San Nicolas: ‘GovGuam obligated to pay the people what they are owed’

Guam Congressman Michael San Nicolas (PNC file photo)

Congressman Michael San Nicolas has responded to Gov. Lou Leon Guerrero’s letter to him regarding Earned Income Tax Credit payments to Guam.

“While our Congressional office has brought the federal reimbursement of EITC furthest since its formal inception as a local liability in 1996, and while we have secured a 75% reimbursement for EITC in the HEROES Act currently before the Senate, the fact remains that the Government of Guam is obligated to pay the people what they are owed,” San Nicolas said.

According to the congressman, P.L. 23-74, signed into law in 1996 by former lieutenant governor Madeleine Bordallo and voted in favor of by Governor Lou Leon Guerrero who was then a senator, committed the Government of Guam to pay the EITC with the general fund.

“This is local money, not federal. (But) we will work to correct the legacy EITC liability that originated locally during the Underwood congressional era and seek federal reimbursement to correct this error in the HEROES Act. In the interim, I respectfully advise the Governor to follow the law and pay the tax refunds owed as soon as possible,” San Nicolas concluded.