Senate President Arnold I. Palacios (R-Saipan) said yesterday that ending taxes on earned income tax credit for higher tax returns toward Marianas taxpayers is worth looking into.<\/p>\n
In an interview, Palacios said that Delegate Gregorio Kilili C. Sablan\u2019s (Ind-MP) suggestion to end the tax on earned income tax credit should be further studied if to be repealed entirely.<\/p>\n
\u201cIt certainly is something to look at if it is a nexus to increasing employment opportunities and incentivize residents to seek jobs,\u201d said Palacios, adding that it was a \u201cvalid proposal.\u201d<\/p>\n
\u201cWe just got to see\u2026what the impact is financially,\u201d he said, adding that the cost of it in the past was what urged the 11th Legislature to act on what is now known as Public Law 11-25, the law that imposes a 100-percent tax on any of the credit that could be refunded.<\/p>\n
\u201cI\u2019m for it in general. We just got to figure out the impact cost particularly,\u201d he said.<\/p>\n
House Speaker Rafael Demapan (R-Saipan) did not immediately respond to Saipan Tribune\u2019s request for comment.<\/p>\n
Sablan over the weekend sent a letter to both presiding officers of the 20th CNMI Legislature, requesting that they end the tax on earned income tax credit.<\/p>\n
\u201cThe estimate is $16 million would be refunded to taxpayers each year, if the Legislature repealed [P.L. 11-25],\u201d Sablan said in a statement. He added that P.L. 11-25 was not entirely legal, according to section 601 of the Marianas Covenant of the Political Union with the United States.<\/p>\n
Being part of the federal system, the earned income tax credit is also covered under section 601, which states that the federal tax system would be applied in the Marianas as well. Sablan pointed out, however, the legality of P.L. 11-25 was not the issue.<\/p>\n
Reinstatement of the earned income tax credit would do much to bring U.S. workers off the sidelines and into jobs in the Marianas,\u201d he said, adding that it could be tied into his H.R. 4869, or his legislation that extends the transitional period for the foreign worker program in the CNMI.<\/p>\n","protected":false},"excerpt":{"rendered":"
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