EDITOR, The Tribune.
Nature’s free gifts of beaches, harbours, all sea and land resources get value because people, both local and foreign want these unique gifts for personal and commercial use.
So no matter who “owns” nature there is a location value called economic rent which is exclusive of any production on or from that location.
It baffles the mind that the decision makers of The Bahamas or any nation cannot see the justice and equity of capturing this socially created economic rent for government. Sin taxes on cigarettes and alcohol are meant to reduce consumption. Cannot these decision makers see how taxes like the VAT will also discourage production, trade and jobs?
The late Lynden Pindling said, “When we had put in the improvements in all these islands, then some fellow who bought a lot for $3,000 comes back, sells it for $10,000 (Miami Herald, April 15, 1977). Just think of the 2014 economic rent “in all these islands” if the current government followed Pindling’s advice and just extended the property tax and captured all economic rent everywhere.
Why is this tax shift from production to economic rent so difficult to understand? Why is there so much ignorance and opposition to encourage progress and lessen poverty?
JOHN FISHER
Fresh Creek,
Andros Island,
January 28, 2014.
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