Recent business tax cuts in Guam spark political reaction

On August 15, 2025, the Republican majority in Guam voted on an amendment to the original 2026 budget bill. Senator Eulogio Shawn Gumataotao (R) proposed the amendment, which cuts the business privilege tax (BPT) from five percent to four percent. It will take effect on October 1, 2026, as a part of Guam’s 2026 budget bill. 

Gumataotao explains that the amendment “does not simply reduce the BPT from five percent to four percent.” Instead, he believes this amendment can help regain public trust.

The support for this amendment is mostly from the Republican majority, including Vice Speaker V. Anthony Ada (R) and Senators Chris Duenas (R), Shawn Gumataotao (R), Shelly Calvo (R), Jesse Lujan (R), and Sabrina Salas-Matanane (R). In total, there were 11 votes for this amendment. Thus, the chance of the governor vetoing the bill is unlikely, as the bill has more than the 10 votes needed to outweigh one. Nonetheless, there is a pressing urge from Governor Leon Guerrero’s (D) office to rethink the actions of this amendment.

Leon Guerrero does not share the same excitement about this amendment. In fact, the office expresses disappointment with the Republican majority for this vote. 

“To deny our government the necessary resources to support our growing population, while simultaneously pushing through tax cuts for the wealthiest businesses, is fiscally irresponsible and detrimental to the well-being of our community,” the governor’s official website states.

The citizens of the island are also questioning this amendment choice. The revision could heavily affect public services and local businesses.

Diana Aldon, a resident of Dededo, expresses her thoughts.

“Honestly, right now we’re already losing so many businesses, and tourism is not entering here,” she says. “The minimum wage too for businesses is $9.25; that’s so bad already, it’s not worth it anymore, and all the companies on Guam probably will shut down.”

Another citizen, Danielle De Castro, has similar ideas.

To her, this amendment is “not worth the cost to Guam’s schools, roads, and public services.”

“There’s so many small businesses here on Guam, I don’t think that’s fair at all,” De Castro says. “I noticed a lot of small businesses they’ve been closing down recently, too, so I think that’s the cause of it.”

Many Republican politicians believe this amendment can aid Guam now and in the future.  However, not everyone sees it this way. 

The political response to this amendment is clear. Predicted economic benefit is at odds with concerns about education, public resources, and small businesses.