Amata explains why she took up the cause for the wage credit for American Samoa
August 01, 2006

Back in 2004 when I was a Congressional Majority Leadership Staffer, I realized the same bipartisan consensus that led to repeal and phase out of Section 936 made extension of 936 for American Samoa highly unlikely. I found absolutely no serious support for 936 as a real solution for American Samoa among GOP or Democratic staff, but I did find a desire to help American Samoa if there was an alternative. I just could not imagine why our Delegate staked so much on a long shot, but in a bipartisan spirit I was as supportive as I could be. But unlike our Delegate, I began to investigate alternatives.

We've all known 936 was going down the tubes for a long time because it was seen as corporate welfare , so I suggested a provision for American Samoa linked to real wages and real jobs instead of corporate profits. Our Delegate preferred to give the corporations tax breaks on the profits they send back to the mainland, I preferred a break based on wages they pay to workers who spend in the local economy.

I read scholarly studies on 936 and 30A going back many years, it is not a secret, it is a public law applicable to Puerto Rico, so our Delegate does not have intellectual property rights to it. Our Delegate did not come up with idea, he didn t even bring the idea forward. That happened when the staff listened to other voices, including mine. I visited with a lot of staff members and actively pushed 30A, because I was afraid our Delegate would come up empty handed, and he would have if he had stuck with 936.

This wage credit solution was not a last minute idea for me, but it was for the Delegate form American Samoa. For example, I was quoted in the Samoa News and The Samoa Post on Nov. 17, 2005 (see article below), Nov. 23, 2005 and December 12, 2005 talking about Section 30A but I've researched this for years. Section 936 expired December 31, 2005.

(BEGIN QUOTE): Paragraph 8: "Aumua Amata said that instead Faleomavaega should have asked for a GAO or the Joint Committee on Tax study to help American Samoa formulate an alternative to Section 936 once it was rejected by Congress. Instead of copying measures adopted in the past for other jurisdictions, we can and should have developed options to meet the unique and specific needs of American Samoa."

"This is not just about criticizing the Delegate for being asleep at the wheel and AWOL," she emphasized. There are alternatives that have not been pursued as aggressively as needed to prevent this last minute panic attack, and one year reprieve, as the sun sets on Section 936. For example, an American Samoa employment wage credit, tied to actual job creation instead of corporate profits, may be something Congress could actually favor and support without the objections raised against Section 936." (END QUOTE)

I felt 30A was a logical alternative to 936 if it could be customized to meet American Samoa's specific needs. That was not a new position for me. I've been researching this and it is not new information. I can provide him with studies of 936 and 30A form years ago if he is wondering how the idea developed over time.

House passage of the Section 30A language is a triumph for people who were talking about it many months ago. The Delegate backed the wrong horse and I'm glad he finally came around to see it my way. Months ago he was accusing Gov. Togiola of interfering by coming up with his own proposal as well as myself of interfering by proposing a wage based credit, so I'm delighted that he is finally embracing Section 30A.

Amata concluded, "Our Delegate should take a lesson from the late President Ronald Reagan who said, "You can accomplish a great deal if you don't care who gets the credit. The discussion is over. He was still stuck on the unrealistic goal of a 936 extension while the rest of us were already working on a wage credit which was something we all knew we could get done."