More proposals made as anti-tax rally delayed

(CNS): Following news over the weekend that the premier may be reviewing his plans to introduce direct taxation on foreign workers' earnings, the rally against the proposal by Independent MLA Ezzard Miller, the opposition party and the Facebook group has been postponed. Caymanians and Expats United Against Taxation and the opposition said they will all be waiting to hear what the premier says at his planned Mary Miller Hall meeting on Monday evening. The social media group has already submitted a number of alternatives to his office and is continuing to work on several more.

The founders of the Facebook group spent the weekend working on potential proposals after canvassing many of their members for ideas. Casey Goff  (pictured above) told CNS that after the unexpected announcements over the weekend the group rushed to pull together the ideas that have been examined and produce a document, which is much shorter than originally planned but which could be discussed at the Monday night meeting. 

“As a consequence of this, we have been unable to complete the list of cost savings measures which we would like to present,” said Goff, adding that the group would continue working Monday to pull more credible proposals together.

So far, the group has proposed a number of measures which they claim could raise more than $83 million. Echoing suggestions made in the past by the business community and a number of other viable options, the group's ideas add to a growing list that has been submitted by a cross-section of the community from North Side  MLA Ezzard Miller to Don Seymour, one Cayman’s most successful local business owners. (See early proposals below). 

With all eyes on the Mary Miller Hall and the goal of meeting McKeeva Bush’s invitation of a viable alternative, thoughts of protesting against the proposed payroll tax have been temporarily shelved in favour of finding solutions, the group said. The opposition and Miller said they had suspended the planned collaborative rally with the Facebook group set for Monday in Heroes Square to wait on what the premier had to say this evening.

“The postponement is as a result of developments over the weekend and the government’s apparent agreement to withdraw the payroll tax proposal and to hold a public meeting on Monday6th August to announce alternative revenue measures,” the opposition said in a short statement.  “Once details of the Government’s new plans are known, the PPM and MLA Ezzard Miller will determine whether to reschedule the planned meeting.”

It is not at all certain that Bush will drop his plan to impose a 10% tax on expatriate workers earning more than $36,000, as he says the UK wants a budget surplus of $76 million. The budget currently waiting the nod of approval from the Foreign and Commonwealth Office contains the proposed tax and suggests government can raise some $50 million through its implementation.

This is the sum that Bush now says he will need to raise in order to withdraw the tax and replace it with another sustainable revenue source. However, critics of the payroll tax have already pointed out that the proposal is very unlikely to raise the projected $50 millionfor a combination of reasons.

With only around $5,000 people earning $36k and above, many of whom are likely to be in a position to find ways of lawfully avoiding paying the tax, it is unlikely to deliver that much cash to government coffers. Others may also opt to drop their salaries marginally to fall below the threshold to avoid being caught in the new tax net which will be levied at 10% immediately.

Those earning $35,999.99 will not be taxed, while those earning $36,000 will pay $3,600 each year, which would make a drop in salary for anyone earning up to $39,000 worthwhile.

Those opposing the tax have also pointed out the flaw in the government’s position that this method of raising revenue would be sustainable, since the group of workers the government has elected to target is the most transient and the one most likely to leave.