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Torres assures response to Kilili
Torres
The Torres administration said yesterday that Gov. Ralph DLG Torres has received Delegate Gregorio Kilili C. Sablan’s (Ind-Saipan) letter and will provide a response with the necessary data as it arrives from the CNMI Department of Finance through the Division of Revenue and Taxation.
In a statement, Torres said the relationship the CNMI has with the Internal Revenue Code as a mirror code jurisdiction is complex.
“My administration has been closely monitoring the progress of the House and Senate tax bills, particularly in whether changes to the code will help enhance the economy of the CNMI. I hope that the congressional office will work to ensure that federal policies supports law-abiding taxpayers here in the CNMI,” said the administration statement. “My office, on several occasions, has provided information and support to [Sablan] on a federal payment for the issuance of the Earned Income Tax Credit or EITC to the CNMI, which remains the most proper policy to advocate for in tax reform discussions.”
Press secretary Kevin Bautista separately said in a statement: “The EITC is a refundable tax credit that encourages people with low to moderate income to enter the labor force and reduce the need for social services.
“Federal programs, such as, the Nutrition Assistance Program, help many of our people below the poverty level in the CNMI afford basic necessities, but the income guidelines without the Earned Income Tax Credit do not incentivize recipients to take on higher paying work in our economy.
“This is why Gov. Torres brought the issue of the Earned Income Tax Credit to the 902 consultations last year as a mechanism to incentivize greater local workforce participation to meet the end of the transition period in 2019. A statutory change in Congress is needed in order to provide the CNMI with funding to implement the credit.
“Amending the apportionment of the EITC will lower the levels of poverty in the CNMI, enhance our local workforce, and help grow our economy. If we’re going to be talking about federal tax policies, the EITC is the right thing to advocate for in the interest of our low to moderate income families.” (PR)
