Bmda: Robbing the taxpayer again

Finance Minister Paula Cox presented her first Budget Statement today with a number of tax increases and a big increase in capital spending.

A stronger than expected economy in 2003 enabled Ms Cox, who succeeded her late father as Finance Minister in January, to hold down down tax increases.

But most employers will pay an extra 0.75 percent in payroll tax, smokers will spend an additional 50 cents for a packet of cigarettes and car owners and public transport users will also see costs go up.

In addition, a raft of Government fees will increase foir the first time in two years.

In her first budget, Bermuda's Finance Minister takes active steps to kill a strong economy. Somebody ought to give the woman a course in economics. Less money in taxpayers pockets mean that less money will be spent on consumer goods and services, means less money in tax revenues.

What makes the finance minister think that businesses won't pass on that 0.75% increase in payroll tax to the consumer? That's how business goes. What's going to get socked? The economy that used to be strong.

Read here to see the licks the average taxpayer will receive under this new budget, which adds a $60 per annum license fee to use a cell phone. Through this punitive budget, Finance Minister Cox hopes to achieve social cohesion; she surely will because Bermudans will be united in misery. Go here for the actual budget itself which indicates that 2.0% to 2.5% economic increase is a "better than anticipated economic expansion." She does a brief assessment of the US and UK economies to see how Bermuda's tourist industry will be impacted, and forecasts GDP growth from 2.0% to 2.5% for the country.

One thing, for sure, politicians all over the world are damn lazy.