The leaders must listen to the community in general and table such inputs for study should that be the answer or answers to do good for the economy. And this should be done with public hearings and a well thought plan for follow ons, on this work to ultimately accomplish such endeavor.
The egotistical approach and rhetoric as to who gets the credit of such idea(s) should not be the case for a long hard battle will ensue only to amend or put such idea in another different perspective. And example to this was when the Article XII was placed as an initiative for 75 years extension another legislator said 80 years, then the governor said 90 years without even “battling off” the 75 years idea. Representative Hofschneider introduced the 75 years first as a resolution I believe, but up to now nothing happens cause the other two “thought their idea is the greatest.” This is a shame on our leaders and this is a prime example of a needless bureaucratic interference that put things at halt and nothing is done because most of our leaders are notorious of doing such a thing with no productivity on their end.
Nevertheless the following are areas or ways I believe that the economy may be revitalized:
1. Business tax structure of the CNMI has to be revisited. The current existing business laws and tax structure in these areas have to be updated and provide the business sectors avenues to conduct business with lesser tax to pay in the meantime. These are taxes in areas of B.G.R.T., Room Tax, and Capital Gains.
“Dave Santos Law” in Guam is one that could be emulated as one example to ease some burdens on the business community.
Moratorium of tax break of some sort such as the qualifying certificate or rebates has to be provided in the meantime should the Dave Santos Law is not granted by our leaders. This would allow businesses a break before they all shut down which definitely impacted to no or lesser revenue for the government.
It has been proven by economist globally that it is the small businesses that drives more of the economy much more than it is believed, as oppose to that of the big industry. Why is this? Just like in the CNMI there are more small businesses added altogether that infuses more money to the government than a few hotels (10 big ones only) put together. Small business are wonders of the business world your mind could ever imagine what it can do and actually putting more to the government coffers not to mention the biggest employer and trainer in the economic market.
2. Abolish Article XII of the Constitution. It will stimulate growth and improve the economic base of CNMI. It will open up revenues and employment in the construction and banking industry to include secondary markets that would be a multiplier effect because of these markets. These are areas in insurances for bonding and liability coverages and appraisals as well. Hence, the normal coverages will kick in for the long haul such as coverages for fire, typhoon, earthquake and liability as well.
Banks will provide loans for housing, housing renovation-improvements, for selling and purchasing of houses, buildings, and even for refinancing. These loans will be available for as long as is affordable both for the businesses and private individuals.
Loans will be enhanced with the acceptance for financing incorporated with the bank for Federal Home Loan Mortgage Corporation, Federal Housing Authority, Federal National Mortgage Association, Small Business Administration and Federal Agricultural Loans only to name a few.
3. One Stop Shop. The government must get out of leasing buildings and do on their own. There are government lands and buildings not being occupied such as the housing units in Garapan behind the elementary school as one to work on. It is high time that the government should decentralize and start centralizing in their own available resources. The government can bid out these lands for multiple leases after they drafted or come up with a rendition of its own development plan of that area. The complex should be established as a corporation with the government in a sense where investors will develop the area into one or any combination from a mall to a service center or convention center and the government provide tax breaks or some kind of incentives for the investors. And in this same complex the government will have its own offices to save millions of dollars in leases to private sectors-from businesses that they are now currently paying for. The investors will be the one to oversee the upkeep and maintenance of the complex or facilities and be credited for such as a return of a win-win situation by and between investors and government.
With similar idea this is also one way to revitalize La Fiesta Mall in Matanza, San Roque.
4. Impose Real Property Taxes and abolish Article X, Section 5 of the Constitution. This will generate revenue for education, infrastructure, public health, safety, energy (CUC) and telecommunication. This is going to be a controversial issue worst than Article XII but one sure way of increasing the government revenue so that infrastructure and the like be improved as a domino effect where the quality of life in the CNMI will eventually be improved as well.
Citizens with property who cannot afford to pay real estate tax and Article XII being abolished, the chances of selling or leasing the property is likely, as opposed to only trees standing on the land with no improvement and/or no revenue being generated.
Citizens must be afforded the opportunity to lease or sell their property if they cannot pay taxes at least within the first five years after the law is enacted. During this time frame these citizens should not be assessed fees for real property tax (for the first five years) whether or not their property is lease, sold or transfer of title due to a sell, lease or transfer of title as inheritance.
It is with my firm believe that should these four areas be enacted into “excellent” laws investors will flock to CNMI. That is to do business from all facets such as to buy land, building a house, hotels, or buildings, improve infrastructure or simply start small businesses that will be an invaluable economic prosperity for CNMI.
Pride and ownership is the drive or motivation of what investors look for as a lifetime commitment to self and the islands in improving its economy and that is the bottom line.
STEVE JANG
Capital Hill, Saipan
