Sinckler, Arthur , Mottley the Public Servants, Trade unionists , Teachers etcbut I am yet to read,see or hear anything national substance from the private sector. They marched up and down the place to change a government,that deserved to go, but after that what ?
    We going to get about 500,000,000. (Half billion) Bds. From the IMF. Am I to believe that real dynamic and innovative investment from our private sector,cannot at least ease the pain , we are going to suffer for what in realmoney terms, is a very paultry amount of money?
    Yet every day,in their own , selfish and greedy interest, they are moving toward specific mergers and acquisitions, to position themselves to exploit any immediate benefits they can derive from our hardship.
    I am going to say again and again, the reason we had to give Sandals those incentives is simply because our private sector, in the tourism industry, had over sixty years to develop a brand such as Sandals and they would not do it.
    However they invested millions in mansions, golf courses and marinas for the rich. They invested in fast food enterprises and made sure that authentic entities such as Baxter’s Road disappear.
    They don’t deserve a cent from the treasury.
    Why don’t they step up and send the seniors to the games in Utah or at least write the Cheque and save the Barbados Defense Force Sports program.
    Certainly that won’t break them. We supposed to be all in this together. Sandals just hired seventy. That puts food, not sound bites, on the table for at least 300 more to eat.

  38. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @ peterlawrencethompson September 14, 2018 7:51 AM

    The war on the words. “revenue ” vs “sales” This is a battle of what we call the taxes. The great semantic war on BU of 2018

    It is a tax. Let me call it a “Revenue Collection Vehicle only Imposed on “Corporations” RCVoIoC.(RCVIC).

    I am not an accountant; what is the fundamental difference between “sales” and “revenue” is one a subset of the other? I await your definition or explanation.

  39. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @PLT.

    Why does or did govt via the customs department impose “import duty” on the value of good imported;
    then added the “import duty” to the “invoice value” of the good so that this higher value can be the basis for the calculation of VAT?

    Where and when was any valued added to the good between movng from the back of the customs warehouse to the front of the customs warehouse?

  40. peterlawrencethompson Avatar
    peterlawrencethompson

    @sirfuzzy September 14, 2018 8:18 AM
    There is no difference between sales and revenue.
    The point about taxing corporate revenue is that corporations do NOT pay it, consumers do… in exactly the same way that they pay any sales tax.

  41. peterlawrencethompson Avatar
    peterlawrencethompson

    @sirfuzzy September 14, 2018 8:27 AM
    “added the “import duty” to the “invoice value” of the good so that this higher value can be the basis for the calculation of VAT”
    ++++++++++++
    Very good point. The import duty is a distortion introduced in an attempt to protect local competitors. VAT should not be applied to import duty, but the revenue department is greedy.

  42. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    (Quote)some like sirfuzzy are taken in by Grenville’s duplicitous sales pitch.(quote)

    Actually i can remember an outspoken member of the CBC on capitol hill advocating for a transaction tax on wall street long before SB was created. His argument was that wall street big banks will always get around paying taxes on profits. The taxcode is to big and all will fight tooth and nail to preserve their niches. The Dem or GOP legislators will eventually buckle under the weight of their monstrous tax code and the amendments. Therefore litle will ever get done in terms of a major rewrite.

    Therefore as Wall Street is highly automated with computer driven transactions and trading etc, it is time you change the revenue collection paradigm. Freeze all changes to the taxcode as it affect wall street.

    Place a very small tax/fee/levy on every transaction(thus transaction fee/tax). As billions of transactions are conducted daily Uncle Sam will collect his money that way. Wall street is great at making and recording transactions, therefore as it will be impossible to not record the transaction thus impossible to hide the fee. I think he was not advocating a value percentage but a fixed amount per transaction. The fee itself is insignificant but since you do billions of transactions a week revenue will be sizeable on an annual basis.

  43. peterlawrencethompson Avatar
    peterlawrencethompson

    @sirfuzzy (i was a sheep some years ago; not a sheep anymore) September 14, 2018 8:56 AM
    Ah now you are beginning to make sense, but a transaction tax is a radically different idea than a tax on corporate revenue.

    The only problem that I foresee with a universal transaction tax is that with contemporary technology and too many lawyers, corporations with shift the legal domicile of every significant transaction to a jurisdiction where it is not taxed. What we will then require is a global taxation system.


  44. “Turkey’s central bank has raised interests rates drastically to 24pc in a shock-and-awe move to stabilise the lira and restore the country’s shattered credibility after months of foot-dragging.

    It comes as a string of economies in Asia, Latin America, Africa, and the Middle East are being forced to tighten monetary policy to defend their currencies and prevent capital flight. “It is going on everywhere. This is all triggered by the US Federal Reserve,” said Lars Christensen from Markets & Money Advisory.”
    https://www.telegraph.co.uk/business/


  45. @ PLT
    The short sighted mistake that Stinkliar made was in thinking that the only purpose of taxes is to raise revenue for government to spend.
    This is such simple minded thinking that it is no wonder we are in deep doo doo ….. and getting deeper.

    An even MORE IMPORTANT role of taxes is to steer society towards some INTENDED objective or collective vision.
    This is something that Tom Adams actually understood… but which has evaded the jokers who followed him…. including Owen.

    It is by tax incentives/penalties that local businesses SHOULD have been encouraged to get into productive enterprises.
    It is by tax incentives (and penalties) that locals SHOULD have been incentivised to be productive and creative…
    Just as tax incentives supported the Credit Union and the Solar hot water businesses, these COULD have been used to drive meritocracy, international competitiveness and national productivity…. while penalising mediocrity.

    Unfortunately, this would have required CREATIVE, innovative leadership at the political and management levels.
    Such is NOT available from the lawyer-type vultures that have dominated our political and business landscape over the past thirty years.

    Tax is a significant management TOOL to shape a society.
    But it takes intelligence to have a sound VISION to be pursued…
    …and to formulate strategies to incentivise brass bowls to toe that agreed line…

    No wonder our donkeys are grass-bound…

  46. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @plt

    (quote)Very good point. The import duty is a distortion introduced in an attempt to protect local competitors. VAT should not be applied to import duty, but the revenue department is greedy. (quote)

    +++++++++++++++
    May i suggest that the greed of the BRA means the enduser/consumer eventually ends up paying the import duty in the price he/she pays for good?

    @bushTea

    Is this BBFIT /CFIT ?


  47. @ PLT at 9 :04 AM

    A very insightful interjection. In a sense a start towards global taxation has been made in the EU. This is the new gospel that the EU is trying to spread to its donor recipient partners. Whether it is beneficial to CARICOM or not this is the era of big government and they need tax revenues to pay the public expenditure bills. They are insisting that all must pay their fair share of taxes.

  48. peterlawrencethompson Avatar
    peterlawrencethompson

    @Bush Tea September 14, 2018 9:10 AM
    You are correct, of course, “that local businesses SHOULD have been encouraged to get into productive enterprises” by our leadership. It is a step to far, in my opinion, to assume that such leadership must come from government exclusively.

    “Tax is a significant management TOOL to shape a society…” that is true, but it is not the only one. Barbados society has failed at many more levels than simply government policy.

The blogmaster invites you to join the discussion.

Trending

Discover more from Barbados Underground

Subscribe now to keep reading and get access to the full archive.

Continue reading