While local business and taxpayers continue to struggle with tax hikes passed by senators, the legislature continues to try and give tax breaks to Coretech International through a bill authored by two senators who didn't even show up to their own public hearing.

A bill that would grant a controversial qualifying certificate to Coretech is not on the latest Legislative agenda. A public hearing was held for Senator Dennis Rodriguez and Senator Joe San Agustin's Bill 363 last week - but the bill's two sponsors didn't even show up for their bill's hearing.

"I should note for the record that normally would not conduct a public hearing on a bill when the sponsor - or the cosponsor is not here," Senator Tom Ada said, looking around the hearing room for the bill's sponsors.

Rodriguez and San Agustin weren't the only ones who were AWOL at the hearing.

"I'm very disappointed in GEDA and the fact that they're not here," Senator Regine Biscoe Lee said.

GEDA had shopped the idea of a Coretech QC to Governor Eddie Calvo earlier this year, but the Governor said he would not support any new QC's, given GovGuam's fiscal crisis. The FY19 budget law gave the authority to approve QC's to the Legislature.

Bill 363 would give Coretech's captive insurance company a whopping 75% rebate on its income taxes for 20 years with an option to renew the QC for another 20 years. Coretech would only have to hire 1 employee. As part of the QC's terms, Coretech would also have to donate $50,000 a year to GEDA.

"What is the benefit to GovGuam if we do grant this QC?" Senator Espaldon asked Coretech head Eun Ho. "Government of Guam will sacrifice income taxes from the captive (company) and basically that would trigger for the captive company to be a financial extension on behalf of Guam," Coretech head Eun Ho said.

Concerned citizen Sidfrey Linsangan testified against the bill, saying the QC wouldn't provide any real benefit to the public or GovGuam. "If they are building a hotel, a hospital or investing $200 or $100 million and hire hundreds of workers that will benefit the economy, big time of course," Lingsangan said. "If it will benefit the economy it falls under the intention of the law."

Lingsangan made the point that the QC really only benefits Coretech. "They are the owner of the insurance - and they are insuring themselves," Lingsangan said.

As you may recall, senators raised the business privilege tax, tobacco taxes and land taxes to cover budget shortfalls caused by the Trump tax cuts. It is not clear why senators would raise taxes on local businesses and individuals, forcing them to bear multiple tax hikes and then try to give tax breaks to companies like Coretech. Coretech is a frequent donor to political campaigns on Guam.

The company donated $2,000 to Bill 363 sponsor Senator Rodriguez's gubernatorial campaign.