Budget 2008 SXM

Unfortunately I am not an economist so I can only give a layman´s view on the limited information presented abut the 2008 budget in the Daily Herald. The main point of which appears to be the 1% increase in the Turnover Tax, a tax that affects everyone equally.
My opinion, if anyone cares for it, is that Roy Marlin and this Govt have yet again demonstrated their complete lack of imagination by choosing the simplest solution to the island´s problems, financial and otherwise, problems they themselves are largely responsible for. But that´s just my opinion, I am very interested to hear yours.

And if there are any economist based proffessionals out there, we would love to hear from you.

Click here to Read More
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Dilay Herald Editorial - Tighten your belts - 23rd November 2007

NAf. 26M TOT increase linchpin of 2008 budget - 23rd November 2007

Draft budget 2008 shows 25-million cost increase 23rd November 2007

Island Politics | Flipper's blog | add new comment

Submitted by Flipper on Mon, 2007-11-26 04:57.

There's more to come
Anonymous (not verified) | Mon, 2007-11-26 10:04

I'm no financial expert, but I've seen this movie before. It was called Aruba. everyone likes to talk about SXM obtaining it new status etc etc. All fine , I voted for that as well. But nobody seems to be wondering how exactly are we going to pay for it. I did, and I've been preparing for this. This time it's the turn-over-tax, there will be more taxes to come. Aruba went through the same thing when it achieved its seperate status. It has to be paid for. Are there other creative ways? I have no clue, I'm not an economist. But this is probably the quickest route government could find to meet it's financial expectations. We can quabble all day, shoulda this or coulda that. But this is where we're at. And as we move closer to seperate status, the people of SXM better get ready to tighten their belts for real. It's a reality of the situation we voted for. Not so much of a government not being "creative"....My 10 cents.

TOT 4%
Anonymous (not verified) | Wed, 2007-11-28 00:28

THe thing about the 1% increase in TOT is just for the island government to finance their deficit to the central government. The increase will go directly to Willemstad to pay for the AOV or govenment pension fund which St.Maarten neglected to pay over many many years. What will happen is your daily items purchased will become more expensive. The wholesaler sells to retailer @ 4% increase the retailer sell to the consumer another 4%=8% increase on top of their operational cost.
There's also a new condo tax coming up, but if you purchased you lovely Condo from a US based company and you're not registered on the island how are they going to collect. Remember, many home or condo owners come to the island as tourists. And who will determine a condo from a house or high end apartment. I guess the lawyers will find the loopholes in this one right away.

There's absolutly no money for new roads, thanks to ROY, but we still find a way to lower the number plate fee. Why can't we sell, like Anquilla, a temp license fee to drive. The fee can be collected from the rental car company, and it stays here. I see no reason why we cannot pay a garbage collection fee, which can go toward environmental concerns and a suitable solution for our dump, which by the way was smoking like hell @ 3pm this week.

How are we going to pay for this genius of an idea of a road thru the lagoon and the road from caybay around to cayhill belair area? The idea to make the arnell rd, which folks call the cakehouse rd, a two way rd, so we'll need 2more roundabouts, to keeps us going round and round.
I think it's time to tax casino's based on the drop. All we need to do is find some honest controllers- that might be wishful thinking.

Luxury Tax
Local Hero | Wed, 2007-11-28 14:45

Some people won´t like the idea of a luxury tax, SXM prides itself on being a duty free port and is promoted as such. However there come a time when you just have to accept that the island needs money and a Luxury Tax, on non essential goods is a huge source for those funds.

A tax on all cigaretes, say 50c per pack would go a long way towards paying for a quality national health plan for all SXMer´s. 3% on beers, wines and alcohol imports would cover huge improvements in our schools and youth orientated programs. A vehical import tax based on the value would pay for our roads.

Sorry tp those who don´t agree, but if I was offered a choice to pay 4c more for a beer and have our children getting quality education then I would be very willing to pay it. Same goes for cigarettes (I am a smoker) and for my car.

There are creative ways to raise money out there, they can be geared towards those who can affoird to pay and this rise in TOT hits everyone, the small man hardest. A well known question (at least where I come from) is this.....

The collection plate is passed around the church, the rich man puts in $1000, the poor man puts in $1. Who gave the most?

St. Maarten has been living and surviving on the cheap for far too long, just about every government dept is underfunded, under staffed and poorly run, the lack of well thought out policies doesn´t help either. I am willing to pay more, but only if it is related to and goes where it is needed. Yes, all these sorts of taxes need cooperation and agreements with the French side, but they need money too and it´s long past time the two sides put their pride and started working together on these problems, which both sides face.

I agree with Flipper, this rise in TOT shows clearly the lack of creative thinking and a lack of balls to make serious decisions that are desperately needed. The easiest solution is not always the best, but this govt always goes that way and usually it is late too

LH

Luxury Tax and others
Anonymous (not verified) | Sun, 2007-12-16 00:08

There should be a garbage tax, property taxes for all and most of all a tax on Jewelry and Luxury Items. St. Thomas prides itself as being duty free, they were smart enough to hide the tax in the price, which goes to Government. The tourist normally doesn't know the difference, and doesn't care, it is still a deal. I have met people from the Cruise Lines that thought a carton of cigarettes for $18.00 was a deal and it was, yet here in Sint Maarten on Front Street you can buy the same carton for $11.00., the same goes for Jewelry, there is a big difference in pricing in St., Thomas and Sint Maarten, yet we have some of the same stores. Wouldn't that extra $7.00 U.S. dollars be nice tax revenue (provided we have a checks and balance system with the stores that it is paid monthly to the Government.) and think of the Jewelry, when someone spends $10.000.00 for a diamond an extra $500.00 U.S. dollars as a tax doesn't really matter to them. If they are on Carnival Cruise Lines however you will lucky to get a sale of $100.00, yet our Tourist Office is pushing for more Carnival Passengers while St., Kitts and Curacao are catering to Princess. A Garbage tax would be great provided it is picked up in front of our houses. There would be no need for an increase in the TOT, besides the Governor is trying to run most NV's off of the Island, unless of course you own Ace Hardware, May's, Prime Distributors, Le Grande Marche or some other huge company. So much for trying to obtain a middle class. There goes the neighborhood!

Taxes Etc.
jbpesq | Fri, 2007-11-30 14:14

The Island tax and revenue people really missed the boat by not devising an impact fee that could have been applied to all new condo or hotel type condo projects. Many municipalities in the US apply this impact fee to builders & developers on a per unit basis, obviously the builders bake this cost into their selling prices. New developments have an impact on roads, schools, water, sewage, trash removal, police protection etc. A substantial fee $5,000-$8,000 is not a lot of money to pass on to the buyer. It’s no big deal if, instead of $350,000 new condo it is now $355,000. The additional fees help the government create and repair the necessary infrastructure to accommodate a higher population.
Buyers are realistic enough to understand growth of a population cost some money. They would rather pay the money knowing that real improvements are being made and therefore their property can appreciate. It seems that most of the new projects are not yet completed or sold, maybe this concept can still be enacted. ????
JBPESQ

Taxes Etc. II
Anonymous (not verified) | Fri, 2007-11-30 22:22

Great idea, but what if Government does charge that fee and nothing is done. Where is the money that is collected everyyear for Roadtax. It sure hasn't been going to the roads! People just don't trust this Government and the word is around and if someone comes to look at our little piece of Paradise dont' you think they are going to question the traffic the roads, etc. If they have children and face one ordeal of L.B. Scott Road in the morning they will figure it out soon. I'm surprised we havn't had more road rage. I'm sure it is about to come. I truly don't believe that all of those vacant and soon to be built units are all going to be tourists., eventually their will be a "Fire sale" for the locals. (about time). We are chasing them away as fast as we bring them in, or then again perhaps the attitude is you've just been f---ed byThe Broker, why not, the likely hood is that he or she will be here for a one year contract anyhow.

luxury water
Anonymous (not verified) | Thu, 2007-11-29 10:13

What was once a normal commodity is now a luxury. How many of you out there have been without water? Have you been to work today without taking a shower or had to revert back to the old days by taking a shower out of a bucket of water.
This is ridiculous, enough is enough. It's time to scream at Mr. chairman of the board, Mr Marlin or the new managing director. How long can this go on.
When you call Gebe's emergency number, the person on the other end have no clue.
Today in 2007, we have to purchase water from the French side at 5 euro a cubic meter. With those prices, Gebe have no choice other than to increase prices down the road. These prices will not come with better service.
Where's the planning???
I'm sure there are projections on water usage and related studies and proposals for all the new homes, condos, hotel rooms spouting up from the ground.

We as locals have had enough with what the Herald called as short sightedness by both Government and GEBE.
Please someone, post the cell numbers of the sitting board members of GEBE and demand service

Roy is no economist either
Anonymous (not verified) | Thu, 2007-11-29 07:56

Flipper you state that you are no economist, but neither is Roy Marlin. The island is also suffering from a shortage of running water, so Roy is also not a person of foresight and a physical planner as he gave out building and planning permits for 2 years and continues to do so without consulting GEBE and their management on the water capacity. We are left to wonder what Roy is good at. In any other country his capabilites would have come under scrutiny even from his party, but here? well Don't stop the Carnival!

It is not Gebe..It is Roy and nobody else !
Anonymous (not verified) | Thu, 2007-11-29 21:48

GEBE has nothing to do with water production. Gebe distributes water that is produced by a company under contract with government. Water production is the responsibility of the government and not gebe. Marlin has fired the water production company because he smelled some sweet swiss chocolate. The old watercompany is now packing their bags and don't give a hoot about your shower or hot tub anymore. The guys at gebe really can't help this so we should stop blaming them. If there is no water to distribute what do you want them to do? Our government has been formed by the same party and has the same leader for many years. Marlin has been part of this goverment for the last 8 years. He shown us that he is great at fucking up things. Look at the environment, the roads and traffic to name a few. You may now add our water woes. He deserves to be fired. As a matter of fact we should demand his resignation.

One ship
Anonymous (not verified) | Fri, 2007-11-30 01:14

Just to add to the discussion, I'm not gonna get into blaming any one particular person or entity. But everybody is in one ship. Management of GEBE, with all the engineers also gave the green light for the EXCO to contract the soon to be old water company. At that time (the time of Mr. Lambert and THEO, Not Roy, strange how this is forgotten), everybody in the boat agreed that the company was adequate enough. Nobody was thinking about the long term and SXM's rapid growth. A bit near-sighted as usual. Exonorating GEBE 100% from our water woes is also not totally fair. I many areas, GEBE's distribution system is horrendoes with old pipes and terrible overall infrastructure which also causes water problems. This could be one of the reasons you have never and probably will never hear GEBE state vehemently that "we are not to blame" cause that would be totally false. We can fret about government "firing" a company so to speak, but what would the alternative be? The company has proven it cant produce the amount of water needed, so a change had to be made. Yes, our government should have had some vision in terms of SXM growth. Yes, they should have carefully examined if the contracted company would be able to adjust to said growth and maintain optimal productions levels. But this is where we are. No need to harbour on those things, something had to be done. And to that end a new cmpany was brought in. I guess the point I'm trying to make clear is that all parties are to be held accountable here. One ship, one collective blame.You and every citisen of the island gets the opportunity to voice his or her dissaproval at the polls. You will get that chance again. But the last time I checked, more than 400 people thought Roywas doing a fine job (funny eh). One last thing, you mentioned demanding Roy's resignation. The day, the people of this island demand any such thing, will be the day it snows in sunny SXM.

The Majorotiy Asked for It
Anonymous (not verified) | Fri, 2007-11-30 00:00

We bitch and complain about this government, but yet vote them back in again. Where is the intellect I keep on hearing about of the people. Apparently the majority easily swayed, but for so long. The last election we had our chance and blew it. What a government, we just keeping on switching their portfolios so they can be con artists in all related fields to this so called Government. Impeach them all and start over with a clean slate. The price of water and electricity far exceeds that washer or dryer or Refrigerator that supposedly (what a surprise) given for the vote. I'm sure they still look nice and new, but how are you going to afford to operate them. Oh and by the way did Roy order the two OIL generators for GEBE, now that oil is nearly $100.00 per barrel. It is like the movie Dumb and Dumber!!!

Is it Aqua design that was sent packing?
Anonymous (not verified) | Thu, 2007-11-29 22:42

The water plant you say that was sent packing, is it Aqua Design? I also heard that their contract was not renewed in light of the big Air Fin contract that should be online soon. But in the meantime, did Roy think we forgot about him as ex-Commissioner of over development and massive concrete? and that he can now hide behind a new title as Commissioner of Tourism? He still remains the Chairman of the board of GEBE- while he remains in this position he will be taking all decisions and be monitering Management of GEBE. Poor Mr. Brooks he won't be able to stand his own ground as he has a contract himself and can be fired anytime. if GEBE had any balls, they would be out speaking to the press and explaining the truth. Instead on PJD2 Sarah was telling her story how a little boy in school asked her why there is no running water and she did not know what to tell him. she said she would ask Commissioner in charge of energy.... rather pathetic for a leader of government to say something like this. Was she not aware of what Roy has been doing for these past years with the express line for building and planning permits?

New blog about water
Flipper | Fri, 2007-11-30 05:47

Guys, Hady posted a new blog post about water, this one is about the budget. Please can you post there instead so that discussions are on related threads.

Flipper

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