DDC: Tax incentive will affect CNMI’s revenue collection By MARIAN A. MARAYA

Governor’s Developmental Disabilities Council Executive Director Thomas J. Camacho has cautioned the House Ways and Means Committee against passing a bill that will grant tax credits to employers who will hire individuals with disabilities.

In a letter to Rep. Antonio Camacho, the GDDC official warned that the establishment of an incentive program would dent the government’s ability to raise revenues.

To cover anticipated losses, the DD council official suggested that the Legislature identify new funding sources to back the legislation.

A similar act applied in the states was abolished by the U.S. Congress several years back as a result of the sharp drop in revenue collection, Mr. Camacho told the committee.

“They moved to terminate it because they were experiencing revenue shortfalls since they failed to identify alternative funding sources to make up for the loss,” he explained.

Mr. Camacho also cited that while the bill is not totally designed to be an equal employment opportunity or affirmative action law, it has good intentions and merits.

The DD council chief, who reviewed the legislation with an agency representative from the University of Affiliated Program, Northern Marianas College, requested that the leadership amend the act’s title from “Hire the Handicapped Tax Incentive Act of 2000” to “Recruitment and Employment of Qualified Persons with Disabilities Act of 2000.”

“The term “handicapped” is no longer accepted by people with disabilities and advocates,” said Mr. Camacho.

The politically correct term is the “people first language” used to identify a person who has a disability if it’s part of conversation or provision, according to him.

“It’s highly essential that we sensitize the words we use about people and identify them as people. It’s highly essential that we sensitize the words we use about people and identify them as people first then disability second if the issue is about disability,” he added.

Furthermore, the council also suggested that the bill include a language that requires businesses to provide reasonable accommodations to employees hired under the program essential for employees with disabilities to perform the essential functions of their job.

Office of Vocational Rehabilitation Director Tee Abraham has also aired concerns regarding the legislation, citing it could lead to abuse of the proposed tax incentives.

Ms. Abraham expressed fears the legislation which seeks to provide an employer tax deduction from their tax or gross revenue could be exploited.

“We don’t advise for a 100 percent reimbursement of what the employers spend on their employees with disabilities because that could be exploited. It may come to a point where they hire people with disabilities not really intending to help them but just for the incentive,” she warned.

Ms. Abraham also shared Mr. Camacho’s concerns on the potential revenues the local government may lose through the granting of tax incentives.