Who gets the short end of the stick when the Governor and AG squabble?
 

by Tony Blaz - 
KUAM's Political Insider
November 15, 2004

"The short end of the stick" is an old adage which describes situations in which the recipient of the short end means he or she is on the losing end.

Nowhere else in the U.S. does there exist a situation in which all taxpayers who are entitled to the earned income tax credit actually get no credit or half the credit. In fact, the law prescribes a specific formula for all eligible recipients. For a number of years those eligible to receive the EITC did in fact receive it, until our leaders decided to eliminate it completely.

Now Lt. Governor Kaleo Moylan, his attorney, Mike Phillips, Moylan's first cousin, AG Doug Moylan, and Ben Pangelinan, the Democratic speaker and friend of Phillips, concocted this brilliant idea to pay the EITC. But there is a catch: only half of the settlement will be paid to all eligible recipients, my question then to all of our leaders is why?

Guam's tax laws mirror the IRS code, and if is this is so, then why should any taxpayer get only half the benefits they are entitled to under the federal law? This brilliant scheme concocted by aforementioned leaders comes with a price tag, Attorney Mike Phillips walks away with millions of dollars in attorney fees. Yes, my dear people of Guam, this "win/win" situation as is referred to by the authors of the settlement agreement for all the parties is win/win, but for whom? I submit to you... that this is a win situation for all the politicians involved, because they get to pat themselves on the back and toot their horns!

Attorney Mike Phillips, the champion of the working people and the downtrodden walks away with six million dollars, and that's a major win for him! Boy - I'd like to be the champion of the working people and the downtrodden.

As to all you eligible taxpayers, you get to receive only half of the tax credit not the full credit that you are entitled to. Or, in other words, the short end of the stick!    

Tony Blaz hosts "Positively Local", a radio talkshow on Isla61-AM everyday from 6-10am