Dear Sir,In my opinion, the 2020-21 budget had an opportunity to provide a clearer vision for the future, action on economic growth, and positivity on the direction of the island. Instead, it feels like a holding pattern budget. No new tax on imports is a huge plus. A projected small deficit is another positive. Perhaps the most significant change for local businesses may be the new payroll tax brackets for companies above $200,000 in annual salaries. These new brackets provide a moderate increase in payroll tax for small and medium-sized businesses trying to expand. I want to thank the Minister of Finance for this welcome change.Where I am most concerned is the apparent lack of focus on growth. We can do our best to shift tax obligations from the low earners to high earners, but this can be difficult to implement. A knock-on effect is that there will come a time when high earners decide they have had enough. We will see a flight of capital and a loss of jobs that bring in foreign currency to the island. We need to be careful that we aren’t pushing those contributors to the economy, whom we most need to retain, too far, and ultimately away from Bermuda. I feel we are getting close to that point.We hear the rumblings. There is only so much rhetoric a person is willing to take, especially when they don’t have the right to live in a country permanently. There is only so much tax a person is willing to pay into a system that doesn’t recognise them for their contribution to society. There is only so much Bermuda can take without having to give something back. I feel it is about time we as a country look at what we can give back before it is too late.The problems we have in Bermuda should be easier to solve in a growing economy. There will be less opposition and more options for raising tax revenue in a thriving economic environment. It should, therefore, be far more feasible to pay down our massive debt if we all work together with a vision for the future. We need a plan, and we need some positivity to make this happen.I believe the message is clear, and the concepts are simple. Bermuda needs to soften our stance on immigration and gently turn on the tap. Many negative commentators say it is too late. I don’t see it that way. There is still time for us to move from a protectionist mindset to one of growth and positivity. With a welcoming attitude and a willingness to embrace the outside world, all Bermudians will benefit in the long term. We will, of course, have to ensure that benefit is shared.By increasing our population size, we will add opportunities for entrepreneurs and small businesses to drive our economy forward. These entrepreneurs are job creators and a driving force of the local economy. With programmes such as Ignite Bermuda in place, providing access to support and a positive environment for young entrepreneurs, there is an opportunity to build a strong base for local businesses. I can only imagine how impactful this programme and similar efforts would be in an expanding economy.We need people to spend, investors to take on risk (and have a reasonable expectation of return), developers to build, and business to flourish if we are going to get out of this dire situation. The Government can best help by providing a stable economic environment. Tinkering with our medical insurance, our pensions, and our taxes has, from my observations, created an unstable environment. When investors are unable to see a clear vision for the future, they will often decide against taking a risk. They may even deploy their capital in other jurisdictions. The result will be an economy that continues to stagnate. Focus on a growing economy and tackle our social problems from a position of strength. It is as simple as that.Most importantly, I believe we, as Bermudians, must choose pragmatism over fear. While accepting the past, we have the opportunity to work towards a brighter future for everyone on this beautiful island. I see only one way out of this mess. It won’t come from negativity, stagnating growth, and finger-pointing. It will come, at least in part, from a healthy, stable economy, a well-defined plan for the future, a slowly growing population, and a positive environment for everyone that lives on this island.MATHEW MACDONALDSmith’s