Vol. 35 No.7
       ©2007 Marianas Variety
Monday, March 26, 2007 www.mvariety.com
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Guam Chamber maintains opposition to tax increase

By Gerardo R. Partido
Variety News Staff

THE Guam Chamber of Commerce is maintaining its position “against any and all tax increases.”
This was the Chamber’s reaction following Gov. Felix P. Camacho’s proposal to increase the gross revenue tax by 25 percent.
According to Chamber chairman Stephen C. Ruder, the opposition to any tax increase is strongly supported by the Chamber’s 320-plus members, their 35,000 employees and the community at large.
“The business community is working hard to drive the economy forward and this is a step backward. Before we increase taxes, we should move forward with the implementation of ideas that focus on government reform, which it has not done to any significant degree and not rush to increase taxes,” Ruder said.
He added that a tax increase is not only an additional burden on the residents of the island, it is also unfair that the government is seeking this route to raise revenues without first attempting to meaningfully reduce expenses.
Between 1999 and 2004, Ruder said the business community already tightened its belt and reduced expenses to try to keep the economy moving.
“Now it is time for the Government of Guam to tighten its belt to make the necessary adjustments in keeping government services running,” Ruder said.
Suggestions already put forth publicly by the Chamber include:
* Streamline the government workforce to eliminate unnecessary positions and to achieve economies of scale;
* Salary increment suspension and perhaps retractions of those recently given;
* A repeal of all GovGuam salary increases given during the last calendar year;
* The completion and implementation of a GPSS management audit;
* The outsourcing of all bid and project administration res-ponsibilities for capital improvement projects to private companies. The administration’s ongoing efforts at the Department of Public Works will circulate millions in 100 percent federally funded capital improvement projects in the local economy, which will provide short-term revenue relief to the general fund.
* The privatization of the Port of Guam’s terminal operations; and
* The expeditious closure of the Ordot Dump and the opening of a new landfill.
“We also urge the privatization or a public/private partnership for the closure of Ordot and the opening of the new landfill, the collection of residential waste and collection of tipping fees. Guam also has three publicly run Medical Referral Offices that could be privatized,” Ruder said.
Moreover, the Chamber is pushing for the overhaul of GovGuam’s procurement system.
“There are items that can be increased without affecting the livelihood of our citizens that would help the government recover the true costs, such as driver’s license fees, business license fees, bus fares, and others,” the Chamber chairman said.