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?