The tax trick damage

| 07/08/2012

For almost two weeks after the political ploy of announcing the possibility of a payroll tax was initiated by the UDP, the community has regressed to being as divided as it ever was in its modern history. Thanks to Mr Bush's "strategy" to announce the payroll tax so that we could swallow a less bitter pill (soon to be announced), the international media has had a good laugh, the cayman vs expats sentiment grew to its worse, and local businesses faced uncertainty.

Some loss potential clients, and quite a few within the financial services industry have had to defend the country's tax neutral status.

But the worse part of this debacle is the very widely held and highly credible speculation that this was all intentional. That is, with no regard to the community division, or international reputational impact on the main sector driving the country's economy, the government went full speed ahead with its brand of local politics, with apparently the only remaining skill set that they possess to deal with a financial crisis.

And this nonsensical piece of politicking was as obvious as it was damaging: CIREBA alluded to it in their reported statement in local media, Wendy Ledger gave us the 'bait and switch' viewpoint, and there were dozens of bloggers on local websites saying this was the political play. So not only was it wrong for the country, it was also a political failure.

None of this will matter much to the UDP, because you see, the UDP is really only one man. And that one man operates with no rationale, little logic in what he does, says one thing on Saturday morning and contradicts it on Saturday afternoon. All on a whim, on the basis of the last person that spoke in his ear, on nothing more than raw and impulsive decision making from one man at any given moment.

Imagine for a second what it would be like if you were to use that same approach to decide which job offer to take or which school to choose for your child. Now consider what it means to operate like that when running an entire country.

And it is this modus operandi of the UDP that is the most worrying. Because regardless of the advice given by his political allies, local businesses and supporters, the leader of the UDP has shown time and time again that he and only he is King. And while no reasonable person would ever criticise a good leader for not having much of a formal education (because one does not need that to make good decisions if they surround themselves with the right expertise and actually use that support), everyone will want to see the back of a leader who shows no respect for others.

If there was ever an episode that gives the other elected UDP members a reason to take charge, it was this one especially because of its closeness to the upcoming election. But we should not hold our breath, because they are all quite happy it seems to stay on board while their captain speeds the ship aggressively towards the rocks.

Hopefully the people will remember the collateral damage of this incident on Wednesday May 22nd 2013.

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  1. Anonymous says:

    And how much is he planning on spending on his election campaign? He'll try to sit that in under some obscure title or another.

  2. Anonymous says:

    You're giving Mac too much credit to say this was a cunning trick of strategy.  I think he was and still is making it all up as he goes.  I don't think he even knows what's going to come out of his mouth next.  The fact that the expat tax was a stupid and badly thought out idea that could never have worked doesn't mean he didn't intend to go through with it.

  3. Anon-i says:

    I do not know about you all, but I surely will be better off with ppm taking the power.  I truly believe that ppm have realized their mistakes and will not make such ones again. Also, I don't not believe their is anyone out there who is "as" qaulifield as Alden to take us through the next four years.  Maybe he is not as out going as Kurt or Mac, but i dont need an out going person as my leader right now.  I need some who knows what they are doing.  Yes the PPM were not prepared for the economic down turn but how many countries can say that they were. Not even the US or the UK can say they were prepared.  If the down turn did not happen, would PPM be preceived to be as bad as some say.  If the only fualt that you can say about PPM is they spent too much on education, then thats a fualt i can live with.  I was upset for a long time at ppm but I do believe that they will be a better government the next time around.   If we as a people are not careful and start scattering our votes, the UDP can win and by default.  What you will have is 20% independents, 30% PPM and 50%UDP.    Please I advice you to be cafeful in your voting.  If there is not a true viable other party to take out the UDP, then we are really better with PPM.  At least we will have some transperanancy

    • Caymanian . says:

      How is it that Ezzard offered solutions publicly, yet PPM is still criticizing with no solutions?  Sorry, I refuse to vote for Alden and PPM crew.

  4. Castor says:

    The sad part is, what ever the announced new source of revenues will be, the "Nation Building Fund and the paving of parking lots will continue. How sad that we wil be paying for the old enhanced programmes, how very sad.

  5. Anonymous says:

    What scares this Caymanian most is not so much that Mac is not well educated but that he listens to no one. He and he alone makes decisions and they become more damaging for my country every day. 

  6. Anonymous says:

    This is so true. Everyone I spoke to was saying the tax was announced as a strategy because we all knew the fco was not forcing it. Proof in the pudding because they rejected it in the budget.

    • Caymanian . says:

      That they rejected this budget does not mean that was no their initial intentions. Remember Chris Bryant, former FCO minister demanding we implimented a direct tax. This was in Auguest of 2009

  7. Anonymous says:

    actually he is no longer KIng and he knows it. thats why he starting to act like this. everything is falling from under this joker. watch this space.

  8. poor man says:

    this writer is starting to sound like a decent voice of reason. im sure there are many caymanians with similar views and hope they all speak up.

    no one is listenting but we can still speak.

    right now my concern is those same poor people that the premier claims he doesn't want to hurt. who else does he think he hurt when they raise duties and tax on fuel? and who got hurt when they increase work permit on small business.

    Time will fix this and to answer article at end…i for one will not forget this foolishness next year.

  9. Anonymous says:

    I can't think of any government in cayman that understand the whole reputation thing.  what happened this past week was bad but they have done lotm worse in past years. remember when  certain politician said the country was broke? and when another one had to step down from a bank because it went wrong? what about the DUI incident etc.

    now we see the uk dont want whatever fudget mr mac sent to them. i can feel another TCI happenng but im praying thats not what coming.

  10. 2013 says:

    We are all ready for these excuses for politicians. Especially the one at top

  11. Anonymous says:

    The man was trying to protect Caymanians. What wrong with that?
    Would you prefer if he ha tred to put the tax on Caymanians. You can’t plebes everybody all the tyme.

    Lots of people here just want to take take tak and the government was just trying to fix that

    Now that he remove the tax we all still left with nothing

    • anon says:

      you definitely sound like one of those people he is trying to "protect." good luck with that dude.

    • Anonymous says:

      The "protection" offered by positive discrimination promote an uncompetitive nature and an entitlement mentality.  It also destroys self-worth.  Would you REALLY want to be given a position that you don't deserve just because you're Caymanian?  How utterly demeaning!  Positive discrimination and Caymanian protectionism may keep you in a job, but deep down where it counts you'll know you don't deserve the position; that you're keeping your job as a hand-out by the government.  I contest that proud Caymanians reject positive discriminantion.

      • Anonymous says:

        I agree. The idea of protection is a total misunderstanding by some Caymanians. They were never going to be protected because the tax would have caused some firms to lose staff and cause a bad effect on everyone.

    • Anonymous says:

      The Man destroyed all prospect of the protection of Caymanians with his mass importation of poverty which he continues to this day, making the Cayman economic model unviable. We now have to pay for his vote grabbing excess, for.

    • Anonymous says:

      HA HA – best UDP muppet spelling mistake ever:

      you can't PLEBES everyone – exactly what king Mac would like, for everyone but him to be a plebe. 

    • Anonymous says:

      "Now that he remove the tax we all still left with nothing"

      That says it all really.  Your goal is to get something out of this.  The problem is, you haven't paid for all the stuff you got before let alone the stuff Mac is planning to hand out next year.  And the tax would have meant you got less than nothing. Empty rental properties, empty bars and restaurants, empty supermarkets and stores and empty businesses.  You'd have been left with what you started with- an economy based on fishing and poaching turtles.

       

       

  12. Anonymous says:

    Let not start talking about next year yet. These jokers are not done with destroying this place. Wailting for the next big announcement from the big man. The trouble is they don’t understand first clue about reputation, because they dont have much of that themselves. I heard ezzard talking about that coalition thing and I was not into I but to be truthful that’s starting to look like not a bad idea.

    I can’t see certain individuals working together but that would be the right for cayman.

    Right now instead of putting food on the table I’m spending time trying to figure out where foolio an his crew are going next.

    • Anonymous says:

      i will bet that a lottery is the big announcement. one thing for sure with these idiots whatever it is it will be controversial and probably the wrong thing for the country.

  13. Anonymous says:

    This was very bad public relations. the idea should never have been announced without consultation. Business community saying this was all a surprise to them. And when they agreed something with premier he caused even more confusion by saying the tax is not off the table yet. I heard that the uk did not approve the budget. Where does that put us now?

  14. Anon says:

    Very well said once again 101. We desperately need new leaders . I am sick and tired of watching my country fall lower due to the actions of a few self centered politicians. I have seen some very bad politics from the current bunch and it’s time for a change.

    Please please all right thinking Caymanians . Let’s do the right thing next year. We cannot let it go down like this.

    • Anonymous says:

      I call on independant Caymanian business owners or just generally honest Caymanians to choose to run in their districts as as independants next year. I guarantee you will receive votes by virtue of not being a member of either party.

      I also call on the status holders that have not bothered to register with the Elections office to go and do it. There are thousands of you out there and you could make a difference between bobo and boob next year.

  15. anon says:

    good article but one correction: the ship has already crashed into the rocks, we just haven't accepted that yet.

    • Expat says:

      The ship can be repaired… stop preaching doom and destruction on Cayman!  Don't you love your country?!

      • Anonymous says:

        The ship has hit the rocks already, and whilst it can be repaired, its going to take decades to fix – to re-establish the stability and confidence needed within this jurisdiction to keep and attract back the business and investors that have been lost in the last couple of weeks, and will continue to leave due to all the political uncertainty here.

  16. not today bobo says:

    yep we all saw this coming too. not that the governemnt will care about the damage. they will just move on to spend spend and spend whatever extra income they get from the alternatives.

  17. Anonymous says:

    Well said. I for one will remember this next year when it really counts. 

  18. Libertarian says:

    The people will not forget. I listened to Independent MLA for North Side, Ezzard Miller this morning on Rooster 101 where he affirmed that a coalitiion government would do us more justice than the party-majority government we presently have in power. I absolutely agree with him there. And that is why I am not the only one pleading to people months before the general elections to not vote back in a party-majority government whether it is UDP or PPM. We know what happened in 2005 to 2008 under the PPM's tenure, how they blindly confided in their leader and the country experienced its worse economic downturn that it ever experienced with no auditing, so we couldn't know the exact figures. This cause everyone to vote for the UDP in 2009. When they came in, they had a chance to make a difference, but the members of the party did likewise, they remain mute and confided in their leader when he made controversal decisions, such as usingthe public monies to aid faith-base entities. They had the opportunity to remove him via a no confidence motion, but that was futile; moreover, the Constitution under the PPM had no provisions therein for the people to recall the Premier. Both parties UDP and PPM were all about securing their votes, and put voters and political gain ahead of what was right for the country. Party politricks is cronyism at its best. The party MLAs follow their leader wherever the leader goes. They do not think and stand up for themselves. They cry vote for me or convince everyone to "vote straight" and once they get in, they pay you no mind. Instead of directly representing their districts they end up representing the party and whatever interest there is other than the minorities within the districts. They are good talkers, study the way of speech, party trickery, and convincing people to see them on a pinnacle, but once they get in, you find them working for the well-of Caymanians and those big shots in our society with the money. Not saying Independent candidates don't have their own self-interest, but they are more inclined to look out for their district because they stand alone and rely on no party members to get ahead or pass the buck. Independent candidates are more inclined of thinking independently and standing up for what they know and believe to be true and principally correct. They take no sides, but the side of truth and what is right for the country. If we elect Independent MLAs for parliament, they will form a coalition government which will be forced to debate issues, reconcile differences and cooperate for the good of the country. You won't have a majority group in the LA withholding discussions to truck in their policies and laws on the country. If the electorate vote in more Independents in May 2013, I guarantee bills will be thought and talked more before actual passage, and the more critics in the house, the more refined decisions will be made. People, vote in Independents, spread the word to your families to do the same, that way no party on its own can achieve a majority, no MLA will be able to dictate and refuse to consult advisors, and do damage like this budget fiasco has done to this country. The reputational damage will linger for years to come if we continue to elect the same personalities and forget about the great important issues at hand. West Bay is a district that needs canvassing, people going in there door-to-door if needs be, to educate them to vote in Independents. Perhaps Ezzard could organize such a movement, but it needs to be done – the less party the better for the country.

    • Anonymous says:

      UDP will not win the next election. That would break the pattern. I'm afraid of PPM winning outright. You can be assure that my vote will be firmly behind the independants.

    • Caymanian . says:

      Education is the key.