GovGuam posts deficit as tax hikes not enough
The GovGuam general fund ended fiscal year 2018 with a $10.4 million deficit, despite the implementation of an increase in the business privilege tax, the Office of Public Accountability reported in its latest audit.
In FY 2018, the general fund’s total revenue was $688 million, a $21 million or 3 percent decrease from FY 2017.
OPA attributed the decrease primarily to the implementation of the 2018 Trump Tax Cuts and Jobs Act, which reduced GovGuam’s income tax collections by $36.6 million.
The prior year, before the Trump tax cuts came into effect, the GovGuam general fund posted a surplus of $32.7 million.
The general fund’s cumulative deficit stands at $83.4 million as of FY 2018.
Read more: https://pacificnewscenter.com/govguam-general-fund-in-deficit-revenues-down-due-to-trump-tax-cuts/