San Nicolas, in a report to the people of Tinian, said the CNMI government should instead ease up on policies that hinder development and the entry of new investors, raise taxes or impose fees on foreign remittances.
“In time of a recessed or depressed economy the simplest solution is to stimulate the economy nor depress it even further…by firing people,” the mayor said.
The CNMI, he added, has to learn from the federal government which “implemented programs aimed at jumpstarting an already recessed economy.”
“We need to keep people working so that they continue to have disposable income to spend,” San Nicolas said. “This, in turn, will help prime the local economic wheel and generate more government revenues. Firing is not the solution, generating more revenue is.”
The CNMI government is the main employer of local residents.
“Entice new development money to come in by easing up on policies that hinder development for example, or increase the tax a little and do away with the rebates for now,” San Nicolas said.
The government should also consider taxing “the people who send money out of the commonwealth,” referring to the guest workers, who comprise the bulk of the CNMI private sector’s workforce.
“I know that politically, taxes are very unpopular but I know for sure that firing is more unpopular,” San Nicolas said.
He noted that municipal employees are often the target of furloughs, layoffs and cut in hours.
“The truth of the matter is, these employees are greatly needed by the municipal government more so now than ever,” he said. “We are in the midst of unprecedented development both in the private sector and in the government side…municipal employees play a major role in helping the municipality move forward in the development of local projects and capital improvement projects all of which will help spur economic growth in the CNMI.”
