Local Leaders concerned about American Jobs Act
On September 9, 2011 Respicio issued a letter to Bordallo expressing his concern with the potentially negative effect the American Jobs Act could have on Guam's budget.
By KUAM NewsPRESS RELEASE - Majority Leader and Federal Affairs Committee Chair, Senator Rory J. Respicio, received a response today from Congresswoman Madeleine Z. Bordallo regarding President Barack Obama's recently announced American Jobs Act. On September 9, 2011 Respicio issued a letter to Bordallo expressing his concern with the potentially negative effect the American Jobs Act could have on Guam's budget.
"While I look forward to our people benefiting individually from the American Jobs Act, which would cut their payroll taxes in half, I am very concerned about the effect that these federal income tax cuts will have on Guam" said Respicio, "This money stays in Guam and any cuts will directly affect our local revenues."
In her letter, Congresswoman Bordallo thanked Senator Respicio for raising the issue. She advised that she and her colleagues from the other territories sent a letter to the President requesting that his American Jobs Act include a "cover-over" or "hold harmless" provision to prevent the proposed tax provisions from unduly burdening the treasuries of the territories.
Bordallo added that she will be contacting Assistant Secretary for Insular Affairs Tony Babauta, to request his support for "cover-over" provisions to be added to the final version of the President American Jobs Act.
"I commend the Congresswoman for recognizing how disastrous this could be for Guam and for reacting appropriately," Respicio said. "If you combine this payroll tax cut with the huge budget cuts the Committee of 12 will be making before the end of the year, the Governments of
Guam and the other insular areas would all be in very deep fiscal trouble."