The leader of one of Barbados’ three new political parties is suggesting that reducing the tax burden on citizens is one way to get the country out of its economic woes.
Grenville Phillips II of Solutions Barbados made the call for an immediate decrease in the level of taxation, contending that it would not only give taxpayers an ease but lead to an increase in Government’s revenue.
“That has been proven in Barbados. There was even a study published just before the Democratic Labour Party (DLP) was returned to office which looked at Barbados’ history of lowering and raising taxes and they found that when the Government lowered taxes, it took in more revenue,” said Phillips, whose political party is comprised strictly of business people.
“If you want more revenue to come in, lower taxes. If the Government does not understand that, come and ask me to explain it or go and get some other advice. Do not listen to people who are leading the country to ruin.”
Phillips lamented that high taxation continues to be a feature of the Freundel Stuart administration, even though it has proven not to provide the projected revenue.
And he questioned why the government persisted in doing the same thing repeatedly when the results were no different.
“The Government has raised taxes and taken in less taxes, so we know that that does not work. They tried it for the past seven years and it has not worked,” Phillips said, adding that while there was a “little bump” in revenue at one point, it could not be sustained.
He was adamant that lower taxes would translate into increased revenue.
Phillips, who is an engineer by profession, therefore encouraged Government to try his approach, although he acknowledged that given the current financial position, this might not be the ideal time to do so.
“The best time to have done it was when the country had some reserves, so at least they would have a buffer in case they were afraid. But to wait until the country is basically drained and try it at this time, I can understand why there will be great trepidation,” he said.
The political hopeful, who will be throwing his hat into the ring when elections constitutionally due next year are called, extended an offer of assistance to the DLP Government, saying he was available for discussion on the issues.
Phillips’ Solutions Barbados, along with the recently launched United Progressive Party (UPP) and the Barbados Integrity Movement (BIM), are presenting themselves to citizens as alternatives to the DLP and the Barbados Labour Party (BLP) to form the next Government.