Kick it real good
AS one of their proponents has admitted, the proposed tax hikes aim to prevent job losses — in the CNMI government. Yes, the same bloated government with redundant or duplicative departments, divisions, offices, agencies, programs and services. The tax hikes would not actually fund “the delivery of public services” — unless providing jobs to voters (i.e., supporters and/or potential supporters) or protecting their jobs is a public service.
The proposed tax hikes are basically another kick at the can on the part of (pandering) politicians unable to make hard decisions — you know, the ones they supposedly signed up to do. So far, the House of Representatives, in particular, has not conducted public hearings on any of its tax-hike proposals. In the not-so recent past, those who loudly complained about the failure to conduct public hearings before passing legislation were members of the minority bloc. But now they’re in leadership positions. Apparently, that’s about the only change we can believe in.
Do as they say, not as they do
CRITICS of the proposed tax-hike bills have noted that in this bad economy increasing business costs may not result in additional government revenue. These costs will be passed on to consumers, resulting in higher prices when everyone is already complaining about rising prices. Demand for the taxed items may drop. Many consumers are likely to switch to cheaper alternatives. Businesses may have to further downsize or reduce their workforce. All this could mean less not more revenue for the government.
Since the economic meltdown that started three years ago, businesses have been reducing their costs, including their employees’ work-hours or, worse, the number of their personnel. They have been making painful adjustments while waiting for their largest delinquent customer — the CNMI government — to finally pay its bills, or some of them at least.
Instead of doing its part, the same government wants hard-pressed businesses and other taxpayers to pay more. The government will claim that it is already implementing “cost-cutting measures” while saying, often in the same breath, that it needs more revenue. Which, of course, means that it hasn’t significantly reduced its expenses. And has no intention of doing so — not at the risk of the incumbent officials’ political careers.
What they’re up to
MEANWHILE, legislation has been introduced to create a new government agency whose duties are already being performed by existing agencies. Another measure would make it costlier to invest in the CNMI.
These on top of the recommendation to increase the business gross revenue tax, and the proposals to increase the marriage license fee, and the taxes on beverage containers, imported betel nut and lime, and construction activities.
Taking more money from other people.
That, sadly, is the best they can do on Capital Hill.
In the end, they know exactly what they’re doing with their proposed (and ill-advised) tax hike measures. Passing these bills would allow them to project “additional revenue” in the “future,” and justify the government’s current spending levels that cannot be funded in this economy.
In short, a budgeting “trick.”
But as they say in politics, “Fool me once, shame on you; fool me twice, I’ll probably re-elect you.”
