Vol. 35 No.37
       ©2007 Marianas Variety
Monday, May 7, 2007 www.mvariety.com
Serving the CNMI for 35 years
 

© 2007 Marianas Variety
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Sales tax

WHERE are all the fee increases going to go? To fund the GovGuam operations when 90 to 95 percent is payroll leaving 5 percent for the “others” category.
If the shortfall is in the 5 to 10 percent range, this could be plugged immediately and easily by eliminating the regressive GRT and instituting a sales tax or a value added tax. That would be better than all these back-door tax increases. No legislator who a votes for this slew of fee increases DESERVES reelection.
Most people know that it is going to keep the Camacho administration afloat until the military construction money starts to flow into the local treasury or if they can sneak in some borrowing.
So instead of socking it to the small business owners and those on the margins, let us institute a sales tax where one will spend based on what one makes. And lower income tax rates as GOP chair Phil Flores said sometime back on Newstalk K-57, to help boost saving and investment.
There are some businesses now that do not pay any taxes and all should be brought back gradually on-line and into the system. People like to talk about the small business person and creating the right climate for him or her but the fact remains that many small businesses fail and some of those that do succeed get gobbled up by larger businesses.
So here I propose a toast to all those who started a small (or at least tried to) and never got the recognition for doing so in the midst of a “maelstrom.”

MATT PHILLIPS
Mangilao, Guam