Diego Vincent Camacho
REPRESENTATIVE Diego Vincent F. Camacho on Tuesday criticized the Senate for its failure to act on bills that, he said, could address the CNMI government’s revenue shortfall.
He was referring to the House bills that would raise taxes.
During the miscellaneous part of the House session, Camacho said he felt compelled to make a comment on the communications that the House had received from the Senate, many of which pertained to Senate resolutions. He said most of the resolutions “are meaningful and commendable.”
But, Camacho said, “I’d like to also see communications in regards to legislation that could address our revenue shortfall.”
“I plead to our good Senate members to entertain the…bills. Some…have not been assigned [to the appropriate committees],” he added.
In an interview on Wednesday, Senate President Edith Deleon Guerrero said, “what was said is irresponsible and uninformed.”
She was not sure which Senate resolution Camacho was referring to, but “perhaps he does not think it is important or worthy.”
She noted that the Senate resolutions are for worthy recipients like the late former Senate President Julian S. Calvo, who “honorably served the Commonwealth for many years, and the three CNMI sons who are joining the military to serve the nation so all of its citizens will continue enjoying freedom.”
She said the Senate resolutions also expressed support for the “Operation 500,000 [tourist arrivals] for our economic survival in 2024 and 2025, and the Marianas Tourism Education Council in building the CNMI’s tourism market by training and educating our students on how important tourism is to our economic survival.”
Deleon Guerrero said it is unfortunate that Camacho made “a general statement because he knows all of the resolutions are worthy of our support.”
As for the proposed tax-hike bills that the House has passed, she said they are with the Senate Fiscal Affairs Committee.
She said all bills from the Senate and House “are all promptly referred to committees as they are received.”
The House tax-hike bills include House Bill 23-7, which aimed to “increase government revenue by properly taxing tobacco products.” The Senate rejected the bill in April.
The other House tax-hike bills pending in the Senate are:
• H.B. 23-41, to impose an excise tax on imported betel nut and lime;
• H.B. 23-68, to impose a 10% ad valorem tax on private individuals buying vehicles outside the CNMI;
• H.B. 23-78, to increase the tax to 15 cents from 5 cents on soft drink and alcoholic beverage containers; and
• H.B. 23-74, to impose a 3% tax on construction activities that cost over $250,000.
Unlike the House, the Senate conducted public hearings on Saipan, Tinian and Rota on all these bills.
A business community member has said that if taxes go up, prices will also go up. “If the whole objective of [a tax hike] bill is to generate revenue [for the government], we feel it’s a misconception to think [that] businesses will make the same number of sales or more. It’s quite the opposite. As a matter of fact, we would make less, therefore the government will generate less revenue.” In a “worst case scenario,” if wholesalers make less money, they will have to reduce their work hours and/or staff, which will again reduce tax revenue.
