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HAGATNA, GUAM – As the 38th Guam Legislature continues deliberations on the Fiscal Year 2026 budget, it’s troubling that a small number of Senators still seem unaware of how most businesses actually operate. Even more concerning is their continued use of derogatory terms like “fat cats,” “evil millionaires,” and “greedy business owners.” These remarks show a fundamental misunderstanding of the hardships most private sector companies have endured—particularly over the last eight years.
Have they forgotten that in early 2020, the private sector wasn’t “asked” to shut down—they were ordered to do so? Thousands of island residents lost jobs overnight. Families scrambled to find ways to feed their children, keep the lights on, and simply survive. Federal assistance took months to arrive.
From small mom-and-pop shops to those they dismissively label “millionaires,” business owners faced gut-wrenching decisions—layoffs, pay cuts, and in too many cases, permanent closure. Those who had poured years of savings into their operations saw their investments collapse. Even as businesses pleaded for a temporary reduction of the Business Privilege Tax (BPT) to 4% during the crisis, this government refused. Meanwhile, the Government of Guam kept every employee on its payroll—offices closed, services reduced—yet now some Senators want to lecture the private sector about “paying their fair share”?
Let’s be clear: during the pandemic, the military buildup—the very industry some are now targeting for unconstitutional tax hikes—helped keep Guam’s economy afloat. It created jobs for our residents, purchased supplies from island vendors, and, yes, paid its fair share of taxes. Those dollars literally funded the Government of Guam's payroll and public services when other revenues collapsed.
Do these Senators realize that the so-called “million-dollar contracts” do not all belong to “millionaires”? Many subcontractors are local businesses that are simply working hard and employing our people. A $100 million prime contract doesn’t mean $100 million in profit; it means dozens of local subcontractors getting work. Yet one Senator has proposed double taxation on these same subcontractors and
increasing their tax rates.
Let’s put it in perspective: winning a $10 million federal contract does not mean walking away with $10 million. After covering payroll, taxes (yes, there are other taxes in addition to the BPT), utilities, materials, equipment, insurance, and operating costs, a company would be fortunate to net one percent—about $100,000. The same proportional reality applies whether it’s a $100 million government project or a small business built on a $100,000 investment.
Now imagine being a restaurant owner who invested $5 to $10 million in a national franchise—only to close permanently in the pandemic. Or a salon owner who invested their life savings into a small shop, unable to service a single customer for months. Or a coffee shop owner investing $200,000 with no way to open their doors. These people are not villains; they are community members who have already paid their fair share, often while receiving minimal government support.
Reducing the BPT is not about greed—it’s about relief. It’s about finally giving businesses breathing room after years of paying high taxes despite struggling with crumbling infrastructure, deteriorating hospitals, increased crime, and cumbersome regulations. Over the last three to four years, while GMH continued to deteriorate, Simon Sanchez High School decayed, and public safety needs went unmet, the government had a 5% BPT in place. What exactly did these Senators do with that revenue?
The private sector is not the enemy. It is the island’s job creator and economic driver. Tourism is struggling, yet our hotels do everything possible to keep staff employed. They are not “greedy millionaires”—they are employers, taxpayers, and fellow citizens. More jobs mean more tax revenue, not less. The BPT is just one of many taxes the Government of Guam collects. When employment rises, so do all other streams of tax revenue: gross receipts, income tax, payroll tax, and more.
Proposals to “give breaks” only to the smallest businesses while raising taxes on others, including family-owned companies, are not acts of fairness. They are political theater, disingenuous amendments meant to pit businesses against each other. Stop offering false hope unless you have the votes to pass something real. The people see through it.
We urge this Legislature to stop pitting the private sector against the public sector. The government serves all of Guam—and the business community is not the enemy. For our island to thrive, the public and private sectors must work together as balanced partners. And yes—both must do their fair share. Si Yu'os Ma'ase.
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August 15, 2025
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