policy based on income will have come as something of a shock to most Bermudians. Bermudians have a long history of rejection of income tax. A generally middle class country has believed that the rich avoid income tax, the poor are relieved of income tax and the basic burden falls on the middle class.

During past elections the PLP, most of whose supporters are middle class, has been very careful to say that it supports tax reform but not to say anything that indicates that it supports income tax. Indeed, the subject of income tax is the one issue the PLP has held as strictly taboo. It has generally been thought that while the PLP flirted with income tax it was frightened to say so.

Late last week the PLP candidate in Pembroke West Central, lawyer Mr. Philip Perinchief, elaborated on comments made at a youth rally at St. John's Field and said the PLP was working on a new tax policy based on income but the policy might not be ready for the general election campaign. He agreed income tax was a touchy subject politically. Mr. Perinchief said, "Although the PLP have not formally advocated income tax, basically we are discussing what are better ways of distributing the wealth, and just looking at various progressive taxation systems and proportional taxation systems.'' At the rally Mr. Perinchief seemed to get support from Pembroke East MP Mr.

Nelson Bascome, Shadow Minister for Health and Social Services. "In Bermuda, it is unequal in terms of what we pay and what they pay. We may need to sit down and talk about this a little more.'' But the issue was made mysterious because accountant Mr. Terry Lister, chairman of the PLP campaign committee, said the PLP was not proposing income tax for Bermuda. Mr. Lister did not repudiate Mr. Perinchief's comments but said the party did not endorse them. Mr. Lister said, "We will not resort to income tax, because we do not believe it is necessary.'' There has long been debate about whether or not a PLP government would enact income tax. It seems entirely possible that the PLP could be preparing a tax system based on income in case they get elected. Mr. Perinchief may just have "spilled the beans'' when he was supposed to keep quiet in the days before an election. Maybe Mr. Perinchief told the voters the truth about the PLP and taxes and Mr. Lister's denials are damage control, because he knows that little in Bermudian politics upsets the voters more than the suggestion of income tax. There were clear indications over the weekend that some of the more senior people in the PLP were upset because of Mr. Perinchief. But, as a shadow cabinet minister Mr. Nelson Bascome is in a good position to know what is going on and he did not deny the suggestion as Mr. Terry Lister did.

Mr. Lister is clearly on the more conservative wing of the PLP. The "tax policy based on income'' suggestion by Mr. Perinchief may indicate that the leftist wing of the PLP, which has traditionally dominated the party during years between elections, is having its say.