The Chairman of the ASG Revenue Task Force, Attorney General Talauega Eleasalo Ale, told a hearing of the House Budget and Appropriations Committee yesterday that it was the intention of the group to propose both revenue measures to raise money for the government and at the same time give back to tax payers.
Among their proposals was to remove the 2% wage tax and replace the 2000 income tax table with the 2004 tax table.
Committee Chairman Rep. Vailiuama Steve Leasiolagi pressed at the hearing if government revenues were now at a stage where ASG could afford to give money back to taxpayers through the removal of the 2% wage tax. 
He referred to revenue bills that the Legislature approved such as the 8% excise tax on imports for resale, the 1% Alternative Minimum Business Tax and a bill increasing dock and wharfage charges. The Fono also enacted a bill to license money transfer businesses.
Vailiuama said the hospital’s coffers should also be raking in sufficient revenues with the 100% waiver of the Medicaid match.
He asked the ASG officials Talauega, Budget Director Cathy Saelua, and Deputy Treasurer Tina Vaa to testify how much money has been raised from the revenue bills already enacted.
The officials said they would have to compile this information and submit a report to the Committee.
Talauega also informed the committee that the Revenue Task Force’s authority has expired.
In response to questions about the 2% wage tax going to the hospital, Deputy Treasurer Tina Vaa said the hospital has debts with the government and these are offset against the 2% wage tax revenues for LBJ.
Such hospital debts she said include income taxes for hospital employees.
She stated that there’s delays paying the portion of the 2% wage tax collected from the private sector, but payments for the wage tax from ASG are current.
Vaa also told the committee that when ASG closed its books for Fiscal Year 2018, ASG owed the hospital $5.2 million. But, she said as of March 2019, ASG was up-to-date with payments for LBJ.
The second quarter performance report for the LBJ Hospital documents that in the first and second quarter of FY2019, ASG never paid the budgeted subsidies of $2 million.
As for the 2% wage tax, ASG paid LBJ $1,095,364 in wage taxes for the 1st Quarter and $769,644 in the 2nd Quarter. That amount was $1.1 million less than what was budgeted.
