Language in the tax laws which the administration believes is how some businesses have been able to get away with not filing their taxes but still obtain a business license, is being removed in a bill which is now before the House and Senate.
The same bill lowers the corporate tax rate from 44% to 34% for businesses that earn more than $650,000.
The lowering of the corporate income tax rate is designed to spur private investment and business growth.
Another provision of the bill applies tax breaks under the Internal Revenue Code for American Samoa taxpayers who contribute to retirement plans.
Since 2000 the amount of contributions to retirement savings that are deductible from income have increased from $2,000 per individual tax payer to $5,500.
The bill states its in the best interest of business owners and individual taxpayers to encourage increased savings to supplement Social security benefits during their retirement years.
The proposed change is designed to do that.
The bill would also remove the exception for payment of taxes as a condition for issuance of a business licenses.
The amendment would require that an applicant for a business license must pay their income taxes before they can be issued a business license.
