Crain

This is an appeal from a judgment dismissing an action by appellants Crain and Phelan against the Government of Guam, the sole defendant, for a declaratory judgment of their rights, and those of other Guamanians similarly situated, under Section 31 of the Organic Act of Guam, 48 U.S.C.A. § 1421i, providing that: “The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in Guam.”

The district court’s grounds for the dismissal are that Guam has sovereign immunity from such a suit against it which immunity it has not waived and that the suit is with respect to federal taxes and thus expressly barred by the Declaratory Judgments Act, 28 U.S.C. § 2201 .

Appellants’ complaint alleges that the government of Guam has asserted “the right to collect an income tax” and has published notices and claims with respect to alleged income tax procedures and payments due to the government of Guam. The complaint sought a declaration that, among other things, the statute means: (1) That the income tax laws of the United States are not repealed or suspended by the provisions of the Organic Act of Guam; and (2) That…