Usain Bolt Vows Not to Compete in Britain Until Tax Laws Change

Jamaican Track Star and Olympic Champion 2012
Usian Bolt

The most decorated track star Usain Bolt have sounded his objection against harsh taxes by Britain.  Usain Bolt's  management , stated that the triple gold medalist (London 2012) would not take part in track events within Britain until her Majesty changes those punitive Tax laws. Usain  was asked by the media in London, why he doesn't compete in the U.K. more often.  he stated"As soon as the law changes I'll be here all the time." 

Usian Bolt is Jamaican's first 100 meter men's gold medalist, Current World Recorded holder, Current Olympic champion and Olympic Record holder, 200 meter Olympic Gold medal champion and 4x100  relay Olympic Gold medalist as well, and as such racks in a hefty sum annually. 

The British government has granted an exemption to income linked to Olympic and Paralympic competition. But normally Britain takes a cut of an athlete's worldwide endorsement earnings—that means overseas sponsors in addition to those in the U.K.—proportional to the time spent in Britain. By comparison, the U.S. only taxes nonresident athletes on endorsement fees paid by American sponsors. France does the same.

So if in a given year Mr. Bolt ran in ten races, one of which was in Britain, Her Majesty's government could collect income tax on one-tenth of his total income from sponsorships. Mr. Bolt's contract with Puma alone is worth $9 million annually. After his winnings at the London Olympics Mr. Bolt is set to double his endorsement earnings.  Currently the 25-year-old is already the highest-paid Olympian - outside of basketball and tennis - which featured at this year Games with estimated earnings of 20.3 million over the past year, according to US business magazine Forbes in a report last month.

Mr. Bolt isn't the only star athlete with a knotty relationship with U.K. tax law. In 2006, tennis champion Andre Agassi lost a legal battle to avoid paying U.K. income tax on endorsement deals with overseas sponsors. Rafael Nadal excused himself from this year's Aegon Championships, the traditional warm-up to Wimbledon, on fiscal grounds: "I am playing in the U.K. and losing money. I did a lot more for the last four years, but it is more and more difficult to play in the U.K." Mr. Nadal competed in the Gerry Weber Open in Germany instead. 

Superstars like  Bolt, Messrs, and Nadal can tailor their professional schedules to maximize earnings without risking damage to their fame or competitive standing. So the best athletes stay out of U.K. competitions, the events have less popular appeal, fewer people attend, and the country forfeits both the economic activity and the tax revenue. The lesson is that taxes influence behavior, and punitive taxation hurts everyone.

CEPEP Economics Won't Work.

Finance and Economy Minister,
Larry Howai

The newly installed Finance Minister, Larry Howai, indicated to a media house that a more efficient and equitable property tax has to be reintroduced in the country. "We have to bring back that property tax. It is costing the Treasury money (in lost revenue) that could be used to develop the country" he stated as he indicates his first major move, given his responsibility of moving the economy forward.

The "Axe the Tax" campaign which was mounted by the People's Partnership (PP) seemingly now impractical for T&T's stagnant economy. Howai, coming to his new job with a rich background in finance and economics, should be the first to know that "CEPEP" money cannot foster sustainable change in this ecomomic drought. 

Property tax has not been collected since January 2010, and figures shows the collection of such for 2007 as 82 million.  I am therefore forced to look at this move through a pragmatic approach. What can 82 Million do for the Economy of Trinidad and Tobago? A figure considered to be highly insignificant in a 50 billion budget, and can only be seen as a mere drop in the barrel. Given that the last budget allocation for CEPEP was 320 million, this 'property tax' would only be able to fund one third of CEPEP workers, and might I remind you that a further 240 million was sought to supplement the depleted 320 million, further decresing the significance of this "vital" intervention of property tax  to a simple 15 percent. 

So who are you trying to fool Mr. Howai? The general population is no expert in finance, and may not have lead any banks,.but we are not fools. 

Make no excuse for your the PP government. They are a group that lacks respect for self, integrity or rectitude and have displayed poor forms of political ethics. They have deceived this country without remorse and as such have tread on a slippery slope of no return. You are another instrument of deception within their arsenals, and  as such you must carry out their biddings, as yet another time they must reneged on promises made to the Masses. 

The people of Trinidad and Tobago would not be beguiled by your government. We are quite cognizant that property tax must exist. As you quite eloquently stated, "Property taxes exist virtually all over the world because if you own a property, there is a cost attached to it at the micro and macro level: garbage, sewage disposal and everything that goes with maintenance." However, do not suggest to the population that it must be reintroduced so as a 'Savior' which would offer T&T's economy salvation. Trinidad and Tobago continues to run on deficit financing therefore, offer to us some ingenius way  on getting us back to economic solid ground. 

So, what are we to do, given that even with a retroactive payment of the old property tax (for the last 3 years), not even CEPEP projects could be funded or maintained. It is therefore only logical and imperative that one must examine other means of stimulating economic growth. There has to be more innovative ways of stimulating the treasury Mr. Howai. One cannot merely concentrate on property tax (although it may be a start) to be the genesis of T&T's economic good fortunes. The country as it is, has been burden with a heafty Gas subsidy, enormous Education bill and our Social "handouts" are in the tune of billions. Thus, one must employ prudent policy making (in diversification, reducing financial risks, and containing the fiscal deficits), if the country's economy is to be re-ignited. 

So as you consider increasing the Taxes on the populace, as proven by this statement "To that end, the country should expect a cut-back on the prolific Government spending on transfers and subsidies—including the $4 billion fuel subsidy", please consider the ramifications of your first move. As Trinidad and Tobago awaits your announcements within your first presentation in the up coming budget, be reminded that 'CEPEP' economics wont boost this Economy. Much more than this superficial intervention would need to be employed to generate revenues and  improved economic performance. Think of ways to reverse this deficit spending, think of ways to become less reliant on dwindling oil and gas reserves. Think beyond this 'CEPEP' economics.