Senators Rule on Business Incentives and the Return of Retirees to the Workforce

During Tuesday’s Finance Committee hearing, senators approved several bills and lease agreements, including changes to the territory’s economic development tax break program and the return of retirees to the government workforce. All proposed legislation was approved and forwarded to the Rules and Judiciary Committee.

Regarding U.S. Virgin Islands statutes, “Our economic development laws need amending,” said Sen. Donna Frett-Gregory. “The rules and regulations that create the framework for our economic incentive programs throughout the territory have not been amended or updated for almost 20 years. If we are going to remain in the competitive market, we have to periodically examine our laws, rules, and regulations, and amend so that the territory can remain competitive.”

According to Frett-Gregory, amendments to the Economic Development Authority tax program will retain beneficiaries, attract new businesses, and create jobs for U.S. Virgin Islanders.

”I think we all want a vibrant economy,” said attorney Marjorie Roberts. “I think we need to constantly be assuring a couple things. One is not too many barriers to entry, clear rules, and making sure that the rules reflect the realities of technology, the realities of employment needs, and trading, and so forth.”

“Right now we are not generating any payroll taxes, and payroll taxes are not exempt under the EDC program. So owners who can pay themselves hundreds of thousands of dollars are paying themselves dividends and the territory is not benefitting from that,” said Frett-Gregory.