I am writing to suggest that the government of Guam use some of the federal coronavirus aid money to immediately fund the 2020 tax refunds for residents of Guam.
Typically, the Department of Revenue and Taxes issues tax refunds on an ongoing basis as enough money goes into the coffers, as I understand it. When enough tax money arrives for a new round of refund checks, Rev & Tax issues refunds to Guam taxpayers. Then Rev & Tax waits a short time, maybe a few weeks, for more revenue to come in, and then issues another round of refunds. This process continues throughout the year.
However, this year Rev & Tax doesn’t have to wait. A fraction of Guam’s aid program will provide enough money to immediately fund all of the 2020 tax refunds.
If Rev & Tax did this, the residents of Guam would receive a large one-time payment which is, after all, their own money. Repayments in people’s hands would give a much needed jerk to Guam’s struggling economy, coupled with the individual stimulus checks that aid will also provide. It would also increase tax revenue, as companies with a more secure base pay an increased amount of ordinary taxes.
Then Rev & Tax could save the revenue generated throughout this year that it intended to use for 2020 refunds and save it for next year to immediately fund 2021 refunds. And Rev & Tax could continue this pattern indefinitely.
Please consider it.
Steven Haderlie is a resident of Maite.