Guam – Guam Federation of Teachers President Matt Rector doesn’t believe that layoffs are the answer to Gov Guam’s financial crisis. Instead he believes the answer lies in removing unneeded tax breaks that Gov Guam gives corporations and big businesses.
Rector says it’s the same debate that recently went on in U.S. congress the debate about cutting services for the people who need it most to protect the tax breaks for those with the most money.
Rector is referring to Gov Guam’s qualifying certificate or Q.C. program. A program that was instituted decades ago to entice companies to invest in Guam by offering major tax breaks. The Q.C. program was used to start-up the tourism industry and had an expiration date, however many hotels still have these qualifying certificates today.
“We can’t continue to subsidize the profits of these companies while at the same time making our own people suffer,” said Rector adding, “If you take away the work from these people what’s gonna happen? It’s gonna destroy our economy when you think about it. I mean when you look at the paper Thursday before a Gov Guam payday it’s that thick. Why? Because Gov Guam workers spend in our economy, that money circulates in our economy and grows wealth for everybody.”
Rector says extending these tax breaks to these companies is costing the government of Guam a lot of money in both direct revenues from taxes and lost revenues from money that these corporations send off-island.