Date: 2000-07-25
Speaker: GEORGE MILLER (democrat)
Chamber: H
State: California

Mr. Speaker. I rise in support of H.R. 2462the Guam Omnibus Opportunities Act--of which I am a cosponsor along with the Chairman of the Resources Committee. I recodnize and congratulate our colleague from Guam. Mr. UNDERWOOD. for his hard work and collaboration with the staff of the Committee to craft legislation which addresses some very complex issues facing the people of Guam. Some may not realize how difficult a job it is for the delegates from the territories to move legislation through the Congress and I. for one. am glad that we are considering Mr. UNDERWOODS legislation today. The Guam Omnibus Opportunities Act is legislation which. among other things. addresses two very important issues for the people of Guamthe future return of federal excess lands on Guam and the expansion of the islands economy. H.R. 2462 puts into place. a process wherein the government of Guam is given first consideration in the return of federal excess land. As chairman of the Resources Committee during the 103rd Congress. we passed legislation. authored by Mr. UNDERWOOD. which identified 3.200 acres of federal excess lands no longer needed by the federal government for return to the government of Guam to benefit the people of Guam. This was the first step in helping to address the very unique circumstances of Guams history and the federal acquisition of 1/3 of the island -after WWII for purposes of national defense. Currently. the return of excess federal land is governed by the General Service Administrations land return process which can completely prevent Guam from regaining the land. in favor of other federal interests. H.R. 2462 builds upon the success of our work during the 103rd Congress and establishes a process in which federal property no longer necessary for the continuing operations of the defense of our nation is returned to the government of Guam for uses consistent with benefitting the islands community. H.R. 2462 also contains a novel approach to increase investment into Guam by allowing the government to match the withholding tax rates of foreign investors to equal the same rate offered in U.S. treaties for foreign investors doing business in the 50 states. Guams U.S. "mirror image" tax system was instituted with the passage of its organic act in 1950. The Internal Revenue Code requires a withholding tax rate of 30 percent on foreign investors with the exception of withholding tax rates negotiated in U.S. treaties with foreign nations. These rates are often lowered to encourage foreign investment into the United States. It is often the case. however. that the definition of the United States does .not include Guam or the other U.S. territories. The exclusion of the territories. has for better or worse. penalized Guam in this instance since the majority of their private sector development has come from foreign sources. Amending Guams Organic Act to equal the withholding tax rate under U.S. treaties will boost their attraction to foreign investors and benefit the islands longterm private sector diversification. I am mindful that over the past several years. the economy of Guam has spiraled downwards due to decreased military presence and the slumping economies in Asia. I am happy that we are attempting to address these issues in terms of making future excess federal land available to the island government for public benefit uses and the lifting of restrictive taxes on foreign investors. I thank Mr. UNDERWOOD again for his legislation and urge my colleagues to support H.R. 2462the Guam Omnibus Opportunities Act.