Current trends are pointing to a conversation that Cayman can no longer postpone and will most likely have to confront sooner rather than later.
It’s likely to be an uncomfortable conversation about an inconvenient truth.
It’s about taxes, duties and government fees: who pays, how much is paid and importantly; what the money is to be used for.
On the latter and most important point, the answer lies in two pressing issues.
One concerns the plight of an estimated 14,000 Caymanians who are due to be retired in the next 12 years and are said to be facing the prospect of being unable to fund their healthcare.
What has been described as a pending healthcare crisis for the Cayman Islands resulting from this situation is behind a motion piloted by MP Chris Saunders and seconded by MP McKeeva Bush calling for setting up a Healthcare Protection Fund.
How to fund it?
The proposal is for an annual fee of 2 per cent on real estate owned by non-Caymanians.
In other words, a tax.
The other issue is beach erosion.
According to the new leader of the opposition Progressives party, Joey Hew, with beach erosion threatening prime beaches other than Seven Mile Beach, an urgent and lasting solution needs to be found.
He is proposing a special fund to ensure that beach ‘renourishment’ - or replenishment - can be an ongoing process.
Mr Hew is proposing financing it through an increase in tourism room tax.
Unless there are other practical proposals to address these pressing concerns, some semblance of additional taxation seems to be the only solution.
In these two instances cited, it’s clear that the funding is needed and what it’s needed for.
Already debate has started more about who the taxes are targeting more than what they are being targeted for.
As we stated at the outset current trends are pointing to a conversation that Cayman can no longer postpone and will most likely have to confront sooner rather than later.
Indeed, as is being proven already, it’s an uncomfortable conversation about inconvenient truths. Those truths are how to pay for the healthcare of our retirees in the coming years, and how to raise the money to protect and replenish our beaches.
In this instance, the ‘why’ seems as much as - and possibly even more pressing - than the ‘how’.
If not by taxation and where that tax is being applied, then what other means are necessary to address these issues; one already happening, the other on its way in?
Is it now time to let the taxation conversation begin…and feature in the upcoming election campaign?
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