December 7, 2013

Dear Sir,

The Bermuda Government is floating a $50million Bond for financial purposes, but this is a very expensive proposition which in the end will result in the following position:

Bond issue $50m

Bank fee @ 2% $1m

Interest on principle ($50m X 10 X 4.75) $23,750m

Total on repayment in 10 years to bond holders $74,750m

So, for the use of $49m the Bermuda Government will eventually pay out $74,750m

I believe that there are enough taxpayers in Bermuda who would be willing to take advantage of the following plan:

Let the Bermuda Government offer to land taxpayers a 10% discount if they are willing to pay for their land tax up front for a period of 10 years, This may be amended to 3, 5, or 10 years, if desirable.

Here is and example of a 10 year discount:

Assuming that 2,000 land tax payers with an average annual bill of $1,500 take advantage of the offer each of those taxpayers will give government up front $1,500 X 10 less 10% or $15,000 — $1,500 or $13,500.

Government will receive up front (2,000 X 13,500 X 10) or $270m.

There will be no interest payments and no redemption at the end of 10 years. It would however require a judicious handling of the funds.

This plan may be altered offering a larger or smaller discount for a longer or shorter period of time in order to achieve any desired financial goal.

The funds would need to be handled honestly and judiciously.

The Pickled Debaters