Getting our middle down economy back
From "Suggestions to stimulate economic recovery for Bermudians once Shelter in Place ends"
Go to the project
I do not envy his position of the Finance Minister.
The plan announced to help Small/Med Business back up missed the mark
- Government gave BED more cash to loan (add to debt). Why is BED increasing their interest on loans at this time? even if less than the banks it's still more than it used to be.. why not even offer interest free loans on the first half or all of the amount borrowed under X?
- Suspend (not defer) private pension payments for 6 months, this would cost Government nothing
- Payroll tax deductions or eliminated (for 6-8 months) for jobs kept after allowed to reopen.
- Government concessions on cleaning, sterilization and disinfectant items when business reopen.
5. Government to pay employee portion of HIP for all staff a company laid off but keeps insured..
How would they pay for these..
While not a popular option for a labor government. Cuts to the civil service or place all those not working on the same $500 a week benefit until say 75-80% of business are allowed to open.
Look at a tax on company profits over 15% (pick a number) of gross earning. So if 1 million comes in and a profit is seen of $150,000 they pay nothing but if they earn $200,000 a tax on the extra $50,000
Millions in lost Government earning is in the area of business not reporting or under reporting of staff earning affecting the payroll tax they do pay. I would suggest a unified payroll system that the government builds and all self employed up to big companies have to enter their pay numbers and generate their payroll. This would ensure correct tax calculations and give the Government instant access to the data. Signing up for this service would be mandatory and cross referenced with BEDC, TCD taxi/company car and trucks, register for LLC, Bank Merchant accounts and imports for businesses.
