Chamber requests no tax increase at budget hearing
The Belize Chamber of Commerce & Industry says that it welcomes the Government’s assurance that there will not be any tax increases in the presentation of the upcoming budge, notwithstanding, pressures from the International Monetary Fund on the need to service the country’s debt obligation. The Chamber says that it is welcomed despite the nation’s current economic environment; one which they say is representative of the private sector being at crossroads of development due to the general inactivity caused by a number of factors, including the slow sales and high cost of doing business. That will be further impacted by the proposed minimum wage hike which will see businesses incurring an estimated thirty million dollars per year. The release states, “In this context, we look forward to your presentation of the National Budget for 2012/2013 outlining your plans for economic development as the economy thirsts for growth and expansion.” The Chamber also stated its commitment to continue dialogue and cooperation to lower the cost of doing business and increasing efficiencies for development throughout the country. The budget will be read on Friday, June twenty ninth.
The private sector of the Belize economy must not, if it understands private investing, kow-tow to Barrow’s austerity measures. Barrow and his advisers know zilch about what makes an economy dynamic. They only know how to tax and spend. As a matter of fact, the entire Belize is one of taxes and taxing. No one in government understands that productivity is what counts in an economy. From the founding of the country, Belizeans lived under strict austerity measures. As such, they are inured to these austerity measures and mouth such platitudes as ” things haad out ya” . Wake up Belizeans. You need new and better parameters to improve and grow your economy and not ” Horizon 2030″ rubbish forwarded by Barrow.
I concur. Taxes destroy business, and that’s the last thing to do in a weak economy.
If anything, GOB should find a way to REDUCE discretionary spending, and REDUCE taxes. Those moves will keep money in the private sector, and maybe, just maybe encourage some investment that will create jobs.
Historically, wherever you look in the world, and in what ever era, LOWERING TAXES encourages growth, RAISING TAXES destroys jobs. It’s the irresistible law of economics.
And, curiously to some, lowering business taxes has the effect of increasing the tax revenues the government collects as the economy grows. It only takes 16-24 months for that effect to kick in. When Ronald Reagan was president of the States, he slashed the income tax rate about in half [from more than 70%! Can you imagine that?], and within 2 years government tax revenues doubled.
Our leaders need to get knowledge and learn from it.