Dear Editor,
Challenges continue to highlight the hardships faced by the middle class as taxes and inflation rates continue to rise in The Bahamas. These rising costs, such as housing, medical care, food, and other essentials, burden middle-income earners and slow their income growth. Increased prices for both middle-income earners and small business owners only intensify these financial challenges. In my opinion, the government needs to enact policies that reduce the tax burden, tame inflation, encourage the construction of affordable housing for our population, and address the problem of costly healthcare. Offering tax credits for small businesses, decreasing barriers for small companies, and assisting in the development of the middle class will contribute to the economy’s steady growth.
Solutions:
Tax breaks for middle-income earners and small businesses
Prudent tax incentives are needed to lower critical costs for middle-income earners and small businesses. Broadening the base should involve decreasing VAT rates on food and other essential products and services that affect citizens’ daily lives. Support in the form of tax credits for homeownership and education costs can further ease the burden on family spending and make more provisions for their future. Additionally, tax incentives for small businesses will ensure they remain operational, thereby creating employment opportunities for the country’s citizens.
An affordable housing project is necessary so that more middle-income earners can own homes. The cost of constructing affordable housing can be lowered through government grants or by providing soft loans for first-time homebuyers. Success in mortgage approval and a reduction in down payments would continue to ease homeownership. This would also contribute to family stability, both financially and socially. Moreover, it would positively impact the economy, as the expansion of homebuilders and related services would result from increased home construction.
The general welfare of income earners will need to address issues that affect inflation and, consequently, the cost of living.
Sherman (2022) in the Nassau Guardian states that stable prices could be maintained, thus avoiding inflation, by controlling and setting the prices of goods and services necessary for the population. Simplifying the expected price range by introducing ceilings or floors for prices of foodstuffs, medications, and utilities could make life more affordable.
Measures such as removing VAT from medical services will reduce healthcare costs and ease financial burdens. This would improve local production, reduce reliance on imports, ensure price stability, and create employment opportunities through grants, loans, and venture and technical support for businesses.
Raising awareness among the public about financial management, investment, and available government assistance will equip middle-income families with the knowledge needed to navigate these challenging economic times.
Sincerely,
Jamal Moss
