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THE BIG ISSUES

Since the last election, four issues affecting international business have captured the public’s attention:ImmigrationValid for one to three years with a limit of six years, the work permit term limit was increased to ten years in 2011 for “good corporate citizens”, with more stringent criteria that the company and job role must fulfil. The role must be critical to the success of the company and growth of Bermuda’s economy and the company should have at least 50 percent Bermudian employees.Tax increasesIn 2010, Bermuda’s payroll tax increased from 14 to 16 percent. In an attempt to stimulate Bermuda’s economy, the tax rate was rolled back to 14 percent in 2011. Many re/insurance leaders believe the payroll tax increase caused Bermuda jobs losses and a “rupture of trust” between Government and the industry as insurers had been assured they would be consulted if there were ever a need to raise the payroll tax.Government debtGovernment has projected its net cumulative debt will be $1.41 billion during the next fiscal year — costing $240,000 a day in interest payments to foreign creditors. Earlier this year, Government raised the debt ceiling by $200 million. With the latest increase, the debt ceiling has risen by more than $1 billion in the past four years. Many in the IB community feel Bermuda’s soaring debt has hobbled its ability to stimulate economic activity and increases the probability of instability and social disorder.Right to buy propertyMany in the IB community argue that to attract and keep talent on the Island, they should to be allowed to invest in Bermuda and make it their home. In 2011, the Government increased the annual rental value (ARV) of properties open to purchase by foreigners from $155,000 to $176,000. But a restriction on Bermudians selling homes to non-Bermudians has been lifted. Realtors and homeowners with houses on the market argue the increase in ARV making it harder to sell homes.