I live in the Cayman Islands where the tax structure is built on indirect taxation and fees. The government is funded off 22% import duties on almost everything, work visa fees, stamp duty on property transfers, and a whole list of fees for everything having to do with the financial sector. But no sals tax, VAT, or other direct taxation is imposed.
Still the economy slowed and the premier proposed a “Community Enhancement Fee” of 10% of payroll if the worker’s wage is above a certain threshold* only to be paid by foreign workers in the private sector to close the budget gap. He insists that such taxes are in place in other countries but I cannot find an example.
Anyone know of a place that only imposes such an income tax on expatriate workers and exempts citizens?
*10% of the entire wages if the wage exceeds the limit. Initial proposal was limit of CI$20,000 (US$25,000). A worker with annual wage of $19,999 pays $0, a worker with $20,001 pays $2000. Subsequent revisions of the proposal raised the threshold to CI$36,000 (US$45,000).
** Eventually the proposal was withdrawn and other revenue measures were proposed.