The Tribune

By RICK LOWE

Nassau Institute

Franklyn Wilson and others confirm the danger of the private sector “negotiating” and “collaborating” with the Government when he attempts to turn the sow’s ear of Value-Added Tax (VAT) into a “silk purse”.

He told Tribune Business: “The good news here is that no one is out there championing the cause, saying this is hell and damnation. This is the best chance for the country.”

Then, to top it off, he agrees there will be an increased burden on the middle and lower classes as a result of VAT, but suggests the problem points to ‘price gouging’ by the business sector as they “seek to improve their margins”.

Here is a gentleman who, for all intents and purposes, a multi-millionaire off of business ventures, suggests that business pricing policy is the problem, not the higher taxation.

Is there any wonder the general public thinks government is the solution and not the problem?

Don’t Mr Wilson, and other people saying these things, understand that higher prices, whether through taxation or ‘gouging’, as he puts it, reduce sales and impact a business’s viability? Surely he must?

Don’t Mr Wilson and other people saying these things realise that access to the Florida market and online purchasing is a reality for many, many Bahamians today, causing business people to watch their margins and prices to remain as competitive as possible given our high taxes?

Both the ever-increasing taxation and people telling their children not to come home is quite scary, and the topic of most conversations these days. And that is across the political spectrum.

It is disappointing that people like Mr Wilson, the Chamber of Commerce, the accountants, et al appear to have closed ranks on what, in effect, is government negligence with our tax dollars in their attempts to justify VAT now.

Will the present generation of business people readily “adapt” or “accept” the increased tax burden as retirement prospects are impacted? Will the younger generation growing up in this era know the freedom from an overbearing government that many have enjoyed for a few decades now? Only time will tell if government’s hand will be forced to moderate its presence stance.

Consistent bad public policy - making people believe there is something for nothing - will now haunt future generations.

Will future generations adjust, or will they stand up to the long arm of government tax coercion?

As for going along to get along, with bad public policies like VAT and others over the last 30 or 40 years leading up to this mess, there is a clear record for our historians and economists to review. Will they tell the story like it is, or use rose-coloured glasses like Mr Wilson and others?

Time will tell.

Closing ranks on public policy that hurts everyone, albeit, some worse than others, is a pipe dream and the appeasers - granting concessions at the expense of principle - know that, but maybe they would rather lose their wealth and continue to make it worse for all Bahamians “by 1,000 cuts”?

History is replete with broken dreams as a result of negligent public policy around the region and the world. To appease these policies is detrimental to future generations.