They spend, you pay
PERHAPS there is something about politics that makes many of its practitioners impervious to irony, even if it’s already staring them in the face. Recently, at a ceremony to swear in 16 new government employees, the governor told reporters about the government’s $3 million shortfall, saying “we can’t…afford to cut anymore, so we got to have…adjustments,” referring to tax and fee hikes — in this economy.
Twelve years ago, amid an economic downturn and the introduction of tax-hike measures on Capital Hill, the then-president of the Saipan Chamber of Commerce said:
“If the CNMI government (or any government for that matter) had been operated in even a remotely business-like manner over the past few decades, many of the issues facing us today would be at least tolerable. It seems so unfair that the future of those of us in the working class, our children and grandchildren are being dictated by a select few who somehow feel entitled to live at a standard above us and are willing to pass on their debts to following generations…. Yes, I do understand financial issues related to inept governments are a worldwide problem and the CNMI is not special in that respect. The key difference is that we are small enough we could institute positive changes quickly, if we had the foresight and determination to do so….
“Do we have any realists in the CNMI Government… people who can objectively look at where we are and chart a clear course to recovery? The course they have to chart must be for the good of all the residents of the CNMI and not just for themselves and their families. To start the process off, the government must take steps to drastically reduce its size, curb its spending and dispense with the idiotic practice of ‘spend it or lose it next year’ budgeting. Accountability is the key to success.
“We…have repeatedly tried to emphasize to the government the importance of a healthy private sector, as a means towards building a stable economy. More often than not, we just end up scrambling to fend off new and increased taxes being thrust upon by an increasingly desperate and cash-strapped government. They seem to believe raising taxes will solve all of their problems (80 hour pay periods, a healthy Retirement Fund, adequate healthcare, more tourists, etc…dream on).”
Today, many elected officials are still dreaming — of holding taxpayers by their ankles and shaking them until money falls out.
Fortune telling
IN an earlier interview, the governor said he has been “taking a lot of heat for doing a pivot.” No, not for the pivot itself. Businesses and island residents are aware of national security issues and appreciate the U.S. military’s peacekeeping role in the region.
The main problem with the governor’s pivot is his expectation that taxpayers who are already struggling in this economy should pay more while we all wait for pivot’s “benefits,” which he believes will be realized “in about two years.” Amazing. The government can’t enforce the anti-littering and several other laws, and his administration has repeatedly missed its quarterly revenue projections, but the governor is certain that pivot is “going to [have] a lot…more benefits for the Commonwealth” in “about two years.”
OK then. Meanwhile, while we wait for, well, “better times,” the governor should identify “crucial” government services, and prioritize them. (Hiring political supporters is not a “crucial service.”) The governor should propose the elimination or consolidation of redundant departments, divisions, bureaus, agencies, offices or programs, as well the reduction in the number of Senate and House seats. The government’s policy on cell phone and vehicle use should be revisited, and its utility usage must be reduced significantly.
In about two years, when we are finally enjoying the “benefits” of pivot, then we can start talking about the CNMI’s tax rates.
Right now, however, elected officials should be repeatedly reminded that it’s not the government’s income that’s problematic, but its spending levels.
