Governor touts tax reform as beneficial to Guam economy

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The governor will also be meeting with cabinet officials.

Guam – Governor Eddie Calvo will be working with his cabinet to assess the impact of the new tax reform law on the Guam economy.

In his weekly address, Governor Calvo said he will be meeting with GovGuam agencies, which will include the Department of Revenue and Taxation, to determine “the next steps necessary for our government to live within its means while also providing the required services to the people of Guam.”

Ahead of those meetings, however, Governor Calvo is touting the tax reform as beneficial for the Guam economy, saying “tax reforms means more people will have more money to spend.”

“With corporate taxes also reduced, we’re seeing businesses make adjustments that benefit their employees – which again will benefit the economy. Soon after President Trump signed the tax reform bill into law, businesses across the nation announced bonuses, increased wages and increased benefits and retirement program contributions. Among them is the Bank of Hawaii, which announced an increase in its minimum wage levels, from $12 an hour to $15 an hour, for employees to include those on Guam. The banking institution also gave employees end-of-year bonuses. The tax reform will likely also translate to more jobs, which again is good for the people and for economy,” the governor said in his address.

You can read the governor’s entire weekly address below:

Hafa Adai my fellow Guamanians,

Over the next few weeks, I’ll be working with my fiscal team and agency directors to discuss the impact of the latest federal tax reforms on our government and economy.

The great news is we know that tax reforms means more people will have more money to spend.

With corporate taxes also reduced, we’re seeing businesses make adjustments that benefit their employees – which again will benefit the economy. Soon after President Trump signed the tax reform bill into law, businesses across the nation announced bonuses, increased wages and increased benefits and retirement program contributions. Among them is the Bank of Hawaii, which announced an increase in its minimum wage levels, from $12 an hour to $15 an hour, for employees to include those on Guam. The banking institution also gave employees end-of-year bonuses.

The tax reform will likely also translate to more jobs, which again is good for the people and for economy.

But with any change, there’s going to be a period of adjustment and that’s what we’ll be working to address over the next few weeks. The Department of Revenue and Taxation was following the tax reform bill as it was introduced then amended throughout the legislative process. They now are calculating the impact of reduced tax collections to our government.

I’ll be calling on agency directors to discuss the impacts and the next steps necessary for our government to live within its means while also providing the required services to the people of Guam.

Un dangkalu na si Yu’os ma’ase and God bless you all!