Premier Burt & OBA Leader Smith On Taxes
OBA Leader Ben Smith and Premier David Burt have both commented corporate income tax and payroll tax changes.
OBA Leader Ben Smith statement:
Mr. Smith said, “On Friday in Parliament, Premier David Burt boasted about receiving over $1 billion in corporate income tax.
“He then decided to increase payroll tax on entrepreneurs and small businesses earning less than $200,000 annually.”
“The One Bermuda Alliance [OBA] believes Bermudians already pay enough tax under the PLP. We voted against Premier Burt’s bill, which will only bust Bermudian businesses. Yet the PLP backbench voted for their Party instead of the Bermudian people.
“David Burt is stepping down as Premier in seven weeks. And the PLP’s parting gift to Bermudians under Burt’s leadership: yet another tax increase on those who can afford it least.”
Premier David Burt statement:
Premier Burt said, “The OBA can grandstand if they wishes, but the distortion of facts are unacceptable and the OBA record is clear.
“On Friday, I answered a question in Parliament about corporate income tax receipts. The OBA characterizing an answer to a parliamentary question as “boasting” is a deliberate and malicious misrepresentation.
“Under the OBA, businesses with an annual payroll below $200,000 paid an employer payroll tax rate of 1.75%. This PLP Government reduced that rate to 1%, a reduction of nearly 43%. The Budget presented in February clearly stated that the rate would remain at 1%.
“An error in the legislation reduced it to 0.5%, contrary to the Budget and the final drafting instructions. That error was creating wider complications, including proposals to extend the unintended reduction to other categories of taxpayers. Friday’s bill corrects the error and restores the rate announced in the Budget.
“I took full responsibility in Parliament. The error happened under my leadership, and it was on me to put it right. I was not going to leave my successor to fix a mistake that occurred on my watch.
“We will ensure that corporate income tax revenues are used responsibly, following the priorities outlined by the bipartisan Tax Reform Commission and reflected in our Budget. That means delivering tax relief, investing in public services and reducing Bermuda’s debt.
“The OBA should come clean and explain to Bermudians that the rate being restored is the rate published in the Budget, and remains nearly 43% lower than the rate paid under the OBA.”
What happened to this alleged $1+ BILLION in corporate taxes? How much of that is from the global tax vs. regular corporate taxes?
“We will ensure that corporate income tax revenues are used responsibly, … reducing Bermuda’s debt.”
That will be a pleasant surprise. Bermuda’s nearly $4 Billion debt has only increased over the past 20 odd years.
If the PLP Government did not pay so much in interest on our debt, it would have more available money for the social programmes it wants to deliver.
Beat that drum much harder. Most don’t know that $500,000 leaves the island everyday to pay finance charges on the PLP created debt.
$3.5M a week available if the PLP had not run up such a debt.