The House leadership is pursuing the implementation of a flat tax system in the CNMI as embodied in a legislative proposal.<\/p>\n
House Speaker Benigno R. Fitial, according to his spokesman Charles Reyes Jr., will hold a meeting this week on the issue.<\/p>\n
\u201cThis [flat tax] is continually being discussed. This is being refined, fine-tuned,\u201d said Reyes.<\/p>\n
Last year, Fitial formed a task force composed of government and private tax experts to look at the possible implementation of a flat tax system in the Commonwealth.<\/p>\n
This cam about after House Ways and Means Committee chair Norman S. Palacios introduced House Bill 14-203, which aims to reform the Commonwealth tax system by adopting a flat tax system.<\/p>\n
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.<\/p>\n
The bill also 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.<\/p>\n
The proposed measure provides exemptions for dependents and child support from taxable income and housing exemption to self-employed people.<\/p>\n
Among the initial members of the task force were Tax and Revenue director Esther Ada-Calvo, consultant Rufino Inos, Marian Aldan-Pierce of Duty Free Shop, private attorney Rex Cosack, Eloy Inos of Tan Holdings Corp., and representatives from Deloitte and Touche.<\/p>\n
The House minority, meantime, has expressed caution on the proposal, citing the lack of a study.<\/p>\n
“There’s no finding as of now. Normally, if you submit something, there should be some finding,” said minority bloc spokesman Rep. Ray Tebuteb.<\/p>\n
He said that, while the bill cites good points for an improved taxation system, “the other side must be looked at as well.”<\/p>\n
\u201cIt’s safe to go slow and make sure we see both sides because if you say it’s good, it may not be good for others,” said Tebuteb. <\/p>\n","protected":false},"excerpt":{"rendered":"
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