Gov. Lou Leon Guerrero announces her signing of Bill 32 into Public Law 32-5, which now legalizes recreational use of marijuana by those at least 21 years of age, with limitations. Rick Cruz/PDN


Gov. Lou Leon Guerrero campaigned claiming recent tax increases resulted from the Calvo/Tenorio administration’s failure to collect taxes due to the government of Guam.

She proclaimed her administration will collect all money owned to government of Guam and she broke that promise right out of the gate as her administration favored a tax sinner over taxpayers, with recent news stories the Department of Revenue and Taxation sees no reason to impose penalties and fines on a politically well-connected company that avoided paying more that $13 million dollars of taxes.

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With that first step toward even more financial irresponsibility than the Calvo/Tenorio administration, I fear we’re seeing the beginning of a financial meltdown countdown that will most likely end with GovGuam in a federal receivership like the government of Puerto Rico, or worse.

 After all if politically well-connected insiders can avoid paying taxes with impunity, what’s the incentive for law-abiding citizens to dutifully pay all taxes due, when due?

Since the business privilege tax increase, I have seen 30% to 100%-plus increases on the prices of goods I buy on a regular basis. For example: a one-ounce bag (a luxury buy) of peanuts jumped from 89 cents to $2.89 (a 225% increase). Insulin pen needles (a mandatory lifesaving buy) jumped from $40 to $70 (a 75% increase). There will come a time when the exodus of residents leaving Guam for areas with lower costs of living and a better quality of life turns the tax base upside down, with fewer taxpayers shouldering a larger burden.

'Forget what we said'

When that happens, what happens to those who don’t have the money, or a mainland support network to enable them to leave Guam?

The campaigns are over and our new political leaders are telling us: “Forget what we said on the campaign trail. It’s time for you to dig deep and turn the few disposable income dollars you have left in your pockets over to the government. The government’s ability to pay its bills are more important than your ability to pay yours.”

Over the past year, we saw the GovGuam budget jump from just over $700 million dollars to just under $1 billion dollars, building a $100 million dollar budget deficit in the process. Every department that has come before the Legislature so far has asked for more money, not less.

Cost of living keeps going up

The people are asking how can the cost of government and the cost of living keep going up when the wages of the people responsible for paying for everything don’t?

The administration’s lack of actions reducing government spending has pushed GovGuam to edge of the financial cliff and another bomb is about to drop. The federal government’s looking to cut budgets across the board. Considering federal funds make up more than a third of the GovGuam budget, where will GovGuam get the money to replace federal grant shortfalls?

Unfortunately for taxpayers, it’s not possible for politicians to kick the can farther down the road because, financially, we have run out of road. GovGuam is rapidly approaching the crossroads where political fantasy and financial reality will collide.

And when they do, it will be a very ugly picture.

Ken Leon-Guerrero is spokesperson of Guam Citizens for Public Accountability.

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