Moylan opposes tax on online purchases

Sen. James Moylan (PNC photo)

Senator James Moylan has expressed concerns with a recent proposal that would establish a tax for online purchases, which he says continues a recent trend of tax or fee increases that impacts the pocketbooks of island residents.

Since 2018, Moylan said the island has experienced increases in business privilege and liquid fuel taxes, proposals to increase fees to conduct business on island, and a weights and measure policy that affects the landing costs of goods at our port.

“While in theory, an online sales tax would level a playing field for local businesses that pay retail taxes, until the government displays fiscal responsibilities in their spending habits, such proposals need to be removed from the table,” Moylan said in a news release.

While Moylan does not mention his fellow senator directly, Sen. Joe S. San Agustin does have his Bill 166-35, which includes a proposal to add the United States Postal Service to the ports of entry defined under Guam’s Use Tax Law.

Some have criticized the bill, saying that the bill would increase the costs for consumers who are shopping online because the local prices on Guam are more expensive.

“During the campaign season in 2018, one of the most common concerns that was raised was that the cost of living on island is relatively too high, thus I have been and will continue to be committed to focusing on ways to address that problem,” Moylan said. “However from budget proposals that seek to increase government spending, to measures that will further impair pocket books, we encourage the public to speak louder, and ask, rather demand, that their elected officials direct policies that address the priorities of the people, and not about growing the government.”