Scare Tactics

From today's Royal Gazette:

Independence campaigner Walton Brown has warned that if the European Union’s proposed constitution is adopted, the EU could gain control over Bermuda’s ability to levy Customs duties on goods from EU member countries...

"In one deft move the precedent has now been set for the EU to assume tremendous control over the overseas territories. It represents a much closer integration with the administering power yet there are no greater political rights accorded."

Nice to see that the anti-independence campaigners aren't the only ones using scare tactics.

Comments

[ace on 25.05.05 at 20:05]

Mr. Brown, and the rest of us on this island, will be in for a rude awakening if we go independent. He thinks the EU is bad. Just wait until the US start to impose their will on us. Oooooo baby. Pass the vaseline.

[adolomite on 25.05.05 at 22:33]

Disclosure. I'm not for or against independence.
Now, please excuse my ignorance but, what is the problem with reducing import tax on goods that move into the island? Is not like these products are competing against the local industry (there is no local industry as far as I can remember).
What would be the problem from relieving consumers with cheaper goods?
I really don't understand, can somebody clarify for me?

[Wali on 26.05.05 at 06:15]

Adolomite - The reason that we have such high import duties comes down to the fact that we do not pay income tax. The government must make revenue to fund all the public services that they (are meant to) provide i.e. servicing of the roads etc.

[Shark on 26.05.05 at 07:23]

I don’t know if you get UK newspapers in Bermuda but I read them everyday.
What was said about the EU constitution is not true. And even if it were if we stay part of the UK it will never reach us. The reason is because the French, one of the founding supporters of it are probably going to say no. And if that happens the constitution is effectively dead and the UK won’t have a referendum on it. And even if it did pass the Uk would not vote yes as the majority of the country opposes it because it means they can no use there unwritten constitution anymore. (Yes the UK has an unwritten constitution meaning that it can be very flexible).
This Brown person probably thinks that the large majority of Bermuda is ignorant of events in Europe so is using them to the advantage of the pro-independence ideas.
Wasnet the BIC created to clear these things up? or clarify them?

[Somers on 26.05.05 at 08:15]

So in the end I bet this really fits right in with their evil scheme. Must remove high import duties, which finally lets them play with income taxes to make up the difference.

[lickinalong on 26.05.05 at 10:28]

The approval of the EU constitution by the French looks doubtful. See the following story in the Times. http://www.timesonline.co.uk/article/0,,13509-1628272,00.html

[adolomite on 26.05.05 at 21:32]

Roads? Services? Right....
C'mon. Who audits this stuff anyway?
Every service still appears to be at least 80% higher that it ought to be, plus the government is the biggest employer (by far) in the island. Do I percieve some perverse incentives to keep import taxes high? Are we talking about taking money from people to give back to them minus a commission?
Just a hunch.

[Guilden M. Gilbert, Jr. on 26.05.05 at 23:04]

Adolomite,

Governments around the world collect taxes to cover the costs of running the country. Most do it by way of income tax, others, like Bermuda, do by way of customs duties (a consumption based tax).

You say the government is the largest employer, where do you think the money to pay the salaries of Civil Servants comes from? Taxation

Bermuda must market itself as an international business centre and a tourist destination. To do this requires payment of fees. Where does the money come from? Taxation.

Need I go on?

If Bermuda does away with customs duties it does away with the government's ability to cover the costs of running the country. How then would you propose covering these costs? If you take away customs duties than the only replacement is income tax.

[Intrigued on 27.05.05 at 10:42]

Guilden:

This country should have done away with the regressive duty based system a long long time ago. Incoe tax is exactly what should be implimented. It would only take a low low rate to pay for the costs of government and if structured as a simple flat tax would not be any more costly to administer than the duty system we pay now.

I for one would be happy to pay a modest tax if it meant the government was properly funded to do some of the social engineering that is clearly necessary in this island.

As I look at it, I can pay a little now or a whole lot more later.

Now if we give government the right to tax income then we need an assurance that they will be fiscally responsible. But I think you will find that when an individual knows exactly how much they are paying each year (as income tax is not a hidden tax like duty) they will become a whole lot more interested in the actions of the government. Something that is clearly needed in this island as so many are completely apathetic toward government these days.

Note that I am only talking about a personal tax and would not add a corporate tax so qas not to impact the offshore business.

[Guilden M. Gilbert, Jr. on 27.05.05 at 12:20]

Intrigued,

I agree with you. I have always been a proponent of income tax for Bermuda. That is the only way to to fairly tax the population.

Regressive taxation is unfair to the lower income earner as he spends a greater percentage of his income in tax than does the higer income earner.

I actually addressed this a few years ago in a letter to the editor and I laid out how I thought it shoudl be implemented.

[adolomite on 27.05.05 at 16:07]

Guilden,
I just wanted to say that government operations appear to be quite pricey for the level of services provided. There doesn't appear to be a lot of accountability, and this might be a consequence of the fact that people really can't see how much tax they are paying thru import tax.

[Bill Cook on 27.05.05 at 16:32]

Guilden,

Re income tax and your advise and advocasy of

it, did you indicate the cost of collecting it?

If so was it based on any form of statistical reality?

I have in mind the gross incompetence of our civil service regarding their numerous shortcomings like being unable to collect millions of bucks in unpaid parking tickets etc.and the license to steal it would seem.

[Rich on 28.05.05 at 18:55]

Actually, Mr. Brown's comments are technically correct. The European Constitution does seek to instutionalise the relationship between the OTs and the EU, and in doing so, to regulate the raising of customs duties.

But Mr. Brown leaves out a very important reason for this position - the purpose of wanting to eliminate customs tariffs is to ensure that trade policy is not used for political purposes and to ensure that Bermuda, et al. does not discriminate between our home state (the UK) and other members of the EU. Mr. Moniz was correct in pointing out that this is the result of such international bodies as the WTO, which is pushing for non-discriminatory tariffs worldwide - an independent Bermuda would still be subject to such pressures.

The Constitution has a few safeguards that are directly relevant to Bermuda. Not only does it allow the island to raise customs if it is for revenue purposes, if the tariff is already non-discriminatory (which it is ... we do not distinguish between the UK and say, Germany or Greece) we can keep our customs policy as it is.

Regarding any possible future encroachment into Bermuda's affairs, proposals made by the European Commission, with consultations from the European Parliament are subject to a unanimity vote in the Council of the EU - here, the UK could veto any such proposal. (Whether or not Bermuda should trust HM Govt to represents its interests on the Council is another story.)

I've also written a letter to the RG about this - sitting here with fingers crossed hoping to see it published!

[Guilden M. Gilbert, Jr. on 30.05.05 at 09:42]

Limey,

How could you possibly compare Walton's comments to comments like:

- The economy will collapse
- The currency will be devalued
- Blacks will riot in the streets
- Expats will be kicked out of the country
- International Business will leave
- etc.

Walton is not trying to scare anybody into a decision on Independence he is simply offering his interpreting of what he has discovered in his research.

[Tiger Bay on 30.05.05 at 09:52]

Walton refers to the following line in the voluminous proposed EU Constitution:

"2. Customs duties on imports into each country or territory from Member States or from the other countries or territories shall be prohibited in accordance with Article III-151(4)."

However, the next line says:

"3. The countries and territories may, however, levy customs duties which meet the needs of their development and industrialisation or produce revenue for their budgets."

Boy, that research took a long time. Two minutes on Google.

[Guilden M. Gilbert, Jr. on 30.05.05 at 10:14]

Tiger,

The point is, Walton is not using and never has used scare tactics to promote his pro-Independence view point.

[sleepy on 30.05.05 at 10:24]

Of course he was.

Why else did he choose the phrase 'integration by stealth' and the term 'Eurofication'.

The first to sound sinister, and the second to appeal to rile up the xenophobes.

[Andrew on 31.05.05 at 13:39]

An excellent letter today, Rich.

http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20050531/OPINION/105310186

[vladimir on 01.06.05 at 15:29]

Independence -- that is a fine idea -- take away the legal protections afforded investors and property owners by the UK connection and watch the investment dollars dry up -- this Government loves to go to the Caribbean and be feted as visiting royalty -- what they oughta do is travel without diplomatic passports and see how average folks are treated -- a how of thing they aspire to -- they want Bermuda to be another Grenada or St. Vincent -- Hash On Boys