IN A Jan. 1 talk radio interview, new Senator Judi Guthertz voiced her intention to dismantle existing tax breaks and exemptions, to include repeal of enabling legislation.
Most agree that GovGuam could save millions through a comprehensive overhaul of such legislation and policy, but Senator Guthertz is entering a politically dangerous territory with her vow to do away with the Dave Santos Amendment—a provision that provides a gross receipts tax exemption on the first $50,000 of gross revenue for business owners grossing less than $500,000 per annum.
Revenues are cumulative: if the taxpayer is involved in more than one business, all revenues are considered when applying the $50,000 exemption.
The first mistake Senator Guthertz made was to completely bobble her view and description of the exemption, revealing that she doesn’t really understand the law or what it’s all about. In her declared intention to target this small business break that she described as one of the two exemptions that ‘really stand out’, she flatly stated that the exemption applies to revenues of $500,000, a completely erroneous statement.
Her second mistake was to express her intent to eliminate this small business tax relief—a move that will virtually guarantee her a one-term legislative tenure. She obviously has no concept of just how onerous a burden the GRT is for all business owners, especially small businesses: a tax levied on gross revenues, regardless of profit and loss positions. It’s applicable and payable regardless of whether the business is making or losing money, and often becomes the make-or-break factor for struggling small businesses.
Despite the fact that Guam voters apparently have extremely short memories, it’s not too early to begin making a list of those you’ll consider supporting—or not supporting— in the next election.

Dave Davis
Yigo, Guam