Gov. Turnbull wants a task force to study the feasibility of establishing a stock exchange in the territory. "The creation and implementation of such an initiative may prove vital to the continued growth of our economy," the island’s chief executive said in news release announcing his executive order to establish the study. "The territory could easily become the financial capital of the Caribbean and position itself to be the financial leader in the region," the Governor said.
Sen. Roosevelt David praised the idea, explaining "What they want to do is attract capital to the territory, which is good." He said the exchange could have over-the-counter and Internet trading, and probably would be based on St. Croix. "This would give Economic Development Commission companies the opportunity to generate their revenue here," David added.
Stock exchange??? They are joking of course. The IRS won’t even allow the existing economic development program to maintain its current beneficiaries, no less expand this good program. Why would any major Wall Street firm want to move to the islands when there are no incentives to do so? The BVI’s are so much more atractive because their government understands the concept of allowing these firms to profit and get tax breaks without requiring absurd residency rules and other impediments so that vast amounts of capital flow into the island economy and benefit the residents. Much more tax revenues result than the beneficiaries reap. Then again, how could our federal officials understand this when they can’t even grasp the importance of the local yacht charter business? Maybe its time the USVI demands the right to vote in presidential elections and to set its own economic policies.
But Rob, if the good people of the VI’s have the right to vote for president, it would mean they have achieved statehood.
I’m sorry to say, that as a resident of California and a US tax payer, I cannot afford their statehood.
But, I will still spend gobs of money for vacation.
Allan,
Of course they deserve statehood. Remember a little thing called “Taxation without Representation”? From what I recall it started the end the British overseas empire.
I think you have Puerto Rico confused with the USVI. PR pays no US Federal taxes and something like half are on welfare. The residents of the USVI are hard workers and US tax payers paying taxes at the same rate that you do, maybe even more…but get much less back in services and can’t vote for president. That’s not fair, is it? And if they need to offer reasonable tax breaks to attract mainland companies and to improve the economy they should be able to do so since it benefits all Americans, even the ones that only know enough about the islands to take their vacations there.
Besides, isn’t California now part of Mexico? 🙂
Well, as far as California being part of Mexico….we’re trying to get it back, California that is.
I certainly don’t have VI’s & PR confused. I do know that VI’s pay tax but last time I heard the money stays in the VI’s. Right???
” even the ones that only know enough about the islands to take their vacations there”
You’re of course referring to me with that quote right. Well, since you don’t know who I am or anything about me, you may just be wrong.
If the tax money stayed in the USVI we would not need to have this discussion because they would not need more funds. If you look at the amount of taxes remitted by USVI tax payers to the US Treasury and then compare that to the dollar amount of services returned, you’ll see my point. More goes out than comes back in. And now, by placing absurd restrictions on the economic development program there is no incentive for existing companies to stay and certainly no Wall Street firms are going to come. Goldman Sachs just got close to a billion dollars in tax breaks to stay in New York near the World Trade Center site. How could the USVI match that? And since they can’t vote for president, they have little chance of changing that inherently unfair and undemocratic tax system. There is no reason that they should not be able to vote. Especially when we are trying to promote voting throughout the world. Don’t take it personally, most tourists that come to the USVI have no idea how many problems there are in paradise.
http://www.vilaw.com/tax.html
Rob, go to this site and it will explain how tax VI tax system works. Yes, VI’s pay the same rate, but it is administered by the local revenue office. Tax money stays in the VI’s and is administered there. In fact that is one of the reasons that tax refunds can take forever in the VI’s.
There is no money to the US treasury. It stays in the VI treasury