Guam receives $56.1M EITC fund
By Pacific Island Times News Staff
Guam has received $56.1 million in earned income tax credit (EITC) reimbursement from the U.S. Treasury following the federal approval of the Department of Revenue & Taxation EITC Implementation Plan of 2021.
“For years, previous administrations tried to fund this federal mandate. After relentless efforts and working with White House officials and Congress, we have succeeded," Gov. Lou Leon Gurrero said.
EITC, a benefit for working people with low-to-moderate income, applies on Guam but for many years the local treasury has been shouldering the federal mandate.
The American Rescue Plan Act of 2021 provides that Guam would get a 100 percent cost reimbursement from the federal government for EITC obligations to the government of Guam beginning in 2021 and for all following tax years.
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Congress has now authorized funds for all U.S. jurisdictions.
"But that’s only the beginning of the work. The local workers have to do all the hard work in creating programs, understanding the federal guidelines, and actually distributing funds,” the governor said.
"We are deeply humbled to see Guam realize the receipt of these EITC revenues as a result of actual law passed in Congress, and quietly proud to have been able to work on this for our island and people," said Congressman Michael San Nicolas. "We are further highly satisfied that our efforts to ensure federally that these monies first go to the payment of tax refunds for our people was upheld by the U.S. Treasury, preventing politician agendas from getting in the way of us finally bringing to a close the sad history of tax refund delays that began 20 years ago," he added.
"It's a firm commitment to delivering actual outcomes for our people, and an unwavering discipline to prevent repeating the mistakes of the past, that must define our expectations of public service now and into the future," San Nicolas said.