Premier: This Party Will Lead Tax Reform ‘To One That Is Fairer & Yes, One That May Contain Taxes On Incomes’

“But what if there were 70,000 or 80,000 customers to battle for? That leads to more opportunity for entrepreneurship, more opportunity for growth, and more opportunity for wealth creation as the pie is bigger and everyone can earn more.”

Highlights of the Premier Burt’s full speech:

I start this speech mindful that the last time I spoke at an Annual Conference for our beloved Progressive Labour Party, it was in October of 2019 to a large crowd in a church hall, with not a mask in sight. Tonight I address you and the country virtually, as our reality has changed…

The pandemic has changed all of us, and the change that it has instilled within me is that I am more determined than ever to press ahead with our agenda. I will ensure that this party delivers on our mandate of transformation – which is necessary for my children, for your children, for our children to have a future in Bermuda.

This Party will lead the reform of our system of taxation to one that is fairer and yes, one that may contain taxes on incomes. In a globalized society where the world is changing, for our economy to be sustainable, we must have those conversations that we were not comfortable having before. When the leader of the One Bermuda Alliance joins the Leader of the Bermuda Progressive Labor Party in supporting the Fiscal Responsibility Panel’s recommendation for a tax on incomes, then clearly we are past talking about whether or not it is time. It is now time to work together to implement overdue changes in a fair and balanced fashion.

We must also acknowledge that an essential benefit of changing our system of taxation is to deal with the most pressing issue in Bermuda, the cost of living and the cost of doing business. The main taxes that Bermuda uses to collect revenue: customs duties, payroll taxes and taxes on fuel, increase the cost of living & the cost of doing business.

A fairer tax system can help us reduce our cost of living, which in turn will boost economic growth, and that is why it is essential that it be advanced.

As we move forward with tax reform, expect fear-mongering and alarmism from the entrenched wealth in this country who benefit most from the existing system. We saw it recently when I made a comment about tax reform and simply pointed out that those who own dozens of rental properties pay no tax on any income from those properties. This was spun to say that I want to tax all rentals – including those small renters who may rent one or two apartments. This is NOT the case and a correction was made after the paper was printed. But, the damage was done and they successfully sowed seeds of doubt about our intentions.

At the same time, the enemies of change strangely manifest themselves in those who are most likely to benefit from the change they oppose. Bermudians with little to no access to inter-generational wealth are often the loudest opponents to reforms that are meant to provide relief to the oppressive inequality that is the biggest challenge to Bermuda’s collective progress.

Strangely, the most ardent public defenders of the current taxation system are often those who are worse off under it. Our current system sees those with lower incomes paying a higher percentage of their income in taxes, than those who may own multiple businesses & properties with sources of unearned wealth. This imbalance exacerbates inter-generational inequality and hinders economic progress.

This does not mean that we should punish success, but it does mean that just like every other country in the world who has established fair systems of taxation – we must recognize that the impact of income inequality, which is at the core of Bermuda’s problems, will not be solved if structures that exacerbate inequality are left in place.

I look forward to the work of the new Tax Reform Commission and I welcome the Opposition Leader’s endorsement of the need to have a fundamental change to our system of taxation. I know the changes that our Minister of Finance, the Hon Curtis Dickinson, will implement will be fair, will balance the needs of international business and local business, and will ensure the sustainability of Bermuda.

Earlier, I said that our demographic changes will not magically resolve themselves. Immigration policy is controversial but economic reality should not be controversial. In a modern and globalized economy, where people do not need to live in Bermuda to work for Bermuda companies; and with an ageing populace, we cannot fix the burning issues of higher taxes and high cost of living without increasing the amount of people that live and work in Bermuda.

This does not mean that all persons need to be imported, if we do our job to make Bermuda more fair, there are Bermudians that will return. However it is vital that we shift from the false choice of: ‘is population growth good or bad’, to a mindset of: ‘Growth is essential – and if we are going to have it, how do we ensure that growth benefits Bermudians who have been left behind’.

Immigration policy reform doesn’t have to be couched in yesterday’s terms. In 2019 when I addressed the opening of the conference, I spoke on this matter extensively. In 2021, post-pandemic – it is up to us to redefine the debate. It is not a question of good or bad, but a question of how do we ensure that our policies benefit Bermudians who have been left behind and ensure that Bermudians are in a position to benefit from economic growth.

For example, Economic Investment Certificates, which were in our 2020 Throne Speech, takes an existing policy of residential certificates and marries it with our socio-economic ethos. Simply put it says that persons who wish to reside in Bermuda must make investments that benefit our Bermudians either through support for education, sporting clubs, the Bermuda Trust fund, real estate or other vital investments that the country needs. Residential Certificates exist now, and they are only available to the wealthy, but there is currently no need for persons who have access to them to invest in Bermuda.

That is what I mean when I say we need to stop having yesterday’s debates and start collectively designing the future that benefits Bermudians. I am proud of the Minister of Labour, Jason Hayward, who has taken to revising old policies to put Bermudians first to ensure Bermudians benefit.

Bermuda – we need a change of Mindset as we approach the next five (5) years. The inequality exposed by the pandemic has created an uncomfortable ground for persons whose mantra has never been to put people first. The demands of economic recovery are an affront to guardians of the status quo because “change” is no longer a campaign slogan but it is the key to survival.

This Progressive Labour Party is an institution born out of struggle and a thirst for justice and equality. Our history and our core values mean that we are ideally suited to meet the challenges of this current age. We are a people-first Party and so a Platform, a Throne Speech and a Budget that put people first come naturally.

The question for us is: Are we truly committed to change?

The business of government is what every set of leaders inherits in this system. We meet rules, regulations, processes and red-tape at the front door, and before we know it, an agenda for change has its wings clipped by a system designed to make haste slowly.

But the question remains: Are we committed to change?

Do we believe that things should change or are we content fighting the battles of 30, 40 or 50 years ago? Some of us seem to believe that unless we’re at war with someone, there’s no reason to live. So rather than help, we tear down; rather than refine we kill something before it has the chance to breathe; rather than join the push for change, we flex and try to block something just to prove a point.

So for those who profess to be friends and claim to be partners in our cause, let me say this: I am crystal clear what you are against, but does your opposition extend to outlining what you can support? That is what governing is about……we do more than oppose…..we have a duty and a responsibility to be constructive, help advance the agenda we all agreed to, and make each other better. Being a member of the Committee Against Everything is easy; try getting something affirmative done as an alternative, and you will see just how difficult that is.

Let me be clear, criticism is good; it is healthy, and it is necessary. Well-founded criticism keeps us on course, refreshes our moral compass and provides a guide for the work we are charged with doing.

However, our mindset cannot solely be tied to a time that no longer exists. We have laws in our country that predate our political party, we have policies in this country that predate the building from where I speak to you tonight, yet the mere talk of change to edicts from a bygone era often elicits a reflective response of no, no, no.

We must learn to adapt to change, and Bermuda, we must change in order to survive If we do not change and adapt to the post-pandemic world in which we now exist, then we will not live up to our promise as a country.

This is what I am committed to as leader of the Progressive Labour Party; this is our job and our mission – it is the core of our election slogan – rebuilding Bermuda with Bermudians at heart.

Yes, the cause is ambitious, but I believe that we are called for such a time as this. Let us look at how this country has managed, through our own ingenuity, to work together as a community. We have been able to succeed in this pandemic in ways that so many other countries larger than us, richer than us, with more resources than us have failed.

If there is anything that this pandemic has taught us, it should give us confidence in ourselves to be the master of our own destiny. It should show and demonstrate to us how powerful of a country we international business or local business; Trade union or Chamber of Commerce; PLP or OBA; Black or White – we were able to work together towards a common good.

Right now with the difficult road ahead that this country is facing, nothing can be more important than a collective embodiment of unity and the will to persevere. The challenges are steep, but as the last year has proved – if we work together as a nation we can overcome.

But family we will not overcome by clinging to the past, we will not overcome by talking about the good old days, we will not overcome by looking backwards and saying we can’t change the way that we’ve always been doing things. In many ways the world has passed Bermuda by, and this party under my leadership with our new mandate, will drive Bermuda to not only catch up, but to excel.

We will use this parliamentary majority to execute on the plans and vision that were laid out in our platform, supported by the vast majority of the voters who endorsed our plan to rebuild Bermuda with Bermudians at heart.

But this government will not just be a government for the supporters of the Bermuda Progressive Labour Party, because to move toward nationhood we must have unity and a sense of purpose that transcends divides.

That does not mean that this party will compromise our ideals, that does not mean that we will abandon our central tenets of social & economic justice. For our country to progress as a nation we have to have unity. That unity will not come from pretending that there are not divisions that exist in our society. That unity will not come from brushing under the carpet the painful scars of racism and discrimination that still exist in our community today. That unity will only come from the collective work to dismantle that painful history and to finally tackle entrenched economic inequality in Bermuda.

We are committed to that change and I am committed to putting every ounce of effort into the work of driving that change. I promise you it will not be easy – and I promise you that at some point you will push back against us and say no this is too much change; but Bermuda – transformation is necessary and must happen to ensure we survive as a country.

I stand before you today as the leader of this party and also as the leader of this country which has not yet written its next chapter. I pledge to you today that we will be committed to ensuring that we focus relentlessly on execution. Our caucus held a retreat this past weekend and that was our focus – strategizing how we can work better together, all collectively playing our part, to ensure faster execution of our election platform.

Bermuda – If you want to be a part of this journey, this journey of transformation – then I urge you to get involved. Join the Progressive Labour Party at www.plp.bm , apply to join a government board at www.gov.bm , or make your voice heard by participating in consultation exercises as we work to transform this country.

If you feel in your heart that we need to step it up in Bermuda, I need you to take it to heart and be part of the citizen army that will build the future.

Yes I know that it is easy to argue, yes I know that it is easy to criticize, yes I know that the hyperconnected nature of social media makes us seem as though we are more divided than we really are. But at the end of the day the only people that are looking out for Bermuda are us Bermudians. We are the ones that are here and we are the only ones who can work together to change our collective future.

For those who supported us at the polls, and to those who still vehemently oppose us on the blogs, The Progressive Labour Party has formed the Government of Bermuda due to the result of a fair and democratic election – and our success in office will be Bermuda’s collective success.

As Barack Obama once said, “The future rewards those who press on.” That, Bermuda, is what we must do right now. Press on, persevere and take care of each other. Let’s strive toward that future and, working together, we will succeed in rebuilding Bermuda with Bermudians at heart.