27 Dec 2007

Military influx seen as solution to Guam's huge deficit

2:11 pm on 27 December 2007

An economist says the Guam government could wipe out its 15 billion US dollar deficit through tax revenues from the US military buildup in the territory.

The Pacific Daily News reports that current military spending patterns on Guam suggest that the territory's government stands to raise tens of millions of dollars in additional income taxes from new military personnel each year.

Governor Felix Camacho has requested additional federal funding from the Defense Department to determine the economic impact on Guam of the buildup.

Chief economist Gary Hiles says an unofficial calculation suggests revenue increases of hundreds of millions of dollars per year.