Expat tax on hold
(CNS): A group of local business people claim that they have proposed alternatives to the expat tax which the premier has accepted. Although there has been no confirmation yet from the premier himself, the group of private sector representatives said McKeeva Bush has agreed to make a statement on Monday evening at a public meeting at the Mary Miller Hall, where he will outline the proposals made by them and others to replace the controversial 10% payroll tax on work-permit holders. The six men and one woman released a statement Saturday morning about the development in order to “relieve the anxiety” that they said had arisen in the wake of the announcement by Mckeeva Bush just ten days ago about the tax.
On Wednesday, 25 July, Bush made the announcement that he had been forced to introduce the payroll fee because of pressure from the FCO. He described the tax as “a community enhancement fee”, which he said was needed to meet the UK's demands for a budget with a $76 million surplus. At first, Bush had targeted all work-permit holders earning $20,000 but on Wednesday it was revealed the threshold would be raised to $36,000 and the money would be collected by the immigration department.
The proposal was greeted with opposition from almost every corner of the community. Every single business body, from the Chamber’s Council of Associations to the law society, as well as the Facebook community pointed out the potential dangers the introduction of any kind of tax on earnings posed.
The business group said that during a meeting on Friday with Bush “and after many hours of careful review and input from most sectors of the business community” they were able to come up with alternatives that the premier had found acceptable, they said.
“We support the premier and his efforts to meet the parameters set for the budget," stated the group, which is led by Woody Foster, the owner of Cayman’s largest supermarket chain and wholesale distributor. “We recognize that in order to reach this point, it will require all areas of the economy to participate and contribute to the revenue enhancements and they should not be borne by any single sector."
The statement said the proposed Community Enhancement Fee had created polarity and division in the community that had caused great concern. However, on the social media circuit itwas apparent that the proposal had united Caymanians and expatriates more than ever before, as illustrated by the lightning speed with which the Facebook page Caymanians and Expats United Against Tax formed.
There were very few Caymanians who spoke out in support of the proposed discriminatory tax, as most recognized that it would detrimental to the wider economy and the impact would not be limited to the 5,000 or so work permit holders earning over $36,000 per annum that Bush had planned to target.
“We are a welcoming diverse society that recognizes the contributions of Caymanians and expatriates alike, and we are confident that the new revenue measures will provide a way to share equitably the responsibility of providing revenue to the Government," the business group said. “Thepremier has committed to making a public statement on Monday night at the Mary Miller Hall agreeing to suggestions – proposed by us and others – and removing the Community Enhancement Fee from further consideration. At this time, he will provide details on the new revenue measures that government is considering.”
It is not clear now where this move will leave Bush with regards to the timeline for the budget, which must be presented, examined by Finance Committee and passed into law before the 31 August. He revealed last Wednesday evening at a meeting in West Bay that his government’s latest proposed budget containing the new direct tax had gone to the UK for approval and he had planned to deliver his budget address in the LA this coming Thursday 9 August.
Check back to CNS for more on this latest development.
See both the statement from local business people and Friday’s statement from the Council of Associations below.
Category: Politics
No requirement to curb spending or introduce measures to manage expenditures going forward?! Madness or at least a very egregious oversight
In the end the poor are the ones that will pay the bill.
It appears this country is ruled by corporations and not the caymanian people.
Wrong! the country is being rules by those who have gotten rich by stealing from the public purse. Instead of working for it they just voted for it. The CS is not a corporation and yes it is filled with Caymanians and no one else.But you at least got the first sentence right.
Well, at least we now know who some of Macs Puppeteers are.
Members of the Council of Associations
· Cayman Islands Chamber of Commerce
· Cayman Islands Bankers Association
· Cayman Islands Compliance Association
· Cayman Islands Fund Administrators Association
· Cayman Islands Tourism Association
· Cayman Contractors Association
· Cayman Finance
· Cayman Islands Insurance Association
· Cayman Islands Real Estate Brokers Association
· Insurance Managers Association of Cayman
Council of Associations (COA). Hmmm. We could have used you a few years ago when 'that' government proudly introduced a budget to build schools and an admin building we could not afford. Is this a case of the fox guarding the hen-house? Are you looking to squeeze more blood from the rock that is called the poor Caymanian? Show me how much you care by releasing the following info per council member.
What is the ratio of Expat to Caymanian in your employment?
What is the ration of Expat to Caymanian (E2C) in upper and middle management?
What apprentice programs do you have in place to up-train poor Caymanians?
How many scholarships have you funded to educate poor Caymanians in the last five years (give us a yearly breakdown)?
You all (COA) want to have a say in the government's budget show us what you have done for us lately.
Mr. Premier, keep the Expat Tax on the table for the time being. I don't necessarily agree with it but you have succeeded in bringing everyone to the table to have an input in this important discussion. Also, you have to willing to kill a lot of these pet projects like the Turtle Farm and Pedro St. James. Cut loose PWD. Set them up as a private company to do the road works. Lastly, introduce a lottery and casinos to the mix. Ban Caymanians for gambling at the latter. You will see every major hotel in Cayman be torn down and rebuilt creating thousands of jobs and earning lots of revenues from importation of construction goods and gaming licenses. Also, stop funding the churches, God will provide. Get rid of that Seaman's fund. We should not be rewarding them for doing what was expected of them. Build a monument for the seamen and stick in Hero's Square. Ooh? You did that already. No more concessions to big business. If they can't fund themselves then cut them loose and look out for the next investor.
There are many things you can do Mr. Premier, to make a difference. Caymanians are looking for leadership. Call the opposition (and Ezzard) to the table and jointly make the necessary deep cuts so that no party is disadvantaged at the next election.
Lastly, Mr. Premier, do not sell off any our money making assets. Especially, the Water Authority. I would rather the goverment produce water at cost instead of putting control in the hands of a greedy businessman
To the Civil Service, the party is over. Time for your to pay for your health care just like everyone else. Government should restrict CINICO to the indigent and those unable to get insurance. CS should be able to choose their own healthcare provider.
To the politicians, time for a major reduction in pay. I would be willing to give you a performance bonus if there is a surplus at the end of the financial year. That would give the electorate and the country value for money. Scrap the additional members of parliment to come into force this year. We dont need them. We can't afford them.
Can someone tell me what is the current national debt? How much money is each Caymanian (not Expat) is on the hook for? What was the National Debt before before the UDP took office.
Some good points but also some very silly comments. But simple question have you or any of the rest that rail out at these company representatives or associations done anything for your country lately? For example surely we can rely on the fact that you do not go off island and do your shopping elsewhere right? I know I can hold up my hand and say for at least the last 10 years I have bought everything I have purchased from local businesses. And I am sure you have taken your family vacations in your country to put the money back in to keep Caymanians employed right? I know I can hold up my hand and say I’ve done that for at least the last 10 years. And if you have built anything you can hold up your hand and said only Caymanians have done the work and the materials were purchased locally right? I know my house I am just finishing I can say that. And I know you can hold upyour hand and say you are actively mentoring young Caymanians and provide through what vehicles you are doing that right? I know I can say I am a participant in the big brother and sister organization and that every Passport2Success program I have mentored at least two participants and through the schools at least two to three year 12 students and this will continue as well as reaching out through every other vehicle that calls on me to do so but then again I am only a paper Caymanian of 32 years and did not get a status grant when they were being handed out in one big block but have worked and put blood, sweat and tears in to this country for over 32 years and it is by golly my country too and I take exception to what you say about these people who have stepped forth to provide solutions by attacking them with your armchair dividing tactics. If you are not a solution to the problem you are a part of the problem. I have never posted before but by golly I am now because I keep reading posts by people like you who can do nothing but attack no matter what is presented.
The “schools we could not afford” argument is wearing thin, especially in light of the fact that the UDP cancelled the construction contract, gave the work to their supporters, and more than doubled the cost. We could afford the original project. What we can’t afford is corruption at every level and anywhere money is changing hands.
Wearing thin? Thin was 2 years ago. What happened to the 25 million surplus he had a year or two back? To me that ended the School argument right there.
Hold on didn't the Miller Shaw report say FUNDAMENTALLY the schools are not the problem did they not sight another issue as being THE CORE ISSUE and not the schools?? Huuummm what was that again???
Enough of this idiot tearing apart the hard work of generations. Let London come in and get the house in order for 2 years and then let Cayman take itself forward and prosper.
When is the Governor and the FCO going to dissolve this Legislative Assembly and call for a new election? It would be the first time something like this ever happened, but if the Caymanian people are to continue in our own country, The Big Mac and his small fries must go. There sre some very intelligent men in the UDP government, but they all seem to be afraid to stand up to their illiterate, money-grabbing leader. I have to travel frequently and whenever I do, someone overseas, when they hear my Caymanian accent and ask where I am from, instead of using my favorite expression, :"I'm from the most beautiful place in the world, The beautiful by nature, Cayman Islands". I just say I'm from the West Indies. McKeeva Bush has screwed around with the Caymanian economy and disparaged our mother country and is still doing it. I guess someone explained to him that Cayman cann not sustain itself without the revenue from the ex-patriates' work permits, so he is going to make the more gullible supporters of the UDP believe that he is being his usual benevolent self (not) and not charging the tax. This ought to show the FCO that the Cayman Islanders cannot survive with this un-educated, uncouth boob at our helm, and remove him from all this power.
I new that it was not for real. The island just needed some excitement and unity. Now expats feels like one of us because we stood by them. We showed love and they will in return love us. If we are going to introduce any form of tax it should be for everybody. What about a 2% tax for everybody? I think the government will earn more. Also, the garbage fees should be reinstated. Anybody that do not pay their garbage fees will not get a work permit. Treat it like the Health Insurance. This way all work permit applications must be submitted with a copy of your last garbage fee receipt. Everybody will be included in this because everybody has a Domestic Helper and other workers in some form. Can't loose on that one BOBO.
12:47, please do not allow anyone to have what you are drinking, even if it is water. Now they feels like one of us? areyou gone crazy? How can an expat feel like one of us.? " We showed them love and they in return will love us?". I do hope you are not a born Caymanian UNCLE TOM because I know we are in for trouble if some are still around.
I surely do not look at it the way you do, because for the first time I must say I thought UDP was smart, They need to stop the running around and for the first time I am saying this. They need to take advice from Ezzard Miller, because he seems as the only person on the Island right now who says what he mean and mean what he says.. Now I must say, I supported him last election, and I surely will support him this one. Just for standing up for what he believe in.
I agreed with your post until you got to the garbage fee part. The reason household garbage fees were stopped was probably because they weren't being collected from a lot of people and it cost more to chase people who didn't pay than the money collected from them. Not everyone has a helper either.
Told you it was a bait and switch scheme, designed to stop Caymanians from complaining about the real measures they were hoping to introduce all along and stop the opposition to CHEC and DART.
With Dart not paying the infrastructuer and planning fees how will future infrastructure be paid?
Revenue is not the problem, it's all of the unchecked consumption. The only acceptible proposal involves spending restraints, obligatory transparancy, and new accountability measures to be instituted throughout CIG.
Great, but we still want to see a full and complete Balance Sheet, with footnotes and appendixes. This should be a professionally prepared public document filed regularly. We are not going to go quiet on this – Bush and others have shown they cannot be trusted with our finances. The finances need to be tightly supervised going forward.
Transparency Mr. Bush, not Translucency!
Do you know the difference?
On the subject of expats- I submit and reccomend that he get rid of all the pork-fat and overpaid expat civil servants, get rid of CINICO, run Cayman Airways as a business, cut goverment spending by 35%, get rid of all the boards and councils, sell the sewerage and reintroduce a $150 fee on ALL adults over the age of 24 and under the age of 60- yes this will include male and female and Caymanians and expats. Collect this on or before January 31 and I am sure this will raise a significant amount of revenue.
Does anyone else find it interesting that Mac protects expats in government? No rollover. No tax. Indeed, not having any rights, it could be argued that they get more protection than Caymanians. Why is this?
Not really interesting.
Just to name one Government job position filled by expats —- teachers.
There are not enough Caymanian teachers so the positions must be filled by expats.
These people are a necessity. The Government has enogh trouble keeping teachers to stay on the island as it is so they can hardly afford to cut their salaries and have them walk away during the school year – which apparently happens.
Don't be silly.
It was Premier Mac who introduced this tax in the first place.
You can check the following with the Cayman Census statistics yourself on the Internet:
In 1970 there were 10,000 people living in the Cayman Islands, only 1,500 of them had jobs.
The remainder of them were children, retired or mothers bringing up their children alone while the menfolk worked overseas and sent money home. Those you did live here had a very tough life indeed.
The islands were dying.
At the latest count there were 54,000 people living here, about 21,000 from other countries and 33,000 Caymanians. Most of them have jobs. People no longer have to move away to send money home to their families.
Why do think this happened? Because of the promise of no direct taxation.
It was confusing until I saw that he planned for the tax to be collected by immigration as a work permit fee. Since Govt. doesn't apply work permits to itself there was no way to collect it from Govt. employees. … See, they had their plan all worked out. Its just we didn't understand how it would work. :-}
I am glad that common sense has re-appeared but as a Caymanian trying to build a future for myself and my family in this country I believe that a very clear example needs to be made so that no politician will ever think of acting in such a high handed manner on such an important issue – ever.
Withdrawing this tax proposal is good but not enough. A clear message needs to be sent to the local community and the international community that nothing like this will ever happen again. Confidence needs to be restored. Politicians need to understand that there are consequences to acting without carefully thinking things through. If the person responsible is not willing to do the honourable thing then others need to assist in seeing that it is done.
I am glad that he finally open his eyes & his ears because this would seal his deal come MAY of next year, they are many ways to create $$ you just have to come together with ppm & the community and deal with it, THIS IS SOMETHING THAT WOULD BENEFIT US ALL! LET'S STOP THE FIGHTING & WORK IN HARMONY, EXPSATS, CAYMANIANS ETC.
A CAYMANIAN.
Well done! Can't we all take a minute in the midst of this heated debate to give credit to the prominent Caymanian families that joined together to at least propose alternatives to the income tax that the Premier is planning on implementing? They got his attention and at least the Premier has agreed to put a hold on his harmful plan. These Caymanian business leaders have accomplished a lot this weekend and deserve some credit.
This ought to be interesting.
Mac sure didn’t seem like he would back down or listen to reason last Wednesday night, so why now?
Also, remember he sent his budget onto the UK for approval…
Maybe he just wanted to have a quiet weekend.
Time will tell.
LMAO
Yep. Time did tell.
What a joke.
I have been wondering how long it would take for the merchant class to step into the fray – thank goodness they finally have.
Cayman was governed best by the merchant classes and the rot set in when the salary of an MLA was raised to a living wage. This allowed every failed businessman and ignoramus with a fast tongue to run for election.
Since their basic political premise was to promise myriad financial benefits to the electors with no accounting for how those promises were going to be paid for, they were and still are elected over & over.
They have now reached the point that Mrs. Thatcher promised must happen to all socialistic programmes – they have run out of other people's money.
I beg Woody Foster and his fellow merchants to offer themselves for public service at the next election. It will not be an easy road to election because so many of the electors are now accustomed to the politics of ignorance and division, but for Cayman to survive and prosper once again, the merchant and professional classes need to wrest the reins of Government out of the hands of the current breed of vainglorious incompetents who have brought the Cayman Islands to the brink of financial disaster.
ous living
I totally agree with you that the Cayman Islands was much better off when it was run by persons such as the late Dr Roy Edison McTaggart and the late Mr Edgar Ducan Merren. and later by persons sucha s the late Capt Charles Leonard Kitkconnell.
Those persons were business persons and ran the Government as it was a business and I am certain did not squander Government funds just to appease the voting public but put the interests of the country as a whole ahead of that ahead of that individual wants of specfic constituents.
I
You should try working for $1,600 pm
Isn't it strange that mac would call a meeting at the same time another meeting is planned?
He is playing political games. Sounds like a child playing games who takes home the ball when he is not winning.
No taxes, No jobs cuts in the CS, No reduction in spending. Please Caymanians and expats let the Premier have some sensible alternatives! The Council alternatives are not practical and as a Caymanian I refuse and reject their solutions because they are all structured towards business and the poor getting poorer so NO! Gambling that is another brain job. If it was the big solution why is the USA in debt? Bahamas makes millions on gambling and tourists and they are struggling too like Cayman. Selling off Government assets to pay off bills bad idea no assets and short term relief from debt, in simple terms this is like me selling my house to payoff my credit cards and car then what? Increase the number of permits and reduce permit fees so dumb, now I know just what the Chamber thinks about Caymanians there are 8,000 Caymanians without jobs and getting assistance from social services now we must create more jobs for expats and reduce their permit fees I can only shake my head on this one. Cayman must be the laughing stock of the entire region we are so greedy that we look foolish with it. My only wish is that the UK come and solve this stupidity and do exactly what was done in TCI and put the matter to bed.
anon 1235 dont they have the same problems as we do?
Dont they also have an oversized Government sector?
And we are looking to them for solutions?
Guys I thank the UK for stopping our budget because they know that they themselves are having issues and so if we are going down the same road we also will have them. Moreover they are a larger country and are open to other means of solving their problems we have appearently limited choices.
The post above has some excellent points but one I dont totally agree with is the possibility of a casino or lottery.
By the way the chambers solution of more work permit but lower fees – Does anyone know any good Cuban boat builders, Caymanians may need for leaving this rock.
Strange – NO.
His Super-Ego constantly screams – LOOK AT ME – LOOK AT ME!
I am amazed that our leaders have not learned over the years that coming together and trying to solve our problems is the better alternative, regardless of who get the credit.
I am one of those who wants our governments to be successful regardless of which party is in power. When our government is successful, our country is successful.
The problems with our leaders are their egomaniac ways and a false sense of importance. Therefore, they have destroyed our country, simply because they want it to be all about them.
However, the people have reminded them that its not about you, its all about who put you there.
Hopefully this will be a wake up call to our premier and his cabinet, that instead of rolling out of bed in the morning, and blurt out the first thing that comes to mind, to spend time thinking, and discussing with all stakeholders involve (PPM, Independent, Outside stake holders etc).
Again, Mr. premier, the people want you and the government to succeed, but have a great disdain for a dictatorship approach to running our country.
God Bless You the people and these Our Beautiful CaYMAN iSLANDS.
Good: but what alternatives – fee increases, no cs or expenditure cuts? No spending control measures?
Otherwise we are just delaying the inevitable.
UDP lack of consultation is unforgivable. The damage has been done. Vote them OUT, including mike Adam, Elliot, rolston, and cg who lined up and defended Mckeevas effry
Did you mean Elliot, or did you actually mean idiot? Just wondering
Dear Premier
Although the expat payroll tax is on hold as the proposed alternative to balance the budget, seeing the amount of opposition you received and international attention that is damaging to this financial industry, what will you do to regain confidence from so many expats that have made up their minds to not come back to the Cayman Islands?
Second question: What are these new alternatives? Was introducing this expat payroll tax adeliberate politicial stunt and a prelude for other things like a VAT tax? If so, why would you create this controversy in the Cayman Islands – expat community?
Dear Mr. Premier, I suggest you step down, because your manner of representing us, does not set a good example for our youth to follow. I suggest you step down and at least give the premiership to Rolston Anglin or some other UDP member that are not loose in speech. The way you handle the budget crisis, somebody else would have been able to do a better job. On the onset, somebody else would have looked for alternatives and presented them to the business community rather than being so apt to choose a direct tax. Many of your party supporters, have their heads hanging low. Your premier leadership in this matter was very indifferent to the community's reactions, although you had the intentions of saving Caymanian jobs in the civil service.
I look forward to seeing the new alternatives and hope it is conducive to both Caymanians and expats alike. It is time to remove you from power in 2013 and it is time for Caymanians to not put Alden and the same faces in power. It is time people vote for independents who can think for themselves, listen, and make sound decisions for the country – leaders who will put their districts first and not a party, and leaders who can stand up to the shrewd and cunning ways of the Foreign and Commonwealth Office and their appointed servants over these islands.
Is my prayer,
Libertarian
I hope this is best for the islands. And I still support our Premier!
Maybe we should introduce a Male Enhancement Fee instead and tax men. I get emails suggesting it would help me all the time.
Some just cannot be enhanced no matter what!::))
That would be a "long" and "hard" way of collecting tax.
I still think that all of this was Bush playing this country to his advantage. I think this "tax" only existed in Bush's head, it was never his intention to move forward with it. I guess we'll see when he makes his statement on Monday for what the "new" plan is. Let's watch the backgrouind scene to see where he financially benefits from this new plan. The tax plan was just too simplistic and basically came out of right field…..how could it have been anything but a diversion for what is still to come??
It wasn’t really a plan. More of a scheme really…
Well done. it is great to see the younger generation of these Caymanian merchant and professional families stepping into the shoes of their elders and putting a stop to the foolishness and instilling some common sense into the politicking.
Can we now ask that you also follow your parents and put yourselves up for election in 2013?
The root cause of Cayman's financial woes is corrupt and incompetent government spending.
Increasing revenues to support and further entrench corrupt and incompetent government spending is like pouring gas onto an out of control fire.
If we do not deal with the corrupt and incompetent spending, the increased revenue will do nothing but delay the inevitable economic meltdown.
The cost side of government is the elephant in the room and it must be acknowledged and dealt with very soon or it will eat us all out of house and home.
Many good suggestions have been put forward that do not entail wholesale layoffs for government civil servants. However, some short term pain must be endured by everyone, yes everyone, if we are to avoid economic death.
McKeeva, please watch Mr. Taylor and learn how to be a gentleman and a statesman. The country needs a reasoned and sober discussion of the issuesby everyone who cares for this country. Rants and personal attacks have no place in a civilized democracy.
Obviously the initial reaction from Expats will be happiness, but I'm anxious to hear what these alternative revenue measures are. Even if it's a tax on the consumption side, it's better than a payroll tax, but still, my faith in the government to do what's best for Cayman is very limited at this point.
Along those lines, you can't help but wonder if this was all a ploy by the Premier, a scare tactic to make the real goal go down easier with the public. I don't know if the Permier has that kind of political shrewdness to him, but you have to wonder if some other alternative was the real goal all along. If it was, it's a shame that so much collateral damage had to come about to make that happen to get to that point.
In addition to worrying about the budget, I hope the Premier is smart enough to realise that a great deal of damage has been done to the culture of Cayman merely by proposing this Expat tax, and that the government actively tries to heal the very real rift that has now developed on both sides between Caymanians and Expats.
The intial rection? The damage is done. Mac has announced to the world that the Caymanian government is not afraid to introduce direct taxation. Translated, Cayman will never return to its former glory. Trust me when I tell you, everyone loses. The difference is the expat has many jurisdictions to choose from. Indeed, most that come to these islands are merely making pit stops on their global treck before they return to their home lands. So is the life of an expat – hence the name.
What would this mean about how much/much more he will take from the Civil Servants?
You have already frightened investors, new and old, away by showing yourself to be completely incompetent by evening mentioning the word tax. Now even more people all over the world know that this premier, who insults us by calling himself honorable, is under investigation for corruption.
You have guaranteed a landslide victory for any opposition to you in the next election, it is imperative that you and your disgusting party members are removed and then investigated thoroughly XXXX.
You are a disgrace to your people who are ashamed of you and are embarrased by you, your capitulation to hearing other "ideas" is not in any way a notion that you are a humble or decent man. You are a bully and a coward and the only reason you are pandering to these "ideas' is to continue to push your illegal tax with less, as you like to call it, harassment.
You thought we were all scared of you and are probably reeling from the backlash of 90% of this island community letting you know that you are neither wanted nor liked. I have never voted as I have never known anyone worth voting for but I will do so in the next election. It is not even a case of the lesser of two evils anymore because your action and behaviour have truly made me ill to the point of wanting to throw up.
Spare us all any more of this embarrassment and resign immediately, at least for the sake of my stomach.
My fellow Caymanians please read the statement made by the Council of Associations posted by the Cayman Islands Chamber of Commerce. For one it makes for some interesting reading. Some of the main points are:
1. Do not impose direct taxation
2. Orchestrate stubstantial privatization and other asset sales
3. Make significant reductions in operation expenses
Their suggestions even gets better
Increase the number of work permits, reduce work permit fees, and make the gust worker program more flexible
Attract private capital to solve various infrastructure challenges to develop new enterprise.
Yours for a better Cayman
P.s. it is now time to sing "Nearer my God to thee" or till the storm passes by because this ship is sinking fast.
Anon 1003 who is on the choir singing the "sinking song".
1 was because it hurts their interest most of all.
2 if we carried out would mean that the country would be weakened and when we need those assets in the future would no longer own them. Example if you sell the water company where is Government going to get revenue from?
3 has been going on now for the past few years, the problem is that they cut peter to feed paul. They cut staff and budget from one section then add it to another.
Not one of these suggestions say get another revenue source and until it does means little more than what we have been hearing in the past and they all have failed.
more working expats and less working Caymaians