Friday, September 25, 2009

What will Cayman do next?

From Cayman Net News:

"A key meeting called by the United Democratic Party (UDP) government to talk about the Cayman Islands' financial future was cancelled at the last minute on Thursday night. . . . just minutes before the meeting was due to begin, it was announced that it had been postponed."

What is going on? A TJN correspondent said:

"there was supposed to be an announcement outside the Court House last night at 7pm in relation to the introduction of taxes - either property or payroll tax to be introduced given the recent problems. . . . the meeting was called off at "short notice.""

As we've already remarked, the Cayman Islands is in big trouble. The BBC has reported:

"Such is the depth of their problems that the Cayman Islands face having a major construction project frozen this week as they have not paid the contractor.
. . .
As things stand, the Cayman Islands government cannot borrow any more money to pay debts as it has hit its borrowing limits, which means it now has to get permission from the UK Foreign Office to borrow any extra money.

The Foreign Office is willing to let them do so, but only if they introduce direct taxation, something the Cayman leader, McKeeva Bush, is wholly opposed to."

Government leader McKeeva Bush is casting around for anything to avoid levying a -- horror! -- tax. What alternatives are there? Privatisation? That's certainly being considered - but it's a one-off thing, and it won't be popular.


"The Cayman Net News reports that its unscientific online polling has discovered a growing and surprising support for direct taxation."

Taxes! Whatever next?


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