by Craig Butler
The government has refused to extend the tax exemption for first time home buyers in the Bahamas. Prime Minister Hubert Ingraham released the number of housing starts for previous years to show that since the exemption went into effect in 2003 there been no appreciable impact.
With all due respect to the prime minister, he and his government have entirely missed the boat here. Granted there wasn’t the dramatic jump in housing starts that he was suggesting should have occurred to declare the programme a success, but there was a leveling of the numbers - meaning that the variances that can be noted from the figures quoted over the other years had basically evaporated. This could have meant that the impact was just about to take effect.
When coupled with the removal of the exemption given to taxi and bus operators that allowed them to acquire new cars duty free, it must be said these policy reversals are mistakes that should immediately be overturned.
It matters little that housing starts didn’t rise dramatically. The exemption not only provided an incentive to purchase, it also in many cases made it possible for people to purchase a home.
As an attorney I see many young couples wishing to own their own home and get away from the doldrums of paying rent. It never ceases to amaze me how few of these people have accounted for closing costs associated with such an acquisition. Therefore, the removal of the stamp tax was a blessing, and the reason they may have decided to buy when they did.
In fact the PLP had decided to increase the exemption limit to $400,000 had they been returned as the government. Alas, that will never happen now as it has been removed completely.
In nation building we must encourage our people to strive, to dream and to achieve. This policy reversal removes that impetus and for the life of me I can’t imagine what possible justification the government could have for doing so.
It would appear as though the tax department was still collecting sufficient revenues to allow the government to meet their commitments, so that excuse seems to have gone out of the door. And if that is the case then please, prime minister, provide your reasoning.
In the case of the exigencies we can understand that they should have a limited lifetime - after all, they are only put in place due to urgent need. But the stamp tax exemption does not fall into this category. And if it was supposed to be an economic stimulus, then the five-year period should have at least been extended for another five.
The prime minister should rethink his position. I note that he took a long time to review the Bah Mar deal, but did in fact finalize it. We have a burgeoning crime problem today that desperately needs your attention. Anything that can make this situation worse needs to be avoided at all costs, and this decision has the potential to do that.
Clinton & the Race Card
It is commonly said that Bill Clinton was the first black president of the United States. From his saxophone playing, to his weed smoking without inhaling and known philandering - the black community hailed him as some sort of champion of their rights. By all appearances he seems to have reveled in it.
Now all of this seems to have been for naught, and black people can be heard muttering “Say it ain’t so, Bill, say it ain’t so”. To me, Clinton has shown that he is just another white man using black people and their causes when it suits him.
I’m speaking about the comments he made to diminish the recent victory in the South Carolina primary by Senator Barak Obama. Clinton pointed out that Jesse Jackson won the state twice in previous primaries. I honestly believe that the Clinton camp sent the former president out to play the race card and scare white Americans who are over 45 and who can’t imagine anyone other than a white male in the White House. In doing so he sent an unspoken signal that white people need to come out and vote to avoid a black man achieving the reigns of power.
This is a ploy that can only work a few more times as the younger voters in the US have shown that they have embraced change. The world is watching in astonishment as this supposed bastion of democracy, a country that has loves to adopt an interventionist policy when it comes to everyone else’s affairs, is having a real problem with this run by such an inspiring man as Barak Obama.
I have to say that my personal politics fall closer along the conservative lines, but if I could I would certainly forgo all of that and vote for Obama. He is not only good for America but for the world. America will then be able to hold its head high and use itself as an example of a country that is truly free.
"The prime minister should rethink his position."
I think I have to agree here. At the very least we should be given a clear break down of why it cannot be extended.
Some things to think about...
We should also look for a way to give an exemption, at least to Bahamians, on stamp tax and other government charges to houses / properties being sold for a good period of time (on the order of seven to twenty years) after the payment of such on a sale.
This would allow young, handy Bahamians to purchase fixer-uppers and put in sweat equity and re-sell and build some wealth at an early age. With the way we do things, that is almost impossible if you want to be squeaky clean on the legal front.
Notice how governments can build in cost of living adjustments when it is in their own interests but seem to lack the same insight when it comes to the well being of their citizens?
The US with their income tax exemption comes to mind.
Us with our car duty strata. Hello, a $20,000 car is no longer a luxury car by any stretch of the imagination in case anyone is not paying attention.
all the best,
drew
Posted by: drew Roberts | February 04, 2008 at 11:07 PM