By Gerardo R. Partido
Variety News Staff

THE Guam Federation of Teachers has joined the clamor for a review of the government’s Qualifying Certificate program, which provides tax perks to selected companies.
Due to GovGuam’s state of financial emergency, GFT called on the Legislature to immediately place a moratorium on all tax breaks, tax rebates and qualifying certificates for companies enjoying the privilege of doing business on Guam.
According to GFT president Matt Rector, the people of Guam are losing out on possibly hundreds of millions of dollars in tax revenue from corporations and businesses.
He said this prohibits GovGuam from providing the quality of public services, healthcare and public education that the people of Guam deserve.
“It’s time for our corporate citizens to start paying their fair share. Guam’s working families currently pay the majority of our island’s taxes and now it’s time for those companies that have been paying little or no taxes to start sharing our financial burden and pay taxes like the rest of us,” Rector said.
The GFT head pointed out that in order to make payroll for the Guam Public School System, Gov. Felix P. Camacho had to use his organic power to borrow $6 million.
“While this might get us through the last payday, a more permanent solution is needed,” Rector said.
He added that the Department of Administration has “under-released” close to $20 million to GPSS this fiscal year leaving the public school system and school children “incredibly” vulnerable with hot classrooms, lack of supplies, no Xerox, and constant fear of a payless payday for faculty and staff.
Rector warned that GPSS and GovGuam are breaking both federal and local laws by not having cash to pay employees the wages they have already earned.
“This not only affects GovGuam workers and their families; it hurts our entire economy,” he said.
While a few businesses profit from tax breaks and don’t need local consumers, Rector said many local businesses rely on GovGuam customers and the constant threat of payless paydays causes workers to spend less money in the economy.
GFT has been meeting with members of the Legislature for the last couple of weeks about this issue. In separate meetings with Speaker Mark Forbes, R-Sinajana, and Vice Speaker Eddie Calvo, R-Maite, Rector said both stated that they would vote in favor of a moratorium on all tax breaks and rebates.
“It’s time for our elected leaders to stop placing blame for the problem and start taking credit for the solution. This inherited financial cancer can be cured overnight by passing a moratorium instantly. This is a time for bold leadership and bold action. Our children, our families and our island are counting on them,” Rector concluded.