Why are google profits good for Bermuda?

I fail to understand what advantage Bermuda gains by playing host to companies like Google.  Companies with a physical presence on the island benefit us by creating jobs and opportunity.  Companies with a brass plate seem to create a little bit of legal work and a tremendous amount of bad press and reputational damage.  What am I missing?  Why do we cater to companies like google?

Despite companies like Google, Bermuda should keep its 0% corporate tax.  We need it as a competitive advantage to attract international companies to base themselves here and create jobs.  However we need some means to encourage the Google’s of the world to establish more of a presence on the island or relocate elsewhere.

Perhaps we need to get creative and introduce something like a jobs for profit policy requirement.  For example, what if we introduced a requirement that 10 people need to be physically resident and working on the island for the company for every $billion in profit. So in the case of Google, to support the $15.5 billion they moved to the island in profit, they’d need to maintain at least 150 jobs here too to demonstrate that they’re actively using the island as more than simply a tax shelter.

Why would this not work?  What are the holes in the idea?

Comments

comments