Guam – In an effort to ensure that GovGuam is getting all it should from the Feds in compact aid, Senator Tony Ada has introduced a measure that would authorize the Department of Rev & Tax to determine the amount of Earned Income Tax Credits GovGuam has paid to FAS citizens.
Bill 72-31 seeks to put GovGuam in a better position to seek re-imbursement from the federal government for the impact FSM citizens have on the island resulting from the Compact of Free Association between the U.S. and the FAS.
In a release, Senator Ada says the aim is to get a more accurate picture of how much of the EITC has been paid to FSM citizens so that GovGuam can seek full re-imbursement for these payments from the Federal Government.
The release also states: “For years, GovGuam has paid millions of dollars to eligible taxpayers regardless of the income taxes due. Many of these payments have been made to FAS citizens and continue to be a burden on GovGuam finances.”