A bill to lower Guam's Business Privilege Tax by one percent, Bill No. 11 is officially on the table, as it has its public hearing today. 

But with looming federal funding cuts, there’s been mixed reaction over whether now is the right time to reduce revenue.

Senator Shawn Gumataotao, the bill’s author, says support has poured in from business owners and taxpayers who feel overburdened and under-supported.

He pointed to billion-dollar budgets and recent pay raises as signs the government is growing, while small businesses continue to struggle.

But fiscal managers say the impact could be serious. 

Lester Carlson, Director of Bureau of Budget and Management Research, says cutting the BPT would slash $81.9 million from projected revenue, affecting hospital care, school repairs, and public safety programs.

Department of Administration Director Edward Birn urges lawmakers to not “take risks unnecessarily,” warning that reducing public funding now would halt progress on long-overdue infrastructure projects.

Marie Lizama, Department of Revenue and Tax Director, adds that existing tax exemptions already cost the government $184M in FY 2023 and Bill 11 could deepen that loss.

After more than four hours, the committee on finance and government operations placed the hearing on indefinite recess, leaving the business community on the edge of their seats.

With the legislature experiencing technical difficulties with uploading part 1  of today's hearing, Nevaeh will be back with more from Bill 11's public hearing tomorrow on Primetime.