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Editorial
August 27, 1962
The Daily News Of The Virgin Islands
Charlotte Amalie, Saint Thomas County, Virgin Islands
What is this article about?
Editorial criticizes exploitation of U.S. Congress and Virgin Islands tax incentives for local industries, alleging unfair competition and favoritism toward officials' cronies, urging self-policing to maintain the laws for economic benefit.
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UNFAIR ADVANTAGE?
The Congress of the United States, in order to improve the economy of the Virgin Islands, passed legislation some years ago enabling an industry showing 50% or less of foreign raw material in a product, to import that product in manufactured form into the United States tax free. The aim of the legislation was to encourage the growth of small industries in the island and thus give a greater measure of employment to local labor.
The legislature of the Virgin Islands, in a similar effort to encourage industry, gives a generous tax subsidy of 75%.
Recently there have been accusations that these conditions are being exploited. Charges of unfair competition have been leveled at some of the island industries. It is charged that low-priced foreign goods are being imported to which is attached some sort of label to satisfy the letter of the law, and that the goods are then sent to the United States under conditions that place stateside manufacturing under a disadvantage. These firms are using their influence to modify the conditions under which we operate, or to have them eliminated entirely.
Perhaps there is more here than meets the eye. It does not take too close a look to see that some of the people who are foremost in receiving these unusual advantages are personal friends and buddies of the top officials of the territorial government.
Although the original purpose of the law was to provide more employment opportunities and to bolster the general business of the people of the islands, actually it would seem as if the unwritten aim of the present set-up were to enable a few cronies of officialdom to make a killing at the expense of others.
It is incumbent upon us in these islands to take the initiative to see that the conditions under which the laws were made are scrupulously followed.
We hope that the Congress will not remove from the statutes a law which is the backbone of Virgin Islands industry and our future economic stability. But, meanwhile, it's up to us to police ourselves.
The Congress of the United States, in order to improve the economy of the Virgin Islands, passed legislation some years ago enabling an industry showing 50% or less of foreign raw material in a product, to import that product in manufactured form into the United States tax free. The aim of the legislation was to encourage the growth of small industries in the island and thus give a greater measure of employment to local labor.
The legislature of the Virgin Islands, in a similar effort to encourage industry, gives a generous tax subsidy of 75%.
Recently there have been accusations that these conditions are being exploited. Charges of unfair competition have been leveled at some of the island industries. It is charged that low-priced foreign goods are being imported to which is attached some sort of label to satisfy the letter of the law, and that the goods are then sent to the United States under conditions that place stateside manufacturing under a disadvantage. These firms are using their influence to modify the conditions under which we operate, or to have them eliminated entirely.
Perhaps there is more here than meets the eye. It does not take too close a look to see that some of the people who are foremost in receiving these unusual advantages are personal friends and buddies of the top officials of the territorial government.
Although the original purpose of the law was to provide more employment opportunities and to bolster the general business of the people of the islands, actually it would seem as if the unwritten aim of the present set-up were to enable a few cronies of officialdom to make a killing at the expense of others.
It is incumbent upon us in these islands to take the initiative to see that the conditions under which the laws were made are scrupulously followed.
We hope that the Congress will not remove from the statutes a law which is the backbone of Virgin Islands industry and our future economic stability. But, meanwhile, it's up to us to police ourselves.
What sub-type of article is it?
Economic Policy
Legal Reform
What keywords are associated?
Virgin Islands Economy
Tax Incentives
Unfair Competition
Industry Subsidies
Government Cronies
Economic Exploitation
Local Employment
What entities or persons were involved?
Congress Of The United States
Legislature Of The Virgin Islands
Island Industries
Top Officials Of The Territorial Government
Cronies Of Officialdom
Editorial Details
Primary Topic
Exploitation Of Tax Incentives And Subsidies In Virgin Islands Industries
Stance / Tone
Critical Of Exploitation And Favoritism, Urging Self Enforcement
Key Figures
Congress Of The United States
Legislature Of The Virgin Islands
Island Industries
Top Officials Of The Territorial Government
Cronies Of Officialdom
Key Arguments
Legislation Allows Tax Free Imports For Products With 50% Or Less Foreign Raw Material To Boost Local Employment.
Virgin Islands Offers 75% Tax Subsidy To Encourage Industry.
Accusations Of Exploiting Laws By Labeling Low Priced Foreign Goods To Meet Requirements, Creating Unfair Competition.
Beneficiaries Are Friends Of Territorial Officials, Suggesting Corruption.
Original Intent Was Economic Growth, But Now Benefits A Few At Others' Expense.
Islands Must Enforce Laws Strictly.
Hope Congress Retains The Law, But Local Self Policing Is Needed.