ELECTIONS HAVE CONSEQUENCES PT 3

Author’s note: Elections Have Consequences is a four-part article series. This article is Part 3.

Fellow Bermudians,

Now, why is a conservative corporate income tax revenue estimate important?

It is important because if that number is even remotely, correct. It provides an alternative source of revenue for the government. The government said that subject to the receipt of these funds, they are going to substantially change Bermuda's economics and have a positive impact on every Bermuda resident.

How? Primarily through the reduction or elimination of Payroll Tax and Customs Duty.

There will also be consideration of changing other government revenues.

Payroll tax is an obvious target for reduction or elimination. It is one of the largest

taxes that is paid by a company. The payroll tax has to be changed with the

introduction of Corporate Income Tax because if you run a company and you introduce

the new Corporate Income Tax 15%, I will expect a reduction of my existing taxes.

I will not accept paying the new tax and continuing with my current level of taxes.

Bermuda will then have a spin-off effect. To the extent that there are reductions to

payroll tax, there will be more money for employees. We will then have a cyclical

scenario. More money to spend by some. More money to receive by others and the

circle continues – the multiplier effect.

ANTHONY RICHARDSON, JP, MP

MP, CONSTITUENCY C7, HAMILTON SOUTH