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House leadership pushes for flat tax system
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Posted on Nov 08 2004
The House leadership has formed a task force to look at the possible implementation of a flat tax system in the CNMI.
House Speaker Benigno R. Fitial, together with members of the majority, held a closed-door meeting yesterday with the Tax and Revenue officials, led by director Esther Ada-Calvo, consultant Rufino Inos, and private sector representatives to discuss the matter. They included Marian Aldan-Pierce of Duty Free Shop, private attorney Rex Cosack, Eloy Inos of Tan Holdings Corp., and representatives from Deloitte and Touche.
“It’s a public-private sector task force to look into a meaningful tax reform legislation that aims to promote investment and expand the economy,” said House leadership spokesman Charles Reyes Jr.
The newly formed task force is specifically tasked to review and comment on House Bill 14-203 or the proposed Tax Reform and Simplification Act.
The bill aims to “simplify” the tax system and repeal wage and salary tax and earnings tax by enacting a Commonwealth flat tax of 10 percent based on total income from sources within the CNMI.
The bill, introduced by House Ways and Means Committee chair Rep. Norman S. Palacios, aims to require a deduction for all premiums paid for the purchase of health insurance by self-employed individuals and employees whose employers do not provide, or are not responsible for medical costs.
The proposed measure also provides exemptions for dependent and child support from taxable income and housing exemption to self-employed people.
Rep. Justo Quitugua said the bill generally aims “to ensure fairness for all taxpayers.”
Fitial initially pushed for a flat tax during the 12th Legislature.
