Gov. Togiola writes to Congress in support of AS tax incentive package
Governor Togiola Tulafono has sent a request to Congressional leaders requesting that American Samoa be included in any economic recovery legislation that is considered in the near future.
According to the Governor, there have been talks on Capitol Hill about a second stimulus package, and he does not want American Samoa to miss out on any opportunity for its tax incentive package to be passed by Congress.
American Samoa’s tax incentive package, H.R. 1916 was introduced by Congressman Faleomavaega Eni in this most recent session of Congress on April 18, 2007. The tax incentive amends the US Internal Revenue Code to expand and extend the American Samoa economic development credit for ten years, and the credit would apply to all qualified domestic corporations, not just the two local canneries.
“We are most grateful to Congressman Faleomavaega for his critical assistance with this package,” said the Governor. While details of a second stimulus are not available, there is much talk about some legislative enactment to slow the economic deterioration that is happening in the U.S. and globally.
“I would be remiss if this opportunity were to get by us for passage of this important piece of legislation that would help us move forward with our economic development,” said Governor Togiola. “The bottom line is that American Samoa’s efforts at economic development have to be aligned with federal initiatives in order to maximize opportunities for the Territory. We are committed to making this a reality for our island home.”
In his letter, Togiola explained the current economic conditions in the territory and said that past congressional inadvertence towards American Samoa is in large measure due to the fact that neither the Bureau of Labor Statistics nor the Census Bureau collects timely economic data for the territory.
“Regular data collection provides Congress with ample details on labor, employer, and household conditions in the 50 States, the District of Columbia, Puerto Rico, and the Virgin Islands. But lack of such data for American Samoa leaves Congress and the federal departments unaware of the impact that the nationwide economic crisis has on our territory,” the Governor wrote.
He referred to a January 25, 2008 Department of Labor report to Congress stating that the territory’s economy is still small, developing, and fragile. In hearings before the Senate committee on the territories, the DOI reported that “American Samoa has the narrowest economic base” of the four territories.
Togiola said that although federal funds have played a significant role in the territory, the per capita rate of federal expenditures in American Samoa is half that for the rest of the country. Consequently, long-term economic development in the territory depends on the private sector for job creation and investment.
He explained that investment and job creation locally have been deterred by inconsistent federal policy towards the territory, and the local economic situation has also worsened, with added problems being brought on by the national economic crisis.
The Governor said that in the current economy, the territory is unable to foster its economic development without federal support, and that is why the American Samoa Government is requesting enactment of a federal economic development tax program in line with past jobs and investment initiatives.
“The proposed economic development tax incentive will greatly assist employment and investment in American Samoa,” Togiola wrote.
The US House of Representatives, which has been sensitive to the ramifications that federal tax policy change has on American Samoa, has extended the existing economic development credit for American Samoa on a temporary basis, in order for Congress to fully assess conditions in the territory.
“On behalf of the people of American Samoa, I wish to express appreciation for your past support, “ Togiola wrote. “With the present economic crisis, I urgently request action on an investment and jobs creation program. Such a national program should also address the economic conditions in the territories, particularly, American Samoa. Recovery legislation will help us cope with the current economic difficulties and thus secure future growth.
Copies of Togiola’s letter were forwarded to Sen. Daniel K. Inouye (D-HI) – Chairman, Committee on Appropriations; Sen. Jeff Bingaman (D-NM) – Chairman, Committee on Natural Resources; Sen. Max Baucus (D-MT) – Chairman, Committee on Finance; Rep. Charles B. Rangel (D-NY) – Chairman, Committee on Ways and Means; Rep. Nick Rahall (D-WV) – Chairman, Committee on Natural Resources; Rep. David R. Obey (D-WI) – Chairman, Committee on Appropriations; and Rep. Nancy Pelosi (D-CA) – Speaker of the House.
|
