Delegate Gregorio Kilili C. Sablan (Ind-MP) introduced legislation on Friday that would provide federal funds to cover the cost of the earned income tax credit in the Northern Mariana Islands and other U.S. insular areas. His bill, H.R. 4309, would allow taxpayers in the Northern Marianas to receive a refundable tax credit, if they have earned income in a given year.<\/p>\n
\u201cThe earned income tax credit is an important public policy,\u201d Sablan said, \u201cbecause it rewards people for working. Even if people have to work for low wages, which many people do in the Northern Marianas, it will still be worthwhile to get a job, because there will be this extra supplemental income from the government.\u201d<\/p>\n
The Commonwealth tried to provide the earned income tax credit to its people in the 1990s, but had to discontinue the program because it was too expensive for the local government.<\/p>\n
Both Guam and the Virgin Islands have an earned income tax credit program in place, which they pay for with local funds. Sablan\u2019s proposal would cover the cost with federal funds.<\/p>\n
\u201cThis would work in the same way that families in the Northern Marianas are now getting the refundable child tax credit each year,\u201d Sablan explained. \u201cTaxpayers would file their return with the Commonwealth government. Then the federal government would provide the money to cover the cost of the earned income tax credit. The Commonwealth would make the payments to individual taxpayers.\u201d<\/p>\n
Sablan modeled his legislation after two provisions in the 2009 American Recovery and Reinvestment Act. That law made federal funds available to the Commonwealth government to cover the cost of the Making Work Pay tax credit and the American Opportunity tax credit for families with children in college.<\/p>\n
\u201cOne of the big wins in the tax extenders that was passed on Friday and signed by the President was making the American Opportunity tax credit permanent,\u201d Sablan said. \u201cThe credit had been scheduled to phase out in 2017. But now families will continue to be able to claim a $2,500 tax credit each year for each of their eligible college students. That is worth $10,000 over the course of a four year undergraduate program.\u201d<\/p>\n
Changes in the federal tax code can be difficult to achieve, and H.R. 4309 could be costly. However, Sablan believes it is important to put the idea on the table for consideration.<\/p>\n
\u201cIn the event that we take up comprehensive tax reform legislation in the next several years, or some other legislative opportunity presents itself, I want to be ready,\u201d said Sablan. (Office of the Delegate) Delegate Gregorio Kilili C. Sablan (Ind-MP) introduced legislation on Friday that would provide federal funds…<\/p>\n","protected":false},"author":28,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[8804,8805,1394,67],"class_list":["post-217232","post","type-post","status-publish","format-standard","hentry","category-local-news","tag-american-opportunity","tag-making-work-pay","tag-northern-marianas","tag-people"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/217232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=217232"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/217232\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=217232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=217232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=217232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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