By Adam Leon Guerrero for Just Thinking Aloud, Kandit News & Views
In 2018, Guam raised the Business Privilege Tax from 4% to 5%. We were told it was temporary — just enough to get us through tough times.
Seven years later, the tax is still here. Meanwhile, Guam’s budget has hit a record $1.1 billion. Government workers received a 22% raise. And this year alone, we’ve seen an $85 million revenue surplus.
Senator Shawn Gumataotao’s [BPT cutting] bill proposes a fair fix: roll the tax back to 4%. That puts $85 million back in the hands of the people who earn it — business owners, workers, families.
Some say we can’t afford it. But even without the extra 1%, revenues will remain strong. The military buildup and economic recovery will keep funds flowing.
For small businesses still recovering from the pandemic, this rollback could mean the difference between staying open or shutting down. And don’t forget: the BPT is based on gross income — even businesses losing money still pay it.
This isn’t business versus government. It’s about fairness — and keeping the private sector alive. Surpluses should spark relief for taxpayers, not expansion of spending.
The best path is a full rollback. But if lawmakers can’t agree, here’s a fair compromise:
§ Phase the BPT back down over 2–3 years
§ Start with small businesses
§ Encourage reinvestment by requiring simple transparency on how the savings are used — wages, jobs, lower prices.
§ Freeze new spending until the rollback is complete
It’s time for leaders to trust the taxpayers. Give the people their dollar back.
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Adam Leon Guerrero is a resident of Barrigada
