Rep. Eliceo D. Cabrera, R-Saipan, said House Bill 17-40 which he authored has to be sent back to the House Ways and Means Committee which will then allow the public to comment on it.
He said the committee has to hold public hearings to hear from the people, especially from the business sector.
H.B. 17-40 seeks to increase business license fees.
The Senate, in passing H.B. 17-40, amended it to reduce the proposed fee increases by half, reduce the tax rebate rates, increase the “sin” taxes and impose a “sweet” tax.
Cabrera said these are significant changes that need to be reviewed by the House and the public.
He does not want the tax hikes and rebate cut included in the bill.
The Saipan Chamber of Commerce opposes the original H.B. 17-40 as well as the version passed by the Senate.
Chamber executive director Kyle L. Calabrese urged lawmakers “not to undertake such an all encompassing overhaul of the commonwealth’s tax structure without first studying the effects of such measures.”
He said the business community is dismayed by the lack of financial analysis regarding these measures.
The proposed rebate cut, he added, means a tax increase that ranges from 11 percent to 40 percent depending on an individual’s income bracket.
It will also increase income tax rates and withholding tax rates for companies and individuals, he said.
The bill will take away tax advantages for business, Calabrese said, and this will discourage investments and decrease government revenue.
He said the chamber is urging the Legislature to make meaningful, long-term spending cuts.
“Government employers and employees are not alone in feeling the pain of budget reductions. Many, if not most, employers in the commonwealth have reduced benefits due to reduced revenues during this economic depression.
The government should enact a sustainable plan to reduce its expenditures to an amount less than or equal its revenues,” Calabrese said.
