“Since we’re having an economic summit, I figured I could throw this proposal in,” he said in an interview. “I believe it can make the CNMI a more attractive place for investors.”
He said his proposal will lead to higher sales and excise tax rates, but lower income and corporate tax rates.
The Tax Reform and Simplification Act of 2008, or H.B. 16-205, will also provide:
• A deduction for premiums paid for the purchase of health insurance by self-employed individuals and employees whose employers do not provide, or are not responsible for, medical costs.
• Dependent and child support exemptions from taxable income.
• Housing exemption to self-employed individuals and employees whose employers are not legally responsible for, or do not provide them with, housing or a housing allowance benefit.
• Additional deductions and exemptions in determining taxable income under the flat tax that promote equity and fairness among taxpayers whose income may be similar but whose circumstances differ.
Similar flat tax proposals were discussed and introduced in the Legislature in the mid-1990s, but none became law.
