Vexed Bermoothes

The Government is trying to position its blockbuster budget as being an economic stimulus.

Except no-one can pin down exactly what part of the economy it’s stimulating except public sector flab and waste.

Maybe we should call it the PLP’s “economic spenduluous”.

The news has been rife with new layoffs this week … primarily affecting Bermudians and mainly in sectors where staffing reductions were previously unheard of.

I am pointing my finger.  You see, the sudden jump in payroll and foreign exchange tax has screwed up a lot of business plans.  A lot of companies that were looking at how to survive through the downturn now find that, due to the tax increases, their costs and losses have grown even more.  And so they have to close shop.  A loss to our community, a devastation to the employees, and a significant tax loss to Government.

And it’s not just the local sector … amongst the international companies, there is an acceleration in the movement of positions (new and existing) to other locations.

Ooops.  Bitten on the arse again by the law of intended consequences.  The “stimulus” budget is in fact a “hindrance” that is forcing companies and families to make hard decisions … while Government steadfastly refuses to do so itself.  There’s a big problem there:  it’s not sustainable.

Government must reduce its budget.  It’s so simple that only a politician could miss it.