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"The proposed Community Enhancement Fee will only be withdrawn if alternative revenue measures that do not affect the ordinary Caymanian can be implemented," Bush said, on Saturday afternoon, a few hours after the group of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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Category: Politics
The Premier needs a little Reggae in his soul. Maybe he was dancing and celebrating Jamaica Independence to the tunes of Bob Marley " We gonna chase those bald heads out of town / Get up, Stand up, Stand up for your right / And Emancipate yourself from mental slavery" .
"…when he will be discussing the issues…"
This is a lie. The Premier will use the platform to rant.
He is incapable of sitting down and "discussing the issues" in a civilized manner.
We all know that. He's still a hero to the CS voting block (no cuts hence the new tax) so he is giving them what they want. Just wish the rest of Cayman had some one in government to look out for them.
Can we please have details on this secret deal of alternate proposals which mayor may not be agreed? Did it include cs cuts, curbs to expenditure or just sweeteners that will be passed on to consumers?
They did a press release- why not outline the alternate proposals also??
Okay Okay!! Enough is enough.. Can someone please take the monopoly board game away from this man?!? I think he thinks that this game is actually real and he has infinity throws.
What an idiot. I can not for the life of me understand how his minions are supporting him with out even a second thought. I can only thik that he has something over all of them and thats why they can not speak out.. If not, they should pay the government back for funding the degrees they they obviously dont use. Talk about Educated idiots
I can tell you, while I am not part of the party politics stupidity that these islands are tied up into, I would rather put some of the PPM morons in that ANY…and I mean ANY UDP member into. While tthe ppm spent money galour, atleast they somewhat meant well,and we can see what the money went to. This man is killing the country, and I bet, when the $hit hits the fan, he will run off to his house in cost rica like the coward he is.
What a hot mess… Im so ashamed to say this man is the premier for cayman.. such a disgrace.
I will say this Mackeeva Bush… One day you will have to answer for your dishonesty, for your lack of leadership and your unfairness to people. You call yourself a christian… We can not judge you but apparently you feel that going to church every Sunday will wipe your sins from the past week away with God… You are in for a RUDE awakening my friend… Watch and see… Time longer than rope… and boy that rope you have is really long.
The biggest 'Community Enhancement' we could have right now would be for this fool to step down
Mark my words, he is holding out for gambling to be legalized in Cayman.
Well Mr. Dan Scott, this is what you get for putting your financial support behind McKeeva. So embarassing, not to say the least! What a Mess! you helped put him there, now sort him out!
Mr Scott like many others realizes their mistake, however he too needs to employ more young promising Caymanians and not the selective few with the well known Caymanian surnames as he was given a chance without hesitation. We need to help all Caymanians and expats a like in the work force.
Uneducated but constantly re-elected for giving out a few washing machines to people and saying he hates expats. Country is a joke.
The current UDP cabinet is a joke.
They need to slash and burn some of those and come again.
The country is not a joke. It's only a select few people and I would appreciate it if you would stop generalizing.There are many Caymanians that are educated. It's just sad that most of them do not have any say in the election of that district.
Not a country
To the rest of the civilized world……..Yep! still a joke. Its more than just sad that so many of the storied educated Caymanians couldn't make it to vote and have their say. Remember, In Cayman culture not voteing is a OTAY for the Bush way. But we knew that.
The team that convinced him to abandon the tax idea took it to the media (why?) which in turn peeved off Bush and his fragile ego. They should have let him announce it at the meeting tonight himself, making him feel like it was his decision in the end, based on listening to the people. They underestimated his ego and narcissim, and quite frankly, jumped the gun. Damage is done anyway. The seed of doubthas already been implanted in foreign investors, foreign press and expats, alike. The trust is gone. I would never buy property here now or commit long term.
I think you will find that the reason the private individuals released the news is because His Eternal Magnificence was leaving for the big party in Jamaica this past weekend and couldn't be bothered. Guess who paid for that little trip…….
Some people don't seem to realize or remember that Foreign Investors brought Cayman out of the doldrums to a high ranking Financial Center and that the Investors wont remain when a head-strong Government changes their stand on issues that had drawn them here in the first place.
The effect of the tax on individuals is small compared to the reaction of Foreigh Investors.
Proposals such as the Expat Tax are quickly published around the world and causes Investors to lose confidence in the trustworthiness and stability of the country.
It is foolish to think that Investors wont find another country ready to invite them in.
Our leaders should face the facts and realize that our country will be devastated if the Investors leave, shut down their operations here and cause widespread unemployment, and a total collapse of the islands economy.
Financial distress has caused people from the other side of the world to come here to seek a living and can easily cause even Professional Caymanians to leave their own country and to compete for employment in other countries.
This is a very serious matter that will adversely and permanently affect Caymanians even more that Foreigners.
They say that a bird in the hand is worth two in the bush but in this case we may find ourselves in a birdless bush. We therefore need to do all possible to encourage the business that has brought prosperity to our country to remain with us.
I thought we found ourselves with a Bird-Brained Bush!!!
Then again, that's an insult to most birds.
Except perhaps the Dodo, and its current status is curiously about the same place we want Mac and his cronies and their half baked ideas!!
Just ridiculous and unbelievable, what a joke.
Sorry Woody, when you got this response from Mac in writing you must have all assumed that he actually READ and UNDERSTOOD what you had proposed. That's your bad, you should have known better than that; that would suggest he was intelligent and thinking and we all know better than that now, don't we?
You know what I think? I think when Woody et al made their announcement over the weekend it pi$$ed on McKeeva bonfire because he wanted to be the one to make the announcement and seem like he was Cayman's saviour, when in reality, he is the exact opposite.
So if the Premier is having a meeting at the Mary Miller Hall tonight – please can we have no West Bayers cluttering up our space? Their rowdy herd already had their turn last Wednesday night…
I think we better call in the police. There is an ill-temper in West Bay that suggests we would not get the calm and measured discussion we are looking for should any of Mac's blind and idiotic UDP cronies turn up.
does anyone else wonder Channel 27 seems to be quashing the tape of our hounorable leader's performance in west bay the other night. They were there, but I've not seen clips of his strongman antics. just sayin…..
Maybe he went to Jamaica to sun his buns
OMG – I won't be able to get that disgusting image out of my head for years.
Mind bleach please, right now.
In what world are you living in? Honestly, are you serious? I can assure you that your figure of 99% of Caymanians being in favor of this tax is ludicrous! Perhaps you are referring to 99% of Mac's posse are in favour – and why wouldn't they be?! This is an easy way out for all of them…
Don't be so ignorant as to think that the rest of us don't see what this proposal is really about. I guarantee (100%) it is not to establish a recovered Cayman Islands.
"99 percent of Caymanians"?? The only people I heard supporting the tax were Mario Rankin, Kerry Lawrence, Teresa Lewis-Pitcairn, and Tony Powell. There were also a lot of people calling in to talk shows to support it.
Just as well, there are a lot of Caymanians against it like Don Seymour, Tony Travers, Woody Foster, Brigitte Kirkconnell, Roy McTaggart, Dan Scott, Bing Thopson, Gene Thompson, A. L. Thompson, etc, and others that called in to denounce it.
I dont know where you learnt what 99 percent is, but they taught you WRONG!
It is a real pity the McKeeva didn't think about the "ordinary Caymanians" when he was indiscriminately issuing Caymanian Status grants to over 3,000 people in 2003.
Now this is a desparate move to try to get the "ordinary Caymanian" people back on his side before the 2013 elections.
Do not buy this hogwash Caymanians. The man cannot be trusted. He is only trying to get re-elected in 2013 and then he will implement Income Tax on Caymanians too.
"Ordinary Caymanians" as he now calls us…….you have been warned. McKeeva and his puppets must go now !!!
Well, hundreds of those status grant recipients are educated professionals who are now part of the voter pool and can hold this and future governments to account. Cayman needs more than the usual Simpleton Evangelism in May 2013. We need to collectively choose to raise the bar…better candidates would make that choice easier.
Most of them hail from a certain country who will defend and support him to the end.
I don't support him nor any of the other morons in the LA and I was born here 32 years ago and am one of these said receipients of status in 2003.
I pulled my weight, have been a part of the local community, have represented this country for 10yrs in sports, give back to the community through numerous organisations, am employed, and hold a law degree and accounting degree (working on another).
Don't put us all in the same boat please.
A Caymanian.
You should have been given status anyway and you were used by the UDP to muddy the waters and cover up the people who should never have been given irrevocable status. There are many people in your situation.
Actually, no, I have many friends from that certain country and they assure me they think he has lost the plot and he will not get their vote next time. Not everyone will sell their soul, you know, there are some who know that anything that affects the country badly will affect them badly too, and will do the right thing.
Mon, 08/06/2012 – 12:40 I agree that many are educated professionals but likewise hundreds are uneducated and unskilled and have become a real financial liability to this country, Many are being supported by the government through the social services department and thy certainly have not added intelligence to the voter pool. Your comment, "Cayman needs more than the usual Simpleton Evangelism .." is insulting to me as a Caymanian and to others who have read your post. It is unfortunately your type of condescending and insulting attutide that is additing to the division in this country.
not only re-elected but building a militia to surround the fort when the british come for him.
Everyone seem to be very tired of this craziness.
being around crazy, mentally ill and very sick people is very tiring. and emotionally draining. anyone feel any of that? you're normal.
One thing is certain, the damage to Cayman's reputation is spreading.
This article, describing the tax plan and a cancelled real estate deal because of it, ran in many U.S. papers today.
PLANNED EXPAT FEE IS TALK OF THE CAYMAN TAX HAVEN
McKeeva's credibility is blown. There is now no way out of this for him. He must resign, and if he does not his party must remove him, or else they will share the consequences with him come election time.
CNS
Its time you start reporting the facts and cease from prefabrication
of the PPM's view on all things against the government.
You are outright lying that there has been no support for the 10% tax
As a matter of fact the 10% tax has gained five times more support than the OMOV,
99% of Caymanians is in agreement with the 10% payroll fee.
I think perhaps online polls which show that the majority of Caymanians are against the proposed tax might be a bit of a give away; also, from a personal perspective, EVERY Caymanian I have asked about this proposed tax DOES NOT agree with it. I am fairly confident when I say I know, personally, about a thousand Caymanians (I am Caymanian by the way).
If you seriously believe 99% of Caymanians are in support of this payroll fee, I challenge you to show where got this percentage from. You accuse CNS of not reporting facts, yet perhaps you yourself is unable to show proof that 99% of Caymanians are in support of this payroll fee.
Do I hear crickets? I think yes, because your claim is total poppycock.
Idiot.
Damn that koolaid u drinkin strong buddy.
Ellio, please stop writing into CNS with your fabricated estimates of how many Caymanians think this or that! With your variations of "I know the majority of people support the UDP" bullcrap! NO THEY DON'T!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Have you not been reading ALL of the posts and Facebook pages!? The majority is AGAINST it dingdong!
You coming on here and posting what you WANT to happen, doesn't make it so.
I am more surprised by how angry I get at idiots writing foolishness than I am at the foolishness they write!! Ugh!
To the writer of the 11.07 comment, you are misled. Most Caymanians, especially educated ones are not in favour of this taxation. In fact, 90% of the fellow Caymanians which I have spoken with are against this tax. Our Premier has acted irresponsibly throughout this whole issue and has caused damage to Cayman's reputation once again. Those Caymanians who are for this tax need to realise that every form of taxation which has started by targeting a particular group, has eventually spread. It would only be a matter of time before all residents of Cayman are taxed (including Caymanians) if this is implemented which would undoubtedly be disastrous to our economy and society.
And the basis for your claim is…..? From recollection over 5,000 Caymanians voted for OMOV. 5 times that number would exceed the entire population of adult Caymanians. Explain.
you is funny. do you know what 99% means?
Dear, Insistant upon the Facts: 99% of your statistics are BS. A 100% Caymanian voter.
You seem to be living on the same planet as the honorable Premier, where exactly did you get your 99% statistics from? “Note that you and your 8 friends does not constitute 99%” unless you have the same math skills as the premier.
I bet you must have fabricated the numbers, just as how the premier fabricated his last 3 budgets with a surplus at the end along with his supposedly clean hands in the ongoing police investigations
You know in a way, I kind of like that the Premier brought up a direct tax issue on expats. The response that we received from the expat community was positive and just shows their interest in our political affairs. Before it seem they wanted little to do with Caymanian affairs. This issue shows to us a possible huge response if the Premier was to bring up a tax that included Caymanians. The response would have caused a disturbance that would have been felt overseas. Too bad this expat tax is a mere exercise with political motives. Caymanians being used as gunea pigs as usual.
It has also brought together a group of like minded intelligent Caymanians who may, after this 'episode' step up to the plate and run for office.
I sincerely hope so, I was impressed with their suggestions and conduct throughout and wish them all well in the future.
Cuz this time around it affects their (expats) pockets directly. If it was soley Caymanians being taxed they'd all be mum on the issue. I'm not for this tax as it will only do more harm than good but I'm calling it the wayI see it.
Don't be rediculous. For one thing, it would never have been proposed that only Caymanians should be taxed. Unlike some of the locals who have commented on previous articles, you will find that the expats here are thankful and would never expect to work here tax free whilst Caymanians were taxed. Equality should be first and foremost on the government's minds.
The reason they only speak up when it affects them directly, is that they feel unwelcome here, locals make no bones about reminding them they are only guests who have no say and should feel lucky to be working here, their work permit application asks if they are part of any group that protest against government either in their original homelands or elsewhere or if they have ever been involved in any insurgence or subversive activities against governments in their homelands,so indirectly they are being given a subliminal message or warning not to get involved in local affairs in Cayman. Further, they have no representation here or get any social benefits here that locals do, and on top of that are told they only have a certain number of years after which they are rolled over and only very few will ever qualify for residency, especially those with big pockets ad lots of credentials or those who can buy their status. So the vast majority of expats learn to keep their heads down, not get involved, not piss off any locals, not get caught up in the local affairs or politics, etc. You see what happens when they do – look at the cuss-cuss they got at West Bay meeting last week when people couldn't even voice their opinions without Mac's zombies shouting them down. So who can blame them. I don't. However, they have aright to speak up if it affects the salaries and benefits they were promised by their employers before they packed up their life and moved here. Damn highway robbery, to cut people's pensions and pay mid-stream their employment contracts. No Bobo, not today, tomorrow, or any other day. Before that, we will all leave.
Their intrest is in their pckets not Cayman politics. Think!
At least this presents a greater insight and gives footing to what Mr. Bellingham is most likely having to deal with as well, substantiating his reluctance to go forward with most presented propositions.
Mc Crumble needs to be banished to an isolated Island together with his chest of wealth to sit on and realize just how equally worthless it is aligned with himself.
Does the premier sneaking off to Jamaica to party affect the 'ordinary people of cayman' financially?
If he has gone to Jamaica to party he should be removed from office for that alone at the most critical time in Cayman.
In truth, he should have been "asked" to step asside months ago for far less!
Oh, he went
he has alot of stress you know!
but since ivan hit us in 2004, i was uncertain, the tax thing is no surprise
The damage is already done. This whole escapade has highlighted how unstable Cayman now is. Companies will begin to pull out regardless of what happens with the tax.
Unfortunately, but expectedly, companies have already started pulling out. We are seeing this at my office…
When we get rid of the UDP things will normalize. Same depressing feeling we had back in 2001 – 2005. McKeeva had always been a disgrace of a leader/politician. Let’s hope he and his mob aren’t returned to politics by short-sighted and greedy voters.
I'm afraid you're right