Guam – Hoping to jumpstart Guam’s economic growth, lawmakers passed Bill 1-35, a legislation introduced by Senator Régine Biscoe Lee that amends current tax benefits offered to local small businesses.
Senators James Moylan and Joe San Agustin and Speaker Tina Muna Barnes co-sponsored the bill. It expands the Dave Santos Act by providing a second benefit to small businesses.
Under the amended benefits, businesses who are making more than $50,000 but less than $250,000 a year would be taxed a Business Privilege Tax rate of 3 percent instead of 5 percent on their first $100,000 earned.
The targeted small and micro-business tax cut proposed in Bill 1-35 serves as an investment in local small businesses and Guam’s economy, as the tax cut will boost demand by increasing after-tax cash flow for businesses. Lee said, “By helping small businesses breathe a little easier and grow in economic confidence, we as an island can hope to see better days ahead.”