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US Congress eyes passage of Guam’s investment law
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Posted on Mar 26 2001
Congressman Robert A. Underwood’s Guam Foreign Investment Equity Act, HR 309, will be one of only five bills to be considered by the House Resources Committee on March 28.
The Guam Foreign Investment Equity Act, which was passed by the House in the 106th Congress, would allow foreign investors to be taxed in Guam at the same advantageous treaty-negotiated rate as the states. Guam’s tax rate for foreign investment is currently fixed by law at 30 percent, while the 50 states enjoy lower rates as a result of US treaty agreements with foreign countries.
“Obviously, if you’re an investor looking to invest in the U.S., you’re likely to bypass Guam in favor of an area with a lower tax rate,” Congressman Underwood said.
“Seventy-five percent of the investment capital that comes into Guam is from foreign sources, but our fixed 30 percent rate remains a real drawback.”
Congressman Underwood said the bill, if it becomes law, will level the field for Guam and provide a sorely needed incentive to help address Guam’s economic problems.
“More importantly, it will be of immediate as well as of long-term benefit to our economy,” he said.
The Guam Chamber of Commerce, which continues to support the bill, is working on a resolution to submit to Resources Chairman Jim Hansen (R-Utah) and Ranking Member Nick Rahall (D-West Virginia). Speaker Antonio Unpingco has informed the Congressman that he also will send favorable testimony in behalf of the Guam Legislature.
