Premier Cox’s “save the retailers” announcement seems to have backfired.
The payroll tax holiday is a job preserving move.
But the 40% hike in airport duty (combined with a steep reduction in allowances) has people freaked. Is Government that broke? What new taxes will come next?
In 2010 Q4 local travellers reported $21 million in overseas purchases. Ignoring the impact of allowances, that would have yielded $5.25 million in duty … or $7.35 million at the new punitive rate.
It’s clear that the tax hike on individuals is paying for the tax holiday for retailers.
Will the tax hike encourage locals to “buy Bermuda” instead of shopping during their holidays … or will it just raise the cost of living here and annoy the voters?
Is the Government so broke that it needs to restrict Bermudians’ freedom for a mere $4.2 million in additional tax revenue?
If the PLP had not squandered so outrageously over the past decade we might have a surplus to cushion our situation … or be able to borrow. But in the Post-Platinum Era, our credit is maxed out and Government has little room to manoeuvre.
It’s not the global economy, stupid. It’s ours and you tanked it.