Guam – Senator Mike San Nicolas believes Guam can take advantage of the Trump tax law and a 1977 ninth circuit court of appeals ruling to bring in billions of dollars into Guam.
The Trump tax cuts or the federal tax cuts and jobs act was passed in part with the hopes of enticing hundreds of American companies to repatriate their money back into the U.S. to take advantage of the lower tax rates. In 1977 the ninth circuit court of appeals ruled that Guam had a right to rebate federal taxes because the U.S. Congress never nullified a Guam law passed in 1965 that allows GovGuam to rebate federal taxes including corporate income taxes.
Senator San Nicolas has introduced bill 264 to create a tax rebate of up to 75% on repatriated profits “provided that the taxes on those profits are passed through and paid to the Territory of Guam.”
San Nicolas says this would attract American companies to repatriate their money being held in foreign countries through Guam where they could take advantage of the Trump tax cuts as well as Guam’s tax rebates. San Nicolas says that according to some reports there is $925 billion in cash held as overseas profits by 50 U.S. corporations representing $35.8 billion in potential tax dollars and if Guam could get just get one percent of that we would get $358 million in taxes.
“Even just one company taking advantage of this program will rescue our dire financial position.”