Senate committee recesses hearing on bill to cut Guam business-privilege tax after hours of split testimony

The Senate Committee on General Government Operations and Appropriations recessed its public hearing on Bridal 11, a proposal to reduce the Business Privilege Tax (BPT) headline rate from 5% to 4%, after several hours of testimony from business owners, industry representatives and policy analysts and with no formal vote taken.

Supporters of the rollback, including small-business owners and representatives of the business community, said the 1 percentage-point cut would be used to retain and recruit employees and to invest in businesses. “I am here to support the Chamber of Commerce,” Ronald Young said, identifying himself as representing the Chinese Chamber of Commerce. “One hundred percent of that 1% is going to go to giving our employees raises,” he added.

Opponents and independent analysts warned the rollback would reduce government revenue and could force cuts to public services. Julian Janssen, a resident testifying in his personal capacity, told senators that a 1% cut would translate to…