Trump tax plan could cost GovGuam $40 million in corporate taxes

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“I think what is the counterpart of the tax cut is how the taxpayer is actually going to utilize these extra dollars? Are they gonna actually re-invest? Is he gonna create more jobs?” – DRT Director John Camacho

Guam – During a tax commission meeting held at the legislature this morning Department of Revenue and taxation director John Camacho told Speaker B.J. Cruz that based on a rough estimate of the taxable income of all corporations on Guam and applied President Trump’s proposed 20 percent rate, GovGuam could lose between 35-40 million dollars.

However, Camacho also told lawmakers that the tax cuts could be good for the economy. “As we anticipate tax cuts obviously what’s gonna happen if this thing goes through I think what is the counterpart of the tax cut is how the taxpayer is actually going to utilize these extra dollars? Are they gonna actually re-invest? Is he gonna create more jobs?” asked Camacho. The DRT director believes that the money that corporations save on the tax cuts will help to grow the economy.