Amata delighted U.S. House passed her proposal: Wage Credit Tax Benefit for American Samoa
July 31, 2006

Amata Aumua expressed delight that the U.S. House of Representatives Friday passed her proposal, a wage based credit. Another political rival has accused her of taking credit for its passage but she reiterated that it was only the wage credit itself that she actively pushed with Congressional staff. "Even the incumbent Delegate could not take credit for the passage of the bill since he has no vote on the House floor."

She indicated that the U.S. Senate will take up the bill this week and is cautiously optimistic that it will get out of the Senate, although she said, "Ultimate prospects for passage of the bill in the Senate remains highly unclear. The House made this bill the vehicle for the minimum wage increase so it is very political, and its outcome not clear. That is why those with a stake in it are being quiet right now but I remain cautiously optimistic about its chances in the Senate."

Several months ago a House version to extend Section 936 for American Samoa failed to get past the Senate. The Section 936 federal tax break for the territory expired December 31, 2006.

According to Amata, instead of approving 936 as proposed by the Delegate, the House ended up taking her suggested solution---a wage based credit under Section 30A of the Internal Revenue Code.

The House also extended the higher amounts of grants to Puerto Rico and the Virgin Islands of the tax on rum produced in foreign countries as well as the territories.

"I've talked extensively about this wage credit for the past couple of years and it was widely reported in the local media so I'm glad Eni came around to seeing it my way," she added.

"The H.R. 5970 provision refers to Section 936," Aumua continued, "because in order to get the wage credit you must be a 936 company. However, the tax benefit for American Samoa is a 30A credit, not 936."

Amata Aumua concluded by thanking our people and local leaders for their patience and persistence saying, "Ten years is a long time to wait just for a two-year extension provision but at least it gives us a little more time to put together a long term economic development strategy" and she also commended DOI and Papaliitele David Cohen in particular because "his strong support was critical to the effort."