This is what happens without a Balanced Budget Law that requires referenda to control spending: The People get exploited. Our only “growth” sector is government. So, to help them celebrate our exploitation, let’s have a look.
Feeling Over-taxed? A $42m Surplus and 42 Departments!
“A Citizens Guide” to the budget says forty-two (42) departments have been “funded” by $267.36m taken from our economy – on top of amassing a $42m surplus! [1, p.6] Wow. And they expect to collect even more.
That’s right. While boasting of “digitising” services,[2] we get to pay for 42 departments – and their raises! In fact, they plan ~30% more for “Compensation of employees”: from $89m last year to $117m by 2025.[3, p.56] What? No one else expects to earn that much? Well, how else can they celebrate surpluses – unless we have deficits?
GST: The Tip of the “Broad Based Taxes” Iceberg!
If you like GST, you win! This year, they’ll take ~$219m of GST, excise, duty and fees ($152m, $10m, and $57m) for whatever they want – and pretend to give back a few cents as welfare presents. And, yes, as winners of the Titanic lottery, our reward is: Paying ~$279m or yet another $60m added to all we do, buy and eat by 2025! ($189m, $17m, and $73m)[3, p.56]
Hmm… Does $60m more sound familiar? That was also the extra they took in 2022 over 2021 in “broad based taxes”: the ones that cause poverty, chronic illness, more crime, and fewer folks staying in school. [4] But wait: there’s a helpful “policy priority”! For our most vulnerable people who need food security, instead of repealing GST, they’ll be “increasing agricultural and fishing production.”[1, p.4] Well, all right then.
Have a job? They Plan 25% More from You!
In the workforce? Get ready: They expect 25% more Levy, from $19.3m this year, to $24.2m in 2025 (that is, the “Universal Social Levy” – that was supposed to “sunset”).[3] Think of it as working for them an extra 10 minutes, every day. That is, assuming you haven’t already left for better places to work. You’ll have to stay late, just to keep up!
Doubling Down: “Improving” Domain Management – AND “Full Implementation” of GST!
Just as domain registration fees are throwing us a lifeline, drowning in tax bills, they are spending it faster than it can roll in.
They have included, “an increase of $50.56m when compared to the 2022 estimate … due mainly to the aim of improving the management of the Domain Name Registry along with the full implementation of the Goods and Services Tax.”[1, p.5] But where are the other $40-50m the registrations will likely deliver this year – after being well “managed” already?
“Enhanced Transparency” and “Net Acquisition of Nonfinancial Assets”
Hmm…Like slick brochures, the Guide and Plan gloss over previous details. After pooling, expense categories look more like sargassum blooms. For example, Youth Development is a “policy priority,” but such expenditures are not detailed. Nor Sports Development, apart from $856,500 for a Blowing Point Basketball Court.[1] Whereas, other projects are detailed, but not all – like airport spending, the whale they plan for their “policy priority” to “increase access.”
“Net acquisition of nonfinancial assets” was $7.1m in 2022, $41.6m this year, $100.7m in 2024 – and swells to $164.3m in 2025. In another scenario, they top out at $184.3m.[3] Wow.
Turns out, they expect us to pay $342m for capital. First, $267m for the airport – tapping “reserves” they took from our tables![2] That is, while they take tens of millions in raises and persecute us with fines when we can’t keep up. They also promise doing business will be “seamless and swift”[2] – you know? So they can get GST from every dollar – faster?
All this, so they can “increase access” and have their bank auction off our houses to foreigners? And given 6 years for their last project, plus overruns… How soon before they cry, “We poor!”? Even the shiny “Guide” admits, “…the GoA remains in breach of the net debt and debt service ratios.” [1, p 8].
And. That $267m could be $500m before the terminal ever sees a ribbon cutting, much less their casino crowd flying in to gamble cash from God knows where. American Airlines is doing so well. Is a bigger airport worth pushing us into poverty and out of our homes?
Tsunami Zone: Holding Back the Sea with a Paper Cup!
They planned a “9.5 percent” increase in 2023 “recurrent” expenditures over the prior estimate ($21.35m), but that was before they passed the latest increase.[1,5] So, with 22% from global inflation and GST that converged last July, we’ll need 33% more income just to eat and pay taxes!
Think of it as having to work 7 days a week, so they can work just 5. Not to mention, paying them 12 months a year from a 6-month economy. That’s right. Their raises start with $4.8m this year.[1, p.5] Plus those increases detailed above, or about 30% more for “District 8” by the next election.
Recent budgets have shown 949 public servants when AUF left office, but 1,313 today.[4] They ran government on $190m the year AUF last took office. Now, bragging about technology, they can’t manage on less than $250m, including forcing us to pay for high school overruns.[2,5]
And. Revised plans for “total expenditures” rise from $234.4m last year, to $295.3m this year, $383.4m next year, and $450.2m by 2025.[3] It is like standing on the beach expecting to hold back an approaching tsunami hundreds of feet above one’s head. With a paper cup.
“Reduce Income Inequality” – A Policy Priority!
Before these documents, we had no assurances that we wouldn’t be forced, under law, to give our last dollar to an oppressive, demanding government passing one law after another for new and higher taxes – for the rest of our lives, and our families’ lives.
Now, we know! That is, we will be forced to give our last dollar to a government passing one law after another – to bankrupt us all.
This also explains their policy priority to “reduce income inequality”: Ta dah! Make sure no one can make a dollar! Income equality achieved!
But. These are just a few highlights of the Medium-Term Exploitation Plan. Both documents are on gov.ai, that is, assuming we can afford that “AI” domain after all these taxes. Read for yourself. Then, try to beg some really smart people to get elected on a platform to repeal GST and pass a balanced budget bill to end this exploitation. They would win. That is our only hope.
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. [1] A Citizen’s Guide to 2023 Budget (GOA, Sept 2023); [2] “House Meets to Present Anguilla’s Medium Term Economic and Fiscal Plan 2024-2026” (The Anguillian, 29 Sept 2023; Vol. 25, No. 42); [3] Medium Term Economic and Fiscal Plan 2024-2026 Report (GOA, Sept 2023); [4] GOA 2023 Budget; [5] “Another Supplementary Budget Passes in the House of Assembly” (The Anguillian, 15 Sept 2023; Vol. 25, No. 40).
