Hmm. Was it sick? Savage? Or stupid? Perhaps erasing our last election and elected Ministers’ votes, budgetary bungling, and cultural contempt to force GST into force reflected a level of stupidity ? best described by the Tom Cruise character, Lieutenant Daniel Kaffee, in “A Few Good Men”: After his colleague innocently suggested a stunningly dangerous tack in the courtroom that would risk severe repercussions, he retorted, “…Should we or should we not follow the advice of the galactically stupid?”1 Apparently, none of our leaders paused to ask that question.
Sadly, the skills in that screenplay to elude a dire fate are simply foreign to the Foreign Office. That’s how this Galactically Stupid Tax was undemocratically, unjustly and, well, stupidly, inflicted on Anguilla.
“3 R’s” of Our Economy: Rentals, Restaurants and Retail
Three glaring examples of GST stupidity include: replacement of Accommodation Tax; restaurant devastation; and “retail” GST, generally gutting grocery stores where empty carts are disappearing from empty aisles with empty shelves, as shoppers flee on ferries. Perhaps a few good men (and women) would forgive the innocence of some, if not the arrogance of others, at the outset. However, persistent proponents dismissing its risks may be among the hapless that Lieutenant Kaffee was describing.
Lesson One: 100% of Restaurants at Risk ? for 2% of the Budget!
Before GST, restaurant dining was second only to our beaches in tempting tourists to our shores. Members of nearly every household also enjoyed them in an egalitarian society that has cherished and sponsored its elite chefs, from food stands to global standing in competition ? while savouring some of the best cuisine in the world. Restaurateurs have made colossal contributions to the community for decades, contrary to galactically stupid assertions that, as services, “they weren’t taxed” at all!
They paid ? and thus, their patrons paid ? countless Customs duties and fees on food, supplies, shipping and brokerage and excise tax plus duties and fees on beverages, plus business, liquor, food handling licenses, work permits, property tax, commercial and private vehicle registrations, surcharges and taxes on tankers of propane, as well as premises and home electricity, phone and internet taxes, to name a few. Most importantly, they have employed others to do the same – and attracted visitors eager to patronise them three times a day, plus beverages on the beach throughout their stay.
Guests now wander grocery stores, resorting to “eat in” at resorts, or seeking rooms with kitchens, so they can cook and clean dishes on vacation! Just to afford Anguilla, by limiting restaurant meals. Wow. In fact, dining prices have soared since fondly remembered menus and dishes on their last trip. How? 9% global inflation, 15% service charge and 13% from Galactically Stupid Tax. Will they go elsewhere next year? Fewer patrons ordering fewer courses – or sharing – mean fewer hours, meager “extra” tips, if any, and thus, fewer denizens with disposable income. Hey, you back there wearing dunce caps – did you know inflicting GST on restaurants also means workers working fewer hours – which means, fewer having means to feed that fat budget?
So how is GST a Galactically Stupid Tax? Restaurant and dining tourism are at risk ? for 2% of the GOA budget! That is, they have ravaged restaurants to take $4.8 Million from their tables while spending $246 Million!2,3 Just think: They could save dining tourism by saving just 2 cents of every dollar they are taxing and taking! Really.
Back to Class: Rentals, Residents – and Revenues Removed from Renting!
Want to go to the front of the class? Listen up: GST has compelled numerous owners to withdraw their villas (and other businesses) from the economy, rather than submit to its intrusions.
For those whose advice Lieutenant Kaffee cited, that means fewer people participating in commerce and generating – you guessed it, tax revenues! You know, taxes the auditors are chasing so hard they make investors regret investing in Anguilla? And, it means housekeepers, gardeners, chefs, car and villa rental agents, maintenance contractors and taxi drivers employed for those rentals – are likewise no longer generating taxes from those villas. Now, they are vacant, for sale, or enjoyed only by owners now and then.
Here’s extra credit: Investors lucky enough to sell their villas and leave have removed themselves not only from renting, but the economy! You know, from paying 30-40% Customs duties and fees on furnishings, upgrades, and supplies – plus GST? Business licenses, taxes on utilities and fuel? Costly bookkeepers and property managers, risks of penalties, constant threats of brutal audits, recordkeeping, duplicate invoice creation, endless uncertainties, and having to prove the source of every cent in one’s business. It’s just not worth it for anyone accustomed to paying Accommodation Tax whenever they rented before GST.
And, GST has inspired visitors to remove themselves from Anguilla after being gouged 22% more for everything on the island. Quick Quiz: Why 22%? Remember they forced 13% GST on top of 9% global inflation!
Worse – and truly stupid, GST reduced tax revenues! Forcing GST to replace Accommodation tax has cut tax collection with endless GST deductions, audits, documentation, wasted time, and months to await or challenge credits in the most productive sector of the economy. That is galactically stupid.
Retail? People Could Be Saved if GOA Would Save 2 Cents per Dollar!
That global inflation and GST cut everyone’s income, taking bread from every table. Boasting they raked in Retail GST of $3.99 Million2 – they have forced people to forgo over 20% of all we had, rather than GOA saving just ~2% of its bloated budget!3 Not to mention other sectors, lost wages, lost tips, lost ferry shoppers, and lost workers who have simply left to escape that Galactically Stupid Tax ? and leaders of equal measure. Tragically for its proponents, GST is making them look galactically stupid – and savage.
They are better than this. The Foreign Office and our leaders are smarter than this. All we needed was to reopen our borders and for the British to respect our culture, including our election and elected Ministers’ votes. The verdict is clear: We need a few good men (and women) to do the right thing and win the case to repeal GST!
Repeal GST – and pass a balanced budget bill. Now!
This article reflects cultural and economic issues raised on July 5, 2021, at the House Select Committee on GST Public Hearing. 1https://methodshop.com/a-few-good-men-quotes/; 2https://www.facebook.com/anguillagovernment/posts/pfbid02USVKFJww93zSoErbyn7 2xySaoRqUVHPuJESiWRRx8FvQ2kC TjUHw1PeRTNyZUEaQl /; 3 2023 GOA Budget.
