Guam senators supported a budget amendment rolling back the business privilege tax to 4% Wednesday afternoon.
The governor’s budget proposal maintained the BPT at 5%, and the substitute bill put forward by the legislature lowered the rate to 4.5%.
Sen. Shawn Gumataotao, who introduced the amendment, said lawmakers should not prioritize growing the government of Guam rather than helping the island’s struggling economy.
“While the government of Guam might be flush with cash, it has been a completely different story for our businesses, entrepreneurs who have sacrificed so very much for believing and investing in Guam, because you know what, they're still doing that today. It's been a long time coming,” Gumataotao said.
On Wednesday, senators supported Gumataotao’s amendment by a vote of 8-7.
Gumataotao released a statement criticizing the government’s spending priorities.
“Clearly, this government had the money, but decision makers for many years have failed to equip our employees with the tools - the ambulances, police patrol cars, hospital beds and linens, etc. - which our agencies need in order to deliver the critical public services that our people pay for and expect,” he said.
He said by adjusting the BPT to 4%, “the budget bill brings our island one step closer to truly prioritizing funding for public services in education, public safety, and healthcare - and Guam’s economy.”
