Dear Editor,

St. Maarten is at an economic standstill. We commend all commissioners of the past and present governments for trying to stimulate the economy. They have good intentions, but the problem is with their ideology. Most socialists believe that if a government creates ways and means to collect more and more taxes, it will lead to economic wealth. Nothing could be further from the truth.

The government is a big consumer; it collects taxes from the people of the country to support Government expenses. The private sector, which is the backbone of any economy, is where the stimulus money should go. The people of St. Maarten need to know that economic prosperity is established when the masses have money, and not Government. Wealth in a country is when the private sector is booming and jobs are created; those jobs created will in turn bring more taxes for Government.

At present, the government is bleeding the private sector and work force (people of St. Maarten) with taxes they can not afford. That is on a direct path to a recession (low economic productivity, which leads to high unemployment). We need to keep Government as small as possible to cut cost, while creating ways and means to expand the private sector.

Feel free now to disagree with me, but I believe the best manner to do that is to establish a flat and direct tax across the board. All workers will pay 25 percent of their income. Let me explain: if you make US $10 a month, you will pay $2.50 in taxes monthly. We can leave the turnover tax for business, but reduce it to one per cent. This action leaves the private sector and work force with more money in their hands, which they will and can invest back in the economy, while saving more for themselves. More people will qualify for a car loan and a home loan or a personal loan.

When banks have the demand to lend more money, then is it possible to give you a higher interest rate on your savings or CD accounts. People of St. Maarten, do not be fooled. You should be happy when your company or boss makes money – it is in your best interest.

The trick in creating wealth in St. Maarten is to find ways and means for more people (Dutch citizens and foreigners) to invest in St. Maarten, and allow the bulk of the money to stay here. People will only do that if taxes are kept low. St. Maarten does not export or produce much; we are a service-based economy. To maintain a service-based economy, you must render good service while keeping taxes low. If you do not, no business will have interest in investing in St. Maarten.

When we motivate our people in St. Maarten and give them opportunity (low taxes) to invest in their country, only then can we create wealth. A rich government with a mass of poor people in a country (socialism) is a dead-end road. A small and flexible government with the mass of people carrying their own burden (capitalism) is what leads to wealth.

I personally believe that all local businesses that are established from 2010 and beyond should be given a tax break of two years. It would also be wise to encourage businesses to establish pension plans for their workers through an insurance company, which will motivate their workers to produce more. The government task is to provide opportunity for its people and help them to be self-reliant, and not to kill them with taxes or spoil them with welfare as an entitlement.

The people in the new Country St. Maarten must understand that they are responsible for their own actions, and not Government. Use wisdom. Take care of your health and live within your means. It is smarter to make children when you are married to someone you love. It shows personal responsibility. All these good behaviours create a better chance of your achieving wealth. Remember the world owes you nothing. The best thing you can do for yourself is to be responsible for your actions.

If you cannot do that, it is difficult to see how you can attain wealth legally and morally. God bless you. Keep hope alive. The best days are only possible when you use the right policies and the right attitude to foster success.

Miguel Arrindell