As the administration and the legislature continue to grapple over how to raise more revenue to meet the projected shortfall, a former senator is proposing another idea. Businessman Simon Sanchez says leaders may want to consider a tax passed in Hawaii known as a "visible gross receipts tax".
"Every business on Guam knows how to do GRT. We'd all have to learn how to do a sales tax, and that lag would create pressure on when revenues could begin to be realized. Meanwhile the visible GRT you could implement very quickly, very straightforward. And technology today allows vendors to easily add that one component on the receipt when they punch it in," said Sanchez.
"It would be easier to work with, and faster to work with, and protect the bond covenants and eliminate uncertainty" he added.
Sanchez says the remaining debate would be over how much to increase the visible GRT. He also says that a foundation will be set for a sales tax, if the government decides it wants to move away from the current hidden GRT.