Respicio bill earmarks tax revenue to DOE

by Ken Quintanilla

Guam - Senator Rory Respicio has introduced legislation that would earmark any additional tax revenue to the Department of Education that the Government of Guam would collect this year as a result of the recent fiscal cliff deal reached by Congress and President Barack Obama. Respicio explained that under the terms of the deal, the Bush tax cuts were allowed to expire for incomes earning more than $400,000 a year with a resulting increase in revenues for the federal government.

Under the bill, Rev & Tax director John Camacho would determine the increase in revenue. He said, "It's going to show a slight increase in revenues because definitely what they're saying that people reporting $400,000 or above are taxed at a higher rate, but as far as t he amount, I don't think it's going to be something great that a lot of people say in the millions of dollars."

Because Guam's tax code mirrors the federal tax code, the tax increase would apply to here at home, expected to bring in revenue to GovGuam.