Archive for August 6th, 2012
Uncertainty prevails over tax
(CNS): The issue of direct taxation was up in the air Monday, with people from the business community believing they had persuaded the premier to move away from the controversial and damaging move to introduce direct taxation to Cayman while McKeeva Bush denied that the tax was off the table yet. The plan to impose a 10% payroll tax on work-permit holders earning more than $36,000 per year was included in the 2012/13 budget proposal sent to the UK last week, on which the Cayman government now awaits the OK. However, seven business leaders claimed Saturday they had persuaded Bush to drop the idea and adopt alternative revenue raising measures — a claim denied by the premier. (Photo Dennie Warren Jr)
Bush has confirmed that he will be holding another public meeting on the issue at Mary Miller Hall this evening (Monday 6 August) at 7:30pm, when he will be discussing the issues but he said the payroll tax will not be dropped unless an alternative can be found that won’t hit the locals who can least afford it.
"The proposed Community Enhancement Fee will only be withdrawn if alternative revenue measures that do not affect the ordinary Caymanian can be implemented," Bush said, on Saturday afternoon, a few hours after the group of business representatives said that Bush had agreed to withdraw the direct tax proposal.
On Saturday evening the business group released a further statement denying that they had “jumped the gun” over the issue as they had the premier’s agreement to drop the tax in writing.
The group, comprising Woody Foster and six others, stated that they were "unable at this time to explain the discrepancy between the news reports" and the clear understanding it has in writing with the premier. In addition, they said that the statement released by the group on Saturday morning had been agreed by the premier before it was issued.
They said that Bush had committed to outline the proposals made by them and others to replace the controversial 10% payroll tax at the meeting Monday evening.
The six men and one woman said they had issued the public statement in order to “relieve the anxiety” that had arisen in the wake of the tax announcement by Bush on 25 July, which has created massive opposition across the entire Cayman business community.
Bush had 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 1 August it was revealed the threshold would be raised to $36,000 and the money would be collected by the immigration department.
Although the business leaders said the proposal had created polarity and division in the community that had caused great concern, in the social media circuit it was 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.
Very few Caymanians have spoken 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.
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Offshore premiers go to battle
(CNS): The Cayman premier has not confined his attacks to local critics but has also hit out at a fellow overseas territories premier. The Royal Gazette reports that McKeeva Bush has written to Bermuda Premier Paula Cox describing her recent comments about him as “antagonistic”. Cox said Bush had been making disparaging remarks about rival jurisdictions to cover up problems in his own country. In response the Cayman premier told Cox to concentrate on what she can do to help Bermudians survive in these critical days as he said he was doing for Cayman. “As Cayman’s Premier I have never attacked, any other country, including Bermuda not even when its Premier consistently attacks me,” Bush wrote.
Earlier this year when Bush boasted that Cayman could end Bermuda’s lead in the insurance market, he went further with his criticisms of Bermuda and its immigration policies.
“In the mid-Atlantic they say they ‘may’ reduce some fees," he had said, referring to the rival financial jurisdiction. “We have reduced fees. They are still talking about their immigration policy and make long statements, but I say this boldly — while Bermuda has been the champion, be assured that we can grow. We here can do it without the malice, without the inhibitions of race, without the inhibitions of transport.”
In this letter toCox, Bush said he had every right to promote the Cayman Islands, “even if you read into it, that it is something competitive to Bermuda.”
Bush said Cayman had other competitors and he didn’t attack their leaders as he told Cox that he was busy working and asked what she was doing for Bermuda. “My advice is you should stop attacking me and use your energy to move the good islands of Bermuda forward,” he wrote.
The Royal Gazette reports that Cox has declined to comment on the latest salvo and the paper has not been able to reach Bush, who CNS understands was on a trip to Jamaica.
A local opposition politician in Bermuda, Kim Swan, told the Royal Gazette that he found the spat “disturbing” and called on the respective governors to broker talks between the two territories. However, the problem now is that, at present, Cayman’s own governor and Bushhardly appear to be on speaking terms.
“It is unfortunate that the Cayman Premier would choose an open (public) letter to the Premier of Bermuda, which makes a futile attempt to ‘mend fences’ with Bermuda,” Swan said. “I recall that it was the Cayman Premier who made derogatory comments about Bermuda in February 2012 which didn’t sit well me and others at the time.”
Swan said the world was watching as he queried the message the letter and disparaging comments achieved for either island.
Recently the Cayman premier has been hitting out at all of his critics as he faces a massive crisis in his role as minister of finance and his inability to produce a budget that will satisfy the UK without introducing a controversial form of payroll tax.
See full letter here