Guam – Senator Michael San Nicolas has sent a letter to Governor Eddie Calvo asking that he direct the Guam Economic Development Authority to stop from issuing qualifying certificates or Q.C.’s that give tax breaks to industries that have existing government debt obligations.
Senator San Nicolas says that the Q.C. program is a really good program but he’s concerned that there is a Q.C. being considered for the new private hospital while there is an outstanding loan for the Guam Memorial Hospital that has a balloon payment of $8 million dollars due in 2018.
In his letter the senator states that if Q.C.’s are issued to industries such as the private hospital then the terms should include the beneficiary of the Q.C. assuming some government debt.
“I wanna make sure that if we’re going to be giving out tax breaks to the hospital I would like the hospital, the new hospital, to assume that debt so that we’re wiping that clean and we’re starting from a clean slate. Otherwise we need to be very very careful about giving out tax breaks when we have bills we need to pay with that money,” said Senator San Nicolas.
The freshman lawmaker says this will help ensure that the people’s credit is not adversely affected by any potential loss of revenue resulting from tax rebates.
READ the release from Senator San Nicolas below:
Senator San Nicolas wants to ensure that QCs do not affect government debt obligations
FOR IMMEDIATE RELEASE
April 18, 2013
Senator Michael F.Q. San Nicolas sent a letter to Governor Edward J.B. Calvo requesting that he direct the Guam Economic Development Authority to refrain from issuing Qualifying Certificates (QC) to industries that have existing government debt obligations which are backed by the full faith and credit of the people of Guam.
“I fully appreciate the QC program and how it has helped grow Guam’s economy,” said Senator San Nicolas. “However, we should not issue tax breaks if it has the potential of putting our people’s credit at risk.”
In the letter, Senator San Nicolas states that if QCs are issued in those identified industries, the terms should include the beneficiary assuming debt.
“This will help ensure that our people’s credit is not adversely affected by any potential loss of revenue resulting from the tax rebates or abatements made available through Qualifying Certificates,” wrote Senator San Nicolas.