Mac calls off tax meeting
Posted on Tue, 07/31/2012 - 07:50 in Politics
(CNS): Monday night's meeting at which the premier had planned to talk to the public about the expat income tax was call off at the last minute in the face of a peaceful protest. Citing the disquiet in the community about the issue, McKeeva Bush cancelled the meeting, suggesting the protestors were being influenced by those that “meant the country no good”. The meeting has now been moved to his own constituency in West Bay on Wednesday evening, where Bush will be hoping that he can round up enough of his own supporters to undermine the planned rally by the protest group which has emerged in a matter of days via social media.
The Facebook group Caymanians and Ex-pats United Against Taxation was created by Nick Pitman in the wake of the premier’s announcement last week that he intended to tax the earnings of work-permit holders earning more than $20,000 per year by 10%. When CNS posted the story on its website, it got a record 800 comments as shockwaves over the suggestion ricocheted across the islands.
The growth in internet use in Cayman in recent times was further illustrated when Pitman’s page had reached some 9,000 members by the weekend. With foreign and local workers coming together, this has sent a clear and unequivocal message to the premier that this form of income tax is a step too far.
The group now has more than 10,200 members, and in the face of the planned protest that could have attracted thousands the premier cancelled the Monday evening meeting at the eleventh hour. In a short statement released from his office Bush said that after consultation with his Cabinet colleagues he had decided to postpone the meeting, which was meant to inform the public about this controversial move.
“There appears to be an ill-temper abroad that suggests we would not get the calm and measured discussion that these issues require,” he said. “There is too much influence being exercised on people’s minds by those who mean the country no good. Hopefully the disquiet they have generated will lessen enough that in a couple of days we can have a proper public reception and discussion of what we have to say."
The meeting will now take place on 1 August at the Sir John A. Cumber school hall at 7:30pm on Bush’s home turf.
However, members of the social media group intend to move their planned peaceful protest to the district in an effort to dissuade the premier from introducing the tax, which would be a fundamental shift for Cayman.
Although the tax is currently only targeted at foreign workers, it is clear most people recognise that it is merely step one and that once introduced direct taxation could quickly spread to all, including Caymanians, which would not only hurt the community directly in its pocket but could undermine the entire financial services sector.
Sources tell CNS that the premier hopes to raise some $50 milllion through this tax to plug the deficit in his government’s budget. However, many believe his estimates are far wide of the mark and that there are numerous other options which could bring in more revenue without resorting to direct taxation, such as a legal lottery or taking 2 cents from the US-Cayman dollar exchange.
Although Bush has pointed the finger at the UK pressurising him to introduce direct taxation, the governor’s office has sated that the UK has not yet approved this budget. In addition, London sources also state that the FCO’s economic advisor to Cayman has asked for further reductions in operating expenses and has not demanded payroll tax or any other tax but a form of sustainable revenue.
Although Bush persistently blames the opposition for the position the country is now in, the reason why the UK still needs to approve the CIG budget is because, despite promises over the last three years to reduce borrowing and operating expenses, the premier has continued to borrow in each and every budget and increased spending on public services.
Bush had said over and over again this year that the UK will not permit the Cayman government to increase its borrowing levels. Nevertheless, he submitted a budget to them for approval in June which not only included an overdraft facility of $27 million but around $50 million more in long term borrowing as well.
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Makeewa running scared!! If u
Makeewa running scared!! If u can't tek de heat, get outta de kitchen!!
run Forest Gump run!!!!
run Forest Gump run!!!!
Come on Rolstin, Mike and
Come on Rolstin, Mike and Mark. You are better than this bully and I bet you know that its WRONG for The Cayman Islands. Break away, cut yourselves loose and reform, you will get far more respect for that than anything you can possible do by hanging on to MacKeevas coat tails. We all expected better of you guys. I cannot believe you are sticking by this foolishness. So short sighted of you. Very disappointed in you.
Charles Clifford put it right
Charles Clifford put it right last week on Rooster, he said that a Premier that has 3 police investigations hanging over his head is in no position to negotiate with the UK. He is negotiating from a very weak position. This is another reason why it is not appropriate for McKeeva to remain as Premier while he is facing 3 police investigations.
Gone back to W.B.? Ok, but as
Gone back to W.B.? Ok, but as the saying goes, "you can run but you can't hide." We gone go W.B. too!
run, run and hide and please
run, run and hide and please stay in West Bay. What we ALL need is a break from crippling prices for everything. The economy needs to be stimulated and govt. needs to cut back on spending NOW. We need to have a few dollars left out of our pay cheques to spend. I am tired of just being able to pay bills. Give us a break please. Take advice from financial experts such as Tony Travers. Stop trying to destroy these islands.
This photo says it all, no
This photo says it all, no need for words. lol
As has been said hundreds of
As has been said hundreds of times already, the ‘expat tax’ surely must have been the worst alternative available for balancing the budget and to do so without any consultation with the representatives of the Financial Industry was reckless. Even if reason prevails and it is withdrawn, the damage done to the Industry that has been responsible for the economic success of Cayman and the reasonably large economic middle class who have enjoyed an enviable standard of living, might already be irreversible. Even though the Government refuses to call it an income tax, no one can deny it is a tax on income. Though it is proposed now as a tax on ‘only’ earned income, everyone (including international tax practitioners) immediately foresees that if Government sets up the mammoth and complex infrastructure to run a department to tax one type of income, it is easy to expand - and will need to do so to justify the cost of administering. But the even more significant structural damage to the very foundation of our success is that we can no longer say ‘we have no taxes on any form of income’. Obviously the Government does not realize the significance that played in the development of our financial industry and in fighting off the many international attacks it faced – there was nothing artificial or discriminatory about our ‘tax free’ status; it was not some exemption applying to just foreign investors and foreign owned companies established here.
But the announcement does need to be withdrawn, quickly. It is simply wrong. If (and that has still not been proven) it is necessary to impose a new source of Government revenue, Mr. Tim Ridley gave a much more acceptable solution several months ago, a reasonable ‘property’ tax. This was immediately shot down following an outcry from the real estate industry. Real estate salesmen did not account for the success of Cayman. Listen to the Financial Industry representatives.
The legitimate reason for government revenue is caused by people – it has to provide certain services for people who live and visit here. An income tax is one way to do this – but not in Cayman at this stage, after building a paradise on the absence of it. It is also too complex and taxes people just for working harder and earning more. And as for applying it to those from whom we already collect a large work permit tax, that is unjust. (Then to take away their entitlement to pension provisions is merciless.) User fees that cover the cost of providing the services we need from government are much better. (Why did the Premier disband the garbage collection fees???) A property tax (if needed to supplement our other general taxes like duties) could apply only to buildings or developed property, and those units already producing tourism occupancy tax could be exempted. Buildings owned and occupied by other non-residents (i.e. that are not in rental pools attracting tourism tax or rented out to local residents) could pay a lower tax, if it is really believed that such persons would be scared off by a small annual flat tax.
But as countless others have said, the first step is to hold and reduce the size of Government’s expenditure. There is a worldwide recession on. Businesses just cannot take up the extra budget padding, whether by bearing the burden of the 10% tax or otherwise. Why is the Budget going up, in this climate, and by such horrendous sums over this year’s, as have been touted? Surely it cannot be because there is an election next year. Get rid of all of the special give aways announced over the last few months and make reasonable trimming to everything else, starting with legislative expenses down.
It's obvious that this is a
It's obvious that this is a bait and switch as mentioned. A reason for everyone to get on board with the casinos. I personally agree with the casinos like I personally agree with the port. But we cannot afford either right now. There are dozens of ways to resolve our problems with the budget and Mckeeva is not concerned with that! He thinks that he is the end and be all of all people and that the the budget means NOTHING....that the UK haven't done anything about our deficit in recent years so why now.
Let's focus on the fact that Mac is playing games and in international public spotlight! This whole thing is a game! And our country looks desperate, dumb and corrupt all at the same time thanks to ONE MAN!!!!!! GET HIM OUT OF HERE. We should not be concerned about the budget itself passing our "higher government" but about our own welfare and capabilities as a people and as an economy!
This show has gone on long enough. I am positive we would be far better without a goverment at all than with Mac as leader.
I encourage all of you unemployed Caymanian lawyers (because there are so many, right? enough to take up all the jobs of expats who flee if this pretend tax were to go through right? is that what my ignorant counterparts have been suggesting??) to take it under you own will to investigate the wrongdoings of this madman and save our country!
....I was going to continue and offer alternatives but got tired. I'm just....tired of it.... this HAS to finally be THEE last straw for people, right?!
can't afford casinos????.....
can't afford casinos????..... could not read futher after that......
casinos are free, no cost to government with hundreds of million of potential revenue to gov....
"...hundreds of million of
"...hundreds of million of potential revenue to gov.."
Not to mention lots of room for under the table kickbacks.
Just sayin'. This is just a theoretical "just suppose" comment because I know that Cayman is home to only god fearing good Christians who would never ever consider such shenanigans..
Not if the Chinese own it.
Not if the Chinese own it.
So this is what's meant by
So this is what's meant by "burning Bush" in the good book.
McJerk.
McJerk.
i 'll have one mac-chicken to
i 'll have one mac-chicken to go please......
Y'all want fries wi that?
Y'all want fries wi that?
i feel like chicken
i feel like chicken tonight...chicken tonight.....
Cost of fuel to fill my car
Cost of fuel to fill my car each week - CI$25. Cost of nice dinner for 2 out on the town in nice local restaurant - CI$75 - $100, if trying to impress the little lady. Cost to private sector employers for breaking legally binding employment contracts by implementing Government's proposal (if passed), to discontinue pension contribution benefits promised to employees and commence deductions of 10% income tax from their employee's salaries to pay Government's coffers instead - PRICELESS
Where are you getting fuel to
Where are you getting fuel to fill a car tank for $25? Or is it a toy car?
SHHH! I can't let you in on
SHHH! I can't let you in on my little secret gas station, where I get cheap gas ! There would be a run on it and there will be none left for me ! Seriously though, it does only fill half of my tank, but since I am forced to be a Scrooge these days and now only drive when absolutely essential to do errands, and I map out all my errands to make sure I drive in a straight line, make no unnecessary turn-offs or go round the roundabouts or drive up and down without a plan. So somehow I manage to make the half-tank of gas last the whole week. Thank God I don't live in East End, don't know how those poor folks do it !
Robbing Peter to pay Paul, in
Robbing Peter to pay Paul, in other words, is how my grandma would sum up this latest idiotic proposal of Government. What really is going to happen, is employers who wish to retain good employees will offer to pay the 10% tax and still pay pension contributions for them, or alternatively, lose that employee and watch their business suffer when valuable skills and experience migrate to a more welcoming country who might just happen to be a competing jurisdiction to Cayman. Either way their business will suffer - they either have to pay up and lose additional income in a harsh economic environment where hardly any business makes money these days , or lose their workers' invaluable services when they have to resign as they can no longer afford life in Cayman, which in turn means more hardship for the business that loses its workers. So either way, the private businessman loses all around, for the sake of feeding the welfare monster.
The Premier should give
The Premier should give another mass status grant to Chinese nationals as they have the money to invest and are very qualified and capable workers, this would eliminate the need for taxes and this would balance the entire equation. We should open up to the Chinese let them come in and invest, work and live in this country they have the money and stop this foolishness of taxes. I say let in about 5,000 to 10,000 Chinese business people and professionals and see the positive impact on Cayman overnight.
And there we have it folks !
And there we have it folks ! This was all a brilliant master plan by UDP's propangandists, to push us to the brink of destruction, so that we would swallow CHEC coming here and bringing their hordes of workers and the casino they plan to build. And because we were pushed to the brink of Armageddon by the threat of Cayman coming to an end, we would now gladly welcome them with open arms, without batting an eyelash in protest. So this was the master plan all along. I get it now. Helium must have dreamed up this one. Too bad they couldn't control the outflow of news to the outside world and that this expat tax ruse that was announced, has made this place look utterly foolish and unstable. Unintended consequences, perhaps, but damage already done. Too bad for the ole world wide web, huh Helium? Them overseas reporters don't waste no time, you know?
Please stop smoking the
Please stop smoking the Donkey Weed. It's messing with your head.
Well, my employer had a staff
Well, my employer had a staff meeting and advised that under better economic circumstances, he would happily increase his work-permit staff's pay by 10% and continue paying pensions (despite Government's proposal that pensions would not have to be continued for foreign workers), just so his employees would not be adversely impacted by having disposable income subjected to further strain in the face of ever increasing cost of living. He cannot conscientiously deduct tax when he knows we can ill-afford it and would rather pay it as the employer. However, in these harsh economic times when the business has already experienced losses due to a lingering recession and already paid out ever-increasing duties, health premiums, utilities, permit fees, etc, and over the past few years has already cut way back on operating expenses to ride out the recession, he cannot afford to increase anyone's pay to offset tax deductions. This is like a final nail in his coffin for his business which was just hanging on by a thread. He realizes he will lose specialist skills as he will not be able to afford to increase the pay, nor can he afford to lose specialist services which will be a death knell to his business. He realizes that neither can we, as staff, take anymore hits ourselves in the face of ever rising cost of living, as we have already tightened belt by not having had a raise for over 3 years despite rising cost of living, and in some cases volunteered to take a small paycut to help our company ride out the harsh times, helping in our own little ways as employees to find areas where we can help reduce operational costs by cutting out wastage or finding more efficient / productive ways of doing things - simply because we know there is a truth to the saying - if our employer does well, we will do well. For the avoidance of any doubt, this employer is one of the best employers on island, with no black mark against it at the labor board or immigration board, no reports or complaints of any worker abuse - whether local or foreign - simply put, one of the best employers to work for as ALL are treated well and not exploited like some are on this island. So I guess both employer and employee are now in the same boat - we all will be out of a job / business soon, whether expat or local, doesn't really matter - we are now all affected. And you have your own government to thank for that. Thanks Cayman, it was nice knowing you.
I was in Cayman a while and I
I was in Cayman a while and I thought your colourful Cayman chickens were very funny, running around all the time squawking loudly, leaving droppings everywhere and scrambling away in a flurry of flying feathers the moment someone stopped to so much as look at them for a second. The thing I didn't know was that one was elected to your highest public office. Now that's funny.
My friends....Bush is too
My friends....Bush is too dumb to come up with a ploy like bait and switch. On another note I hope all expats understand more fully that Caymanians who protest the other things here like West Bay Road Closure, CHEC, East End Dock etc. do this because we know what is going on and we know whats best for Cayman as a whole, including whats best for you. I hope you will all stand with us in the future too!
He might be dumb as you say,
He might be dumb as you say, but his handlers sure are savvy and they are the ones controlling things behind the scenes, the might puppetteer, or puppet master, or vanishing houdini, or the neck that turns the head, or whatever you choose to call the ones really yanking his chains and calling the shots behind the scenes, you know the few that benefit the most and stand to gain the most from all that is going on in Cayman. It is time to keep a close eye on those ones, who throw their money behind their power and try to exert undue influence to get things done their way, to their benefit, to the loss of everyone else. Anyone comes to mind, in particular?
I protested with you against
I protested with you against all of these projects and will continue to support you whenever I see something which I agree is best for Cayman as a whole. We're not all out for ourselves, contrary to the thinking of a small element who post here.
As an ex-pat I think
As an ex-pat I think critically about each project and don't believe that Caymanians "know what's best for ex-pats" In a true democracy no group can claim that right, and each project will succeed or fall on well argued merits. There are plently of ex-pats who do contribute to these national discussions, many in their professional roles or via well known professional associations - working to bring their own knowledge and experience to the issues.
And ex-pats do stand with you when it makes sense. The reality is though that ex-pats also understand the need for inward investment to build infrastructure, and that sometimes this means making sacrifices if you want that investment. They also understand when projects are screw-ups in the making - for instance the east end port was just non-sensical and I don't think anyone saw it as a realistic project. I'd say the majority of ex-pats I've spoken to believe the payroll tax is a monumental screw-up - to the point even of being an extinction level event for the Cayman Islands economy - so the response has been much louder
Oh the other hand - Many ex-pats understand that things like the road closure are beneficial for the country and are reasonable actions to promote investment to benefit all of the island (relocate X feet of road for Y amount of investment). The port has divided people simply because there seems to be a complete failure to define what the project actually includes and to demonstrate why this option is the best - I think most people want a new port and support the notion of building one - the process has just been totally mismanaged.
So yes, continue to fight for what you believe, and certianly ask us to help - supported with your arguements- you when it's needed, but don't expect us to blindly follow you because "you know best" (do Caymanians have one single minded voice to follow? - that would be news to me) . You can't honestly expect to recruit and retain the best offshore talent in such a system, can you?
There it is: plain and
There it is: plain and straight..."A tax is defined as a "burdensome charge", whilst a fee is a payment for a service or for a privilege"." - www.ieyenews.com
Such a COWARD: Just TAX all
Such a COWARD: Just TAX all Billionairs on the Island the 20% and this will solve his spending problem. But no; he would be scoulded by yours truely. WHAT A ##@@!!xx COWARD.
Well, I stop taking taxi and
Well, I stop taking taxi and will take the bus now. Tired of these taxs.
Run Forrest. Run!
Run Forrest. Run!
We can't even get Mr Bush to
We can't even get Mr Bush to show up for a meeting he instigated. A great example of the way he communicates with the people.
I agree with the poster
I agree with the poster earlier who said this seems to be a bait and switch scheme - like, "okay, you all don't want expat tax introduced, so we have no choice but to legalize gambling as we have to raise the money somehow.". I feel this might be what they wanted all along, but like with the E/End cargo port which stirred up opposition and then suddenly turned into the location for the Shetty Hospital, this is just smoke & mirrors to distract the people, make them think Cayman is coming to an end, so that the people will finally accept legalized gambling. When you look at CHEC's drawings, the large unidentified grey area is said to be where the large casino will go and which will directly compete with the cruise lines. Not to mention the large retail area that will put the final killer nail in GT'n coffin. This expat tax is probably a ruse by Government to appease their Chinese friends and assure them that the gambling aspect will remain in the proposed port and nothing will prevent it. But what this inept government does not realize, is that the U.K. still has to approve this CHEC deal, and if it does not pass muster, it must go back to public tender as the UK have already said. Furthermore, the damage done to Cayman's international reputation by this announcement of expat-only tax, is tremendous, and just reinforces in people's minds that this place is a third world banana republic that is unstable and can change whim every which way the wind blows, but our leaders don't seem to realize that their words are broadcast internationally within minutes these days. No serious international investor or business will want to come set up shop here, except maybe for CHEC and the already present Dart who both stand to benefit the most, along with the political party who facilitates them. Well Cayman, you get what you elect - time to elect wiser and more educated people next time.
FORBES, one of the biggest
FORBES, one of the biggest financial brands in the world agree MAC is an idiot!
http://www.forbes.com/sites/danielmitchell/2012/07/31/heres-why-the-cayman-islands-is-considering-fiscal-suicide/
So true. I certainly hope
So true. I certainly hope someone sits the Premier down and try to explain what his stupid tax will cause to this country.
Moved the meeting to West
Moved the meeting to West Bay home base? Chicken! Coward!
How's this for our new protest slogan for all our signs, banners, etc.:
NO NO NO,
NO TO MAD MAC'S
INCOME TAX!!
Mac is hoping that fewer of
Mac is hoping that fewer of us will show up in West Bay. Let us show him that we are serious about this issue and show up in record numbers to protest this unfair tax.
A Caymanian family.
Typical of him. He is a bully
Typical of him. He is a bully who can dish it out but runs like a fairy girl when anyone stands up to him! He is a wimp. And now he is running to West Bay in hope that his cronies will stand up for him. WHAT A COWARD!
Mr Bush, please read and
Mr Bush, please read and overstand:
http://www.forbes.com/sites/danielmitchell/2012/07/31/heres-why-the-cayman-islands-is-considering-fiscal-suicide/
Thank you for the link to
Thank you for the link to this article and I especially like reading the intelligent and insights and opinions, just wish the contributors on CNS would debate the facts in such a manner. Again thanks very much.. by the way is the the editor of the report one half of the team that wrote the Miller-Shaw report for the Government?
My pleasure. I don't believe
My pleasure. I don't believe the article writer had anything to do with the Miller Shaw report. He is a Senior Fellow at the Cato Institute and Forbes is one of the industry leading financial publications - very well respected.
Mac on the Run from his bad
Mac on the Run from his bad policies.
The only thing Mac runs is
The only thing Mac runs is his mouth.
Cayman - aren't you even a
Cayman - aren't you even a little embarassed that you have to ask your guests to pay your bills for you? National pride comes from being able to support yourselves and live within your means. I'd be horrified if my home country put the burden of paying for itself onto its guest workers. Absolutely horrified.
"you" plural is most
"you" plural is most certainly not appropriate here!!!! "my home country" is also not the ONE doing this. THIS IS ONE MAN. Please do not assume that this is the thoughts and wishes of the Caymanian people because while the majority of comments you see on here that you pay attention from Caymanians are ignorant, believe me, that is NOT the majority. STAND WITH US PLEASE. WE NEED YOU.
When I see as many Caymanians
When I see as many Caymanians protesting as there are expats, then I'll believe that we are all in this together. With such a disasterous turn out for their own referendum recently, I don't hold out too much hope. Please prove me wrong, because you absolutely need us, remember we can go home or find pastures new, where are you going to go when your economy and society collapses?
The problem is when it comes
The problem is when it comes to money, too many Caymanians have no shame.
The fact that people with good jobs ask for what amounts to welfare from the government because they think they deserve to live above their means shows you some people have no shame whatsoever. The reason they think they deserve this is because of a misplaced sense of national pride.
Many Caymanians think they are better than other people simply because they were born Caymanian. This doesn't apply to all Caymanians, because there are many hard working people across all spectrums of society who take responsibility for their personal finances. But there is a large, significant portion of Caymanians who are slackers (to put it nicely) and a good many of them work in civil service. These are the people who complain loudest and the ones who politicians listen to.
There are also some young Caymanians who are being denied the opportunity to show what they can do. The problem here is that too many companies have seen young Caymanians come back from college who expect quick promotions simiply because they are educated Caymanians, but who are not willing to put in the hours and work that could earn them that promotion. This isn't an isolated occurrence. Enough Caymanians have done this in the past to taint the views of business owners/managers.
Maybe a complete economic collapse is the best thing for Caymanians. Two or three decades of austerity like the Bahamas had will likely change expectations and work ethic. I'm not sure what else can change the trend that I see now.
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