On May 2nd, I joined the march led by the People’s Campaign from Victoria Park to Parliament, where Premier Cannonier accepted a manifesto from the campaigners that focused on equality, jobs and justice. These themes are not new to Bermuda, and have brought peaceful protesters on multiple occasions throughout our modern history. Occasionally, throughout this same period, peaceful protests have turned into riots, because Bermudians felt their inherent rights to equal treatment, equal opportunity and blind justice were being trampled on.

The multitude of people that marched in support of the manifesto was impressive and recommendations, in particular, that drew my support were” (I) Government must implement an equitable taxation system, and (II) Every person should be entitled to a liveable wage in proportion to the cost of living. My poster read “Increase Taxes on High Earners and wealthy Land Owners- Increase the Minimum Wage.”

The People’s Campaign appeared to have been galvanised by Pastor Tweed of the St Paul’s AME, and the mandated recommendations for economic justice are similar to other calls from the global Christian community.

In 2011, the Church of England appointed Ken Costa, a former chairman of the UBS Europe and Lazand International, to conduct a report on bridging the gap between the financial sector and ethics. There was concern by Anglican Church leaders that the exuberant irrationality of market economy over the past two decades had shifted moral foundations with disastrous consequences.

In 2012, Christian leaders in New Zealand decried the widening gap between the lowest and highest income earners, in a country that has one of the highest rates of income inequality among developed nations. Six denominations fostered debates on income disparity (Anglican, Baptist, Catholic, Presbyterian, Methodist and Seventh Day Adventist).

In 2013, Pope Francis discussed the economic crisis as having created fear and desperation, diminished joy of life and increased violence and poverty as more people struggled to get by in undignified ways. He noted that, “while the income of a minority is increasing exponentially, that of the majority is crumbling.”

Income Inequality Weakens Economic Growth

Last year the Associated Press conducted a survey that found that the majority of economists think income inequality in the US is weakening its economy. French economist Thomas Picetty made headlines last month with his message that income inequality in the US looks like Europe before WWI. These examples of both global Christian leaders and professional economists calling for income inequality to be addressed are based on the same foundation and principles as the People’s Manifesto presented to the Premier.

At the January 24th, 2014 World Economic Forum, business and political leaders gathered in Davos, Switzerland to discuss the improving world economy as well as evidence that has emerged regarding how much the rich have become richer and how much the poor are falling behind. According to the World Economic Forum’s Outlook publication, “Income Gap and Unemployment are to Dominate the International Agenda in 2014,” widening income inequality was the risk most likely to cause serious damage to global economies in the next decade.

On March 1st 2014, the International Monetary Fund warned that wide income inequality can slow economic growth and announced ways to reduce it. Its recommendations included (1) Raising property taxes, (2) Taxing the rich more than others, (3) Raising the eligibility age for government retirement programs, and (4) Reduce the tax breaks in advanced economies that are more likely to benefit the wealthy. This 188 member nation body stated in its World Economic Report that sales tax (equivalent to our 25% purchase tax) can worsen inequality, while taxing on income can be used to reduce inequality. Notably, the IMF research paper concluded countries with steep income inequalities are more likely to have briefer and weaker periods of economic growth and apparently Bermuda seems to fit this picture.

Last month, Nobel Prize winner in Economic Science and Yale University professor, Robert Shiller was interviewed for the New York Times. In this interview, Shiller said that the US should take action to protect against the future fallout due to growing income inequality between the rich and the poor. He recommended that a contingency plan proposal be put in place that would automatically raise taxes on richer people if inequality gets worse.

These global concerns and recommendations from reputable international bodies and economists support some of the ideas expressed in the People’s Manifesto, such as implementing an equitable taxation system that would structure taxation based upon income and value of assets such as property which in other countries is taxed progressively higher the more properties wealthy landowners and investors own.

Increase Taxes on Higher Earners

The medium income of Bermudians is $57,414 annually compared to International Business workers medium income of $120,726. However the argument by one of the writers to the Editor of The Royal Gazette that only non Bermudians would be affected is refuted by the Government Survey 2013. Statistics reveal the medium average income of employees in the Hospitality Industry is $35,243 with jobs held predominantly by guest workers therefore this sector would not be impacted by a tax increase. Middle class Bermudians could shoulder $100 more per month in taxes for salaries starting at $70,000; employees earning $80,000-$100,000 increase tax $150 monthly; $101,000-$175,000 increase tax $200 monthly: $176,000-$200,000 increase tax $300; $201,000-$250,000 increase tax $400 and so on. Most nationals from Canada, the United States, the UK and Europe have their taxes waived for a limited period of time while they work overseas and they enjoy negligible tax on their salaries by comparison to their country of origin. That’s exactly the point raised by the IMF when it recommends reducing tax breaks in advanced economies that are more likely to benefit the wealthy. I’m not suggesting a flat tax on income but rather incremental affordable increased taxes.

Tomorrow Ms Pooley outlines her argument for taxing landowners and increasing the minimum wage.