Demapan scores Sablan suggestion on EITC; speaker mum

A member of the House of Representatives who is running against Delegate Gregorio Kilili C. Sablan (Ind-MP) this November for the delegate seat criticized Sablan’s suggestion to end the local taxes imposed on earned income tax credit.

Rep. Angel A. Demapan (R-Saipan) said that Sablan’s suggestion last Monday came “now that [Sablan] is unable to secure federal funding for the CNMI through Congress.”

Sablan did not immediately respond to requests to Saipan Tribune’s request for comments.

“[Sablan] is proposing to increase the obligations to the limited resources of the CNMI at a time when the Legislature and the [Torres] administration are making greater efforts to pay down years of accumulated government obligations to land compensation, CUC bills, and retirement benefits,” said Demapan.

Sablan had suggested that the CNMI Legislature repeal Public Law 11-25, the law that imposes a 100- percent tax on credit possibly refunded to families eligible for the earned income tax credit or EITC. Sablan sent a letter to both House Speaker Rafael Demapan (R-Saipan) and Senate President Arnold I. Palacios (R-Saipan) suggesting to repeal P.L. 11-25 over the weekend.

Demapan said Sablan’s difficulty in passing legislation through Congress even when “the Obama administration supported the bill” is another “example of the CNMI’s diminished representation in Congress.”

While Palacios told Saipan Tribune last Monday that Sablan’s suggestion was “worth looking into,” Demapan has yet to respond.

“It certainly is something to look at if it is a nexus to increasing employment opportunities and incentivize residents to seek jobs,” Palacios had said. He added that it was a “valid proposal” once the financial impact tono the CNMI is measured.

“…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,” he said. “I’m for it in general. We just got to figure out the impact cost, particularly.”

In a press release, Sablan’s office noted that the benefit of ending the EITC tax is estimated at $16 million in tax refunds to taxpayers annually.

“With Commonwealth revenues reported to be at an all-time high, now is the time to put more money in the hands of our working families,” said Sablan in his previous statement.