Guam citizens overtaxed, heavily indebted

tax debt burden

On a scale of 1 to 10 , GovGuam’s fiscal health and performance scores 2.19

Guam taxpayers paid the government of Guam a total of $746.3 million, or $4,368 per capita, as of Sept. 30, 2017. During the same period, GovGuam’s long-term debt has reached $2.7 billion, which leaves every Guam citizen in debt of $15,802.

The Department of Interior’s recently released Performeter indicates that GovGuam, compared to other insular governments, imposes “a relatively high tax burden” and “high debt burden” on its citizens.

The financial analysis does not even include the fiscal 2018 period, when GovGuam raised liquefied fuel tax to 4 cents beginning January 2018, and imposed a temporary increase in business privilege tax from 4 percent to 5 percent.

“The percentage dispersion of revenue by source indicates how dependent the Government of Guam is on certain types of revenue,” states the Performeter, which rates GovGuam’s financial health and performance 2.19 on a scale of one to 10 — with one being the least favorable and 10 being the most favorable.