LETTER: 5% BPT only for Military Contractors Raises Constitutional, Policy Issues

LETTER: 5% BPT only for military contractors raises constitutional, policy issues

The Guam Chamber of Commerce continues to advocate strongly for the passage of Bill 11-38 as originally drafted, and urges senators to allow the legislation to move through its natural course without amendments.

Imposing higher tax on defense contractors may spawn legal challenges, Guam Chamber of Commerce warns

“Singling out federal prime contractors for higher taxation could be construed as placing a burden on the federal government’s ability to contract freely and efficiently, especially when tax costs are incorporated into bid pricing and ultimately passed on to the federal government,” the chamber said.