Vexed Bermoothes

Politics.bm’s ears started quivering over Government’s trial balloon for a “total income tax” to fund it’s FutureCare.

What exactly is Total Income? It is not just an expansion of payroll tax.

By usual definition, Total Income includes a broad range of receipts: wages, tips, interest, dividends, business income, rental income, amounts you receive from pension plans, alimony and child support, gifts, the value of lottery winnings, and employment subsidies such as housing or travel allowances.

Of special interest: Total Income includes capital gain, or the profit from sales of assets such as stock or real property. It also is typically international in scope.

That is, as they say, the camel’s nose under the edge of the tent.

You see, Bermuda’s light tax structure – the basis for much of our international business – is dependent on having a light and cost-effective government. If you allow government to metastasize, someone’s got to pay. And here’s the double irony: bigger tax systems require bigger governments to administrate, to negotiate treaties, etc.