Guam seeks clarity on federal remittance tax proposal

By Pacific Island Times News Staff

Acting Gov. Josh Tenorio sought clarification on whether a proposed federal remittance tax will apply to Guam.

Under the proposal advanced in the U.S. Senate, a 1 percent federal tax would be levied on money sent abroad from the United States, with no credit or exemption for U.S. citizens, legal residents, or those living in the territories.

The proposed tax, if applied to Guam, would also affect more than 5,000 foreign workers on Guam.

That means a woman born in Manila, working legally on Guam, would be taxed simply for sending money to help her elderly mother pay for medical expenses or buy food to survive. 

“This tax doesn’t target wealth or excess—it targets love, responsibility, and sacrifice,” Tenorio said, describing the proposed tax as “unfair and discriminatory.”

. “Sending money to help family survive should never be treated like a sin or a loophole. And yet, this proposal taxes people for doing exactly that.”

While the percentage may appear minimal, Tenorio emphasized the broader issue of fairness, particularly for underrepresented communities like Guam, which has no vote in the House or Senate.

“History has shown that taxes imposed on those without political power tend to grow over time,” he said. “This proposal may start small, but it sets a troubling precedent.”