Reader’s Letter: Stimulate the economy, not government

POSTED: 08/12/11 7:20 PM

Dear Editor,

We must come up with an economic plan to stimulate our economy. I believe that tax cuts really do provide a stimulus and they provide flexibility. People who want to consume more can use their tax cut for that purpose; People who want to save more can use theirs to buy or reinvest in a business. They can also use that tax cut to buy shares in a business or start a new business which in turn create jobs.
Tax cuts are the perfect scenario during a recession, when prior over-investment has resulted in bloated inventory levels and poor private investment opportunities. Tax cuts are really a sneaky way to increase consumers’ credit lines. If we really want to stimulate our economy, we should put money in the hands of the people most likely to spend it. This creates good business and lots of cash flow.
I believe the government should allow local investors to buy shares in the airport, harbor, GEBE and Telem. This will not only make these companies stronger but it will also require them to live up to transparency and financial scrutiny or accountability. At the same time we will be creating St. Maarten ownership which is real nation building.

Economic growth means an increase in the amount of wealth that exists in a country–and all wealth must be produced. Production does not need stimulation from the government; it needs liberation from the government. What a productive, dynamic economy requires of a government is that it restricts itself to protecting property rights from force and fraud, and that government refrains from interfering in free production and trade. It is important for our banks to continue to lend money especially for houses, cars and personal business; this is the key for St. Maarten, because we are a consuming and service based economy. It is better when people build their own homes than when government builds homes for people. The main reason for this is that private property and private investment force people to be more responsible and ownership of home via a mortgage or a car loan produces insurance business. Insurance is the backbone as security to any investment.

I endorse giving all native St. Maarten people and Dutch citizens of St. Maarten a three year tax break for any new business they open. This is how you stimulate an economy and create ownership. That tax break can earn greater profits when you have to rent. Those funds can be used to buy more products that you can sell.
I am not afraid to say we should make a flat tax across the board when it comes to income tax, which is allowing all people to pay no more than 20 percent of what they earn to government. This will make people qualify for a mortgage loan or a car loan much faster and make the demand to lend money greater. Reducing the income tax will create more spending which will cause government to lose revenues on one hand but be rewarded with a quadrupling of revenues on the other hand because of the amount of jobs and profit that is being made. That is stimulating the economy and not government, while at the same time building a prosperous nation with ownership for our St. Maarten people.

I will be soon on vacation and you will not hear from me for a while. Let the government know if you empty my pockets you’re not my friend. And charity begins at home. Tax breaks should not only be for hotel owners. It should also be for the small business people of St. Maarten Heritage and all St. Maarten people. Keep hope alive; always condition your mind for the long term.
Yours truly,

Miguel Arrindell
The Patriot

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