It’s expected that a bill to repeal the 2% wage tax now assigned to the LBJ Hospital will be introduced in the House.
The subject came up again in a hearing last week with the Director of the Medicaid Office Sandra King-Young, with the Chairman of the House Budget and Appropriation Committee Vailiuama Steve Leasiolagi stating that with increased Medicaid funding now available the 2% wage tax is no longer needed.
The 2% wage tax was one of the topics which the the gubernatorial teams that participated in the Chamber of Commerce’s, “Lets Talk Business Forum” last Thursday night were asked.
The question was, “Its been reported in the news that the LBJ Hospital hasn’t been receiving its portion of the 2% wage tax. If elected would you repeal the 2% wage tax, why or why not ?”
It was the Iaulualo & Tapaau Team’s turn to answer the question first and Candidate for Governor Iaulualo Faafetai Talia gave their answer
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Candidate for Governor Nuanuaolefeagaiga Saoluaga Nua of the Nua & Satele team gave this answer.
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Candidate for Governor Lemanu Peleti Palepoi Sialega Mauga gave the Lemanu and Talauega team’s answer in Samoan.
He said four of them sitting on stage were in the Fono when the 2% wage tax was approved for the hospital with 1% going to the off island medical referral program and 1% going to operations.
Lemanu stated that the tax served its purpose at that time but now there are several sources of funding available. He also said that the 2% has always been an unfair tax because it doesn’t apply to everyone only those who are employed, yet the hospital doesn’t serve just workers.
Lemanu pointed out a sales tax has been proposed to replace the wage tax, and also contribute to the Medicaid fund which needs to be well funded as a stead source of funding for the hospital.
