Dear Sir,

I can understand that direct property taxes would not be welcomed by many local property owners and other vested interests. However, it is factual that many people who own a property in Cayman also own very large holdings of properties in the United States and elsewhere, and they pay property taxes there.

There really is no evidence offered to date to suggest that people would not pay property taxes in Cayman if they were implemented.

If these taxes are not palatable, then for sure the government should increase the land transfer fee to around 12% to 15% on properties over $500,000. Trust me, if someone wants a house or land that costs $500,000, another $75,000 will not be the problem that will deter them from making this property investment. Our history shows that one of the largest property deals ever done on this island was when the land transfer rate was at 10%. That owner made hundreds of thousands of dollars from
that investment.

This present government is not serious about balancing the budget. They are more interested in justifying the introduction of casino gambling, lotteries, and justifying the dredging of the North Sound.

They are more interested in making the last government look bad so this government can look good. Is this not a sad management practice? We see this more and more in the private sector all the time. It is very contagious and annoys me so much.

The crisis that this government is creating is just their only way of managing the country. Manage by crisis, and by making themselves look good by making others look bad! They do not need to raise taxes to cover the alleged $80 million deficit. What they need to do is to reduce the waste that is presently being done. They need to slow the rate of expenditure so that revenues are in excess of expenses. Why does a Minister want to spend $50,000 on refurbishing an office in these times? Why are travel expenses skyrocketing for the government?

Lastly, while I agree that some of the excellent services that the government has provided the public with over the years are not adequately paid for by the users, and while there is a lot of merit in increasing the related fees to cover their cost; increasing taxes on consumables and staples at a time of world recession can lead to cost-push inflation. Be careful, as this will further set back an economy that has been struggling for the last five or six years, and will cause many small businesses to fail.

My advice to this government would be to reduce recurrent expenditure and curb the Ministers’ egos.

Dexter Rivers