Hagåtña, Guam – As Governor Lou Leon Guerrero prepares to announce a Team Guam Plan to assist the business sector in coping with the impacts of the 2019 Novel Coronavirus (COVID-19), added help could be on the way for private sector workers.
On a recent call with Senior White House officials, Governor Leon Guerrero expressed support of any measure that aims to assist middle class workers.
“Working People and the businesses that employ them need help now. As we prepare to roll out our local economic response, I am pleased to learn that the White House is actively considering a payroll tax cut,” said Governor Leon Guerrero.
In 2009, then-President Obama’s economic stimulus package included a payroll tax cut that reduced Social Security taxes by 2% for individuals for a total of $400 for individuals and $800 for families. Governor Leon Guerrero hopes that any tax cut package includes a similar payroll tax cut and is supportive of that policy.
Social Security taxes are paid by both the employee and the employer at a rate of 6.2% each, but on Guam, these taxes are paid to the United States government, and not to the government of Guam. Therefore, there is no specific impact to government revenues and a payroll tax cut would be a direct benefit to working families on Guam.
“In the coming days, I will be announcing a Team Guam Plan to aid our business community. A payroll tax cut would be a welcomed addition. As Congress considers a targeted relief package, I hope it will seriously consider an economic stimulus in the short term,” noted Governor Leon Guerrero.