Lettersto the Editor
New Tax MeasureCould Cost Jobs
Dear Sir,
I am shocked at the United Democratic Party'sproposed increases in taxes and in particular Bank Licence Feesand higher garbage fees. If the Legislative Assembly adopts thisTax measure then we can expect a lot of Caymanian people to loosetheir Jobs. Of all the 'A' Class Licences only 7 Banks need sucha licence and two of them are merging. It simply means that theother 30 or so will have to give up their 'A' Class licence. Notevery Bank needs an 'A' Licence, they just use this as a marketingtool and the prestige that it affords the institution.
Last year the $20 Million tax package putthe country into recession. Now this year the people are facedwith 40% higher property insurance premiums and 33% higher medicalinsurance premiums and the world's economy is in a recession,yet again the Government chooses to increase taxes at unprecedentedlevels. Did the Government not see the Chamber of Commerce surveyof local Businesses. With such a poor outlook how can the Governmentexpect to raise $55 million? They cannot! Most of the businesswill fold before the end of 2003 and be delinquent in their taxesfor 2002.
This should be the time Government reducesspending and taxes so that cash flow can accumulate in the privatesector in order to stimulate the economy.
As far as collecting $2.50 per hour forcar parking, anyone who proposes such a tax needs to have his/herhead examined. If people can hardly afford to buy gas for theirvehicle how can they pay $20 plus a day for parking. What willhappen is car drivers will take the bus into Town, and use lessgas by doing so and the Government will collect even less revenueon the gasoline tax.
As for higher Insurance Manager's and MutualFunds Manager's taxes, what we will see is a lot of merging andconsolidation and less employees in order for the companies toachieve greater economies of scale. This would have likely takenplace with the Banks and Law Firms sooner or later in any event,but now they will have to. And this again means fewer jobs forCaymanian employees of course.
It also seems the Second Elected Memberfor West Bay thinks he is the Minister of Finance. He claims thisis his 'second budget address'. I thought the Financial Secretarygave the Budget address while the Members of the Legislative debatethe proposed Budget. Clearly this position of power he enjoyshas started to affect him. If MLAs continue their rhetoric, thenpotential investors will think of Cayman like how they think ofsome other countries where the politicians are arrogant and socialist.
I am also sick of hearing MLAs brag abouthow educated and experienced they are. It seems to me some ofthem are of the opinion that all the other Caymanians are idiotsand MLAs alone have any worthwhile knowledge.
If ever a time that we need to say a prayer,it is this Christmas. I am sure if we do not, by next Christmaswe sure will wish we had.
I hope not to be confused with any otherDexter.
Dexter Harlan Rivers