From the earliest collaborations, from hunting to farming, trading, to production of goods, societies have established shared values and expectations in communities and ultimately, nations. Many believe cooperation toward shared goals, from managing resources for survival, to covenants of modern democracies, such as enshrining freedom of speech, privacy, religion, and property rights, is central to modern civilization.
Evolving Expectations and Nations
Jean-Jacques Rousseau was a French philosopher often credited with influencing the US founding fathers. Just 12 years before the US declared independence from Britain, Rousseau published Du Contrat social (The Social Contract), where he described “a genuine social contract, one in which people would receive in exchange for their independence a better kind of freedom, namely true political, or republican, liberty” based on “collectively held will that aims at the common good or the common interest.” Further, with laws determined by this “general will” – he saw the state as a “moral” entity that existed to ensure the “liberty and equality of its citizens…” but he asserted that “…when any government usurps the power of the people, the social contract is broken” – thus freeing citizens to challenge the status quo.1 The 13 British colonies did just that.
A contemporary political philosopher was recently cited, observing that, “A social contract is the set of rights and mutual responsibilities that we have among ourselves as citizens in a constitutional democracy. A social contract is both what’s asked of us…and all that is made possible for us by virtue of our participation…”2
Breaking the Anguilla Social Contract: Election Interference
With Paris in flames and the Middle East, lost embers from the Arab Spring, many have marveled at the quiet despair in Anguilla after replacing the last government with one immediately breaking its promise not to impose GST. In fact, when the British allegedly forced that newly elected government to betray the electorate on the most consequential promise that won their seats in 2020, they effectively nullified nearly 30 thousand votes cast for district and at-large representatives. How? Slowly.
Months of Covid vigilance and closed borders isolated the public from one another in fear of an outbreak between the June 29, 2020, election and the budget speech on December 18, 2020. It confirmed the betrayal with the commitment to “implementation of full Goods and Services Tax (GST) from 01 January 2022 at a rate that is not yet determined but which is required to yield 8 per cent of Gross Domestic Product (GDP).”3
The government usurped the power of the people, and the Anguilla social contract was broken.
The $22 Million Ransom: A Search for Alternatives and Months of Anxiety
Weeks passed until the sham public consultations. They wasted time and risked public health, amid the pandemic. And, beyond public appeals for options at every event, petitions not to read the bill were ignored, and the first reading forced it into motion.
The consultants said $22 Million MORE was all that was “needed” – with our borders closed!4 So many existing taxes that could be raised also raised false hopes. All the way to the House of Assembly Select Committee, citizens urged every possible alternative to the culturally intrusive loss of civil rights, countless threatening penalties, and infinite uncertainties in that authoritarian law.
Undemocratic Votes: The Year after Betrayal
On July 29, 2021, despite a quorum, they passed GST with Attorney General and Deputy Governor votes overriding two duly elected Ministers. Another petition ignited immediately, imploring the Governor to honour a review period. She ignored them again, signing within 24 hours of the appalling vote in the House, kicking aside shards of the social contract.
Forced Enforcement: $60 Million More Taken in 6 Months!
They waited. They knew the tax burden and global inflation were pushing people into multiple jobs and food insecurity. At the harshest possible moment for people to walk from their jobs to walk with signs on the road, they did so on enforcement day. By that date of July 1, 2022, they had already taken more than $22 Million “more” from existing taxes. In fact, they took over $60 Million “more” than the expected $11 Million (half a year at $22M).5 Whereupon opening the borders and resuming commerce, the People paid more than twice what was asked of them in the final months before GST.
On the Way to $130 Million “Over”: Buying Votes from the People’s Purse!
After exceeding the incremental goal in 2022 by tens of millions, the 8 June 2023 Executive Council Minutes revealed, “…there is an over [taxation] of EC$64 million [by May]” which they announced would provide “support” for the cost of living – compounded by GST – with duty and fees exemptions of ~EC$138 thousand per month through year-end.6 Wow! From that $64 million increase in their cost of living, they are giving the People “exemptions” of 1.3% of their own money! Amazing!!!
Ignoring GST as the issue, there was yet another way to “protect consumers” (from abuse of the public purse): to remove Excise tax on gasoline – while retaining duties and fees! However, it had never been charged. In turn, this vote-buying volley would reduce revenue ~EC$2.12 million, or “give back” 2-3% of a shocking tax excess on track to exceed $130 Million this year!6
And… Millions More for Raises, with a Backstory on Backpay
The same Exco minutes detailed government workers’ pay cuts in 2009 and 2010 “in response to a fiscal crisis” and implied the matter remained outstanding to this day. However, EC$3.97 million was already in the budget for Increments and Progressions. A total of EC$14.91 million for raises in 2023 and 2024 were then approved in the meeting.6 That is, they approved nearly $15 million of “pay cuts” for the People – to pay for their raises!
Yet. Not a word of 28 departments paying over $3 Million in “Civil Servant Backpay” in 2016.7 Begrudging anyone of wages enduring GST oppression is not the point, but seeking civil servant backing might be.
So. With a shattered social contract, the People now marvel at how the British continue the guise of “good governance”: after years of assenting to unsustainable budgets that doubled, doubled again, and look to do so yet again. They are turning their backs while impoverishing overtaxed people, insulting them with miserly manipulations while just trying to eat and get back to work the next day.
Please. Director Candler, please help the Foreign Office find their way back to the right side of history by helping restructure a sustainable government, without GST – and put Anguilla back on the road to prosperity.
Withdraw GST assent – 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://www.britannica.com/topic/social-contract/The-social-contract-in-Rousseau; 2https://www.harvardmagazine.com/print/79409?page=all; 3GOA 2021 Budget, p. 28; 4Slide 4, Retail and Wholesale GST Consultant’s Presentation (2021); 5GOA 2023 Budget; 6Minutes of 139th Meeting of the Twelfth Executive Council (8 June 2023); 7GOA 2018 Budget (28 departments).
