Did you know that Guam has the ability to delink from the US Tax Code, and come up with it’s own simpler and more appropriate system for taxation on Guam?
Over the years the amount of tax revenue Guam collects from both corporate and personal income taxes – combined, is approximately equal to what is collected from Guam’s Gross Receipts Tax (GRT), which is paid by Guam businesses.
So what if income tax on Guam were completely eliminated… and we just doubled the Gross Receipts Tax?
Don’t you think it would stimulate Guam’s economy if it were the only place on earth that a US Citizen could live and not need to even file an income tax return?
What about foreign, US and local companies? They would not need to file or pay income taxes either, and the system would just be simple math for them, which would be very easy to understand for anyone running a business on Guam.
Virtually no ‘normal’ Guam resident should be opposed to this plan, because it would mean they and most of the people they know would never need to file or pay income taxes again.
Some small profit margin businesses on Guam might worry a bit, but realistically at most they would only need to raise their prices by the amount needed to cover the percentage that their Gross Receipts Tax would increase by. Which in the case of doubling the GRTs would only be 4%. Personally I think most of us would be willing to pay an extra 4% for things on Guam, if it meant that no one on Guam would need to file or pay income taxes.
So it would seem that the only ones who would not want such a system, would be the businesses and business owners, who currently get away with not paying any income taxes to Guam right now. If this tiny percentage of the special interest tax payers would consider the bigger picture, then they too might see how they will more than likely ultimately benefit also.
One of the other key advantages of Guam moving to using this system would be the finer local control over our own taxation, especially if the Gross Receipts Tax was also able to be adjusted up, or down, depending on the type of business license.
This simple change would immediately give the residents of Guam, a much greater degree of privacy, and would greatly reduce the amount of time and work, that the people and businesses of Guam are made to spend complying with – a mirrored image of one of the most complex and difficult to understand tax systems in the world.
So what do you think… would eliminating income tax on Guam in favor of a simple and adjustable Gross Receipts Tax be a better system for you, and for Guam?