Cayman Islands scrap planned income tax

Tax haven remains tax haven.

The Cayman islands, famed for being a haven for tax exiles and a jurisdiction which imposes minimal transparency requirements on foreign businesses, has scrapped an income tax which it was planning to levy on expatriate workers.

The Associated Press reports:

[Premier McKeeva] Bush announced in late July that he planned to impose a direct tax on expatriate workers' income Sept. 1 to bail the territorial government out of a financial hole and to meet Britain's demand that Cayman diversify its sources of revenue beyond the work permit fees, duties and other fees it now relies on.

He later said the annual income threshold would be $36,000, which would have affected about 5,870 expatriates. He described it as a "community enhancement fee" rather than a tax.

The proposal outraged many people, who said the tax would be discriminatory and could destroy the islands' main economic anchor.

The tax is, of course, problematic; imposing a special fee just on expatriate workers is a prima facie unjust thing to do. But it is somewhat surprising that Cayman residents have been quite so vehemently opposed to what is, after all, a relatively normal thing to experience in other countries.

It's almost as though they moved there for the express purpose of avoiding tax. Almost.

Scrapping the tax now leaves the Islands with a black hole in their finances, which the other ~48,000 residents of Cayman will struggle to pay off. But there could be a silver lining to that, as accountant and tax campaigner Richard Murphy writes:

The idea that local democracy could actually bring tax havens down is, however, one that I do find rather appealing. There would be a sense of justice in it if it were to happen, and the more local people suffer in places like Cayman and Jersey for the abuse being administered from their shores the moper likely that is to happen.

The Cayman Islands. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Sadiq Khan likely to be most popular Labour leader, YouGov finds

The Mayor of London was unusual in being both well-known, and not hated. 

Sadiq Khan is the Labour politician most likely to be popular as a party leader, a YouGov survey has suggested.

The pollsters looked at prominent Labour politicians and asked the public about two factors - their awareness of the individual, and how much they liked them. 

For most Labour politicians, being well-known also correlated with being disliked. A full 94 per cent of respondents had heard of Jeremy Corbyn, the current Labour leader. But when those who liked him were balanced out against those who did, his net likeability rating was -40, the lowest of any of the Labour cohort. 

By contast, the Labour backbencher and former army man Dan Jarvis was the most popular, with a net likeability rating of -1. But he also was one of the least well-known.

Just four politicians managed to straddle the sweet spot of being less disliked and more well-known. These included former Labour leadership contestants Yvette Cooper, Andy Burnham, and Hilary Benn. 

But the man who beat them all was Sadiq Khan, the Mayor of Lodon. 

YouGov's Chris Curtis said that in terms of likeability Khan "outstrips almost everyone else". But since Khan only took up his post last year, he is unlikely to be able to run in an imminent Labour contest.

For this reason, Curtis suggested that party members unhappy with the status quo would be better rallying around one of the lesser known MPs, such as Lisa Nandy, Jarvis or the shadow Brexit minister Keir Starmer. 

He said: "Being largely unknown may also give them the opportunity to shape their own image and give them more space to rejuvenate the Labour brand."

Another lesser-known MP hovering just behind this cohort in the likeability scores is Clive Lewis, a former journalist and army reservist, who served in Afghanistan. 

Lewis, along with Nandy, has supported the idea of a progressive alliance between Labour and other opposition parties, but alienated Labour's more Eurosceptic wing when he quit the frontbench over the Article 50 vote.

There is nevertheless space for a wildcard. The YouGov rating system rewards those who manage to achieve the greatest support and least antagonism, rather than divisive politicians who might nevertheless command deep support.

Chuku Umunna, for example, is liked by a larger share of respondents than Jarvis, but is also disliked by a significant group of respondents. 

However, any aspiring Labour leader should heed this warning - after Corbyn, the most unpopular Labour politician was the former leader, Ed Miliband. 

Who are YouGov's future Labour leaders?

Dan Jarvis

Jarvis, a former paratrooper who lost his wife to cancer, is a Westminster favourite but less known to the wider world. As MP for Barnsley Central he has been warning about the threat of Ukip for some time, and called Labour's ambiguous immigration policy "toxic". 

Lisa Nandy

Nandy, the MP for Wigan, has been whispered as a possible successor, but did not stand in the 2015 Labour leadership election. (She did joke to the New Statesman "see if I pull out a secret plan in a few years' time"). Like Lewis, Nandy has written in favour of a progressive alliance. On immigration, she has stressed the solidarity between different groups on low wages, a position that might placate the pro-immigration membership. 

Keir Starmer

As shadow Brexit minister and a former director of public prosecutions, Starmer is a widely-respected policy heavyweight. He joined the mass resignation after Brexit, but rejoined the shadow cabinet and has been praised for his clarity of thought. As the MP for Holborn and St Pancras, though, he must fight charges of being a "metropolitan elite". 

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.