TABLE 5.-Cumulative status of Federal financial assistance projects under the Office of Emergency Planning, June 30, 1965

Sources: 1964 government of Guam accountants' reports, financial statements, and 1965 government of Guam preliminary financial statements.

The Rehabilitation Act of November 1963 appropriated $45 million to aid construction of necessary public works, to develop and stimulate trade and industry, and to provide facilities for community life through projects of public works and community development. Table 6 indicates the projects underway or planned under the program. Of the total projected costs, about $29,132,800 represents loans to be repaid within 30 years at an interest rate to be determined by the Secretary of the Treasury, based on the average yield of outstanding marketable obligations of the United States of comparable maturities.

TABLE 6.-Rehabilitation act projects

NOTE. (1) Source shows $528,000 as total amount, but components are listed as loan, $389,000, and grant, $389,000.

C. SHARED REVENUES

The Organic Act of Guam provides that customs duties, passport, immigration and naturalization fees, Federal income taxes derived from Guam, and the proceeds of all taxes collected under the internal revenue laws of the United States are to be covered into the treasury of Guam. Because Guam currently has free-port status, there are no revenues from customs duties. Another revenue not being realized is from internal revenue taxes levied on Guam products which enter the United States. About $20,000 per year is received from passport and

immigration fees.

By far, the most important shared revenue is the income tax, with over half of Guam's total revenue realized from this source. It includes all Federal income taxes collected by the government of Guam from residents and those collected by the U.S. Government from Federal employees (including the military) on Guam. Income of Guamanians from U.S. sources is taxed according to nonresident alien rules, and the tax does not revert to the treasury of Guam. A tax credit against income derived in Guam is allowed. However, there is a possibility that this will change to allow taxes from both Guam and U.S. sources to be collected by the government of Guam.

BIBLIOGRAPHY

Advisory Commission on Intergovernmental Relations, The Role of Equalization in Federal Grants, Report A-19, January 1964.

Grants-in-Aid Programs Enacted by the 2d Session of the 88th Congress, Supplement to Report A-19, March 1965.

Periodic Congressional Reassessment of Federal Grants-in-Aid to State and Local Governments, Report A-8, June 1961.

Committee on Government Operations, U.S. Senate, Catalog of Federal Aids to State and Local Governments, April 15, 1964.

Catalog of Federal Aids to State and Local Governments, Supplement, January 4, 1965.

Sophie R. Dales, "Federal Grants, 1963-64," Social Security Bulletin, June 1965, Vol. 28, No. 6, pp. 3-13.

Government of Guam, Audited Financial Statements, 1962, 1963, 1964.

Preliminary Financial Statement, 1965.

Tudor Engineering Co., Study of Apra Harbor, January 1964.

U.S. Bureau of the Census, Statistical Abstract of the United States, 1965, 86th edition, Washington, D.C., 1965.

U.S. Department of Commerce, Area Redevelopment Administration, Handbook of Federal Aids to Communities, 1963 edition.

U.S. Department of Health, Education, and Welfare, Grants-in-Aid and Other Financial Assistance Programs, 1964-65 edition.

U.S. Treasury Department, Annual Report, Fiscal Year 1964.

The Budget of the United States Government, Fiscal Year 1966.

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