Where the money is
THE governor says “this is the right time” to tax construction activities because, well, there are several happening right now. This reminds us of “Slick” Willie Sutton’s response when asked why he robbed banks. “Because,” he said, “that’s where the money is.”
Now many of us may believe that taxes are paid by those who had the misfortune of being required to foot the bill, in this case, construction companies. But they, in turn, can and most likely will, pass on the additional costs to their customers. And for what? So that this cash-strapped government can project “additional revenue,” and spend it before it is even collected (if at all).
Over four years ago, the governor, who was the lt. governor at the time, said it was high time to reduce government costs. It still is. In fact, this is the right time for the government to “live within its means,” as the governor would put it.
If you can’t afford a bloated government, then you can’t have it.
Where your tax money goes
BUSINESSMAN Joe Ayuyu, who has resigned from the CPA board, says the ports authority has “many good employees, but there are also many who need either to be guided or trained about their responsibilities. The very common issue is attendance. It’s a big problem especially when you’re serving the people.” Management, he added, is “very lenient,” and there is “no accountability.” Worse, despite CPA’s financial problems, he said some board members wanted to hire more employees. “That is the style in the government — instead of cutting the cost, no, they want their friends to come in. It is ridiculous,” Ayuyu said. These attitudes, he added, “are rooted already and [it’s] very hard to break it….”
Anyone who has to deal with any CNMI government agency or office knows this is true. “Since ever since,” as they say.
Unlike businesses, government is run by politicians. Businesspersons must keep their companies afloat and pay their obligations regularly and on time. Politicians, for their part, can simply say what voters want to hear while taking other people’s money and spending it on the same voters.
The current leadership, in any case, wants us to pay more in taxes and fees so that it can maintain business as usual for this highly inefficient, alarmingly extravagant government, which has so many redundant agencies and programs.
No means no.
Transparency they say
KYODO News of Japan quoted the governor as saying, “There’s no way…, I believe, that the U.S government will allow a direct flight from (mainland) China under the temperature we’re in.” And yet various other jurisdictions in the U.S., including Hawaii, which has a huge military presence, are promoting themselves in China as tourist destinations. The U.S. Department of Commerce, no less, has taken the lead to “strengthen and expand travel and tourism and people-to-people exchanges” between the U.S. and China.
So what is the basis for the governor’s “pivot” policy? Did someone in the federal government or the military “advise” him to abandon the CNMI’s second largest tourism market? What — or who — made him believe that doing so would result in enough federal and/or military assistance to offset the loss of tens of thousands of potential tourists?
These and many other questions could have been raised and discussed openly if only the governor — in the name of transparency — consulted with the public first before implementing his pivot policy. But he didn’t.
And what is the result so far of shunning what used to be 40% of the CNMI’s tourism market? Let’s quote the governor again: “We’ve had to make drastic sacrifices in government operations and public services. People are leaving the Commonwealth because of the depressed state of the economy right now, because of the major impact of losing close to half-a-billion to a billion dollars’ worth of economic activities.”
And what is his “solution” to the sorry state of the government finances caused by a sputtering economy?
Higher taxes.
In other words, higher costs and higher prices for everyone, and more downsizing and more job losses — but preferably in the private sector only.
