Every Bermudian will be severely impacted by Barack Obama's election as US President if the new administration decides to target Bermuda as a tax haven.

That is according to Phil Barnett, president of the Chamber of Commerce, who congratulated President-elect Obama on his win, but he warned that Government must act quickly to put the Island's case for not being a tax haven and the important role international business domiciled in the country plays in the growth of the US economy.

Mr. Barnett also called on Government to suspend term limits to ensure the future of overseas companies based in Bermuda.

Despite Obama not making direct reference to Bermuda, the Island was on a list of jurisdictions taken from Internal Revenue Service court filings identified as "probable locations for US tax evasion" under the "Stop Tax Haven Abuse Act" introduced by Senator Obama, Democratic Sen. Carl Levin and Republican Sen. Norman Coleman last year.

"First and foremost, the Bermuda Chamber of Commerce extends its sincere congratulations to President-elect Obama on his historic win," said Mr. Barnett.

"President-elect Obama is an electrifying, unifying, and passionate man whose positive message of change was meaningful to many."

However, Mr. Barnett cautioned that the implications could be great for Bermudians should the Obama regime ignore the Island's pleas not to target it as a tax haven.

"However we would be fooling ourselves as a country if we don't realise that should the Obama presidency choose not to listen to Bermuda's case to not target it as a supposed 'tax haven', then every Bermudian, in every job, no matter what their financial status is, will be severely impacted," he said.

"Government must act swiftly and expeditiously to aggressively detail how Bermuda is not a 'tax haven', and specify how the strength of the various segments of the international business domiciled here are succinctly beneficial to the ongoing growth of the US economy.

"In addition, Government must be very cognisant of the precariousness of international business, and must also act swiftly to clearly reassure international business that we need them, that we want them, and that we are re-rolling out the welcome mat for our international business friends who have chosen to do their global work based out of Bermuda."

He said that the fastest way to reassure international business of its importance would be for Government to immediately suspend the term limits policy.

"The Chamber reiterates that term limits continues to be locally the single most significant threat to the ongoing stability of international business in Bermuda," he said.

"It is still discussed ad infinitum in boardrooms to bars. The suspension of term limits would reassure international business, and allow them to focus their energies on lobbying the new US Executive government.

"The Premier and the Minister of Finance, have their work cut out for them with the election of Obama, and we are pleased that they have taken great pains over the last couple of months to reassure international business of their importance."

Don Kramer, chief executive officer of Ariel Re, said: "The Democrats are crowing about the change and opportunity they are going to create and in the midst of this Representative Richard Neal, Democrat, of Springfield, was reported as saying he hoped to win approval of a measure he has championed for years to close a loophole that allows domestic businesses to avoid US taxes by locating their official headquarters in Bermuda or another offshore locale.

"But Obama's advisors are going to be selected from rational areas. The advisors that the Democrats will use will hopefully be well-versed in this industry.

"I think it bodes well for America to have a vibrant and talented man whose heart is in the right place as President."

John Kephart, president and CEO of Capital G Bank, said: "It is a historic moment for the US, but despite that, there are some serious issues that are going to have to be faced, which in turn are going to create a number of issues for Bermuda.

"The US Government has a $10 trillion deficit and they are spending at a rate so far in excess of what they are bringing in that they either have to lower benefits or increase revenue, probably the latter.

"It means that they will be looking at every possible revenue source to increase it, including letting the tax cuts expire that Bush put in place for those earning more than $250,000 a year, and that is going to have a significant long-term effect.

"There continues to be a heavy concentration on finding the loopholes that companies have used to move money offshore and, as a result, I think we are going to see more capital flow back to the US.

"The challenge for Bermuda, in my mind, is the ability to have everything ready at the table when a decision gets made with regard to offshore tax havens, of which we are not, but constantly get called one.

"The good news is that the Government of Bermuda has a very close and warm relationship with the Democrat legislators, which is good because that is going to allow them to make the case for Bermuda."