Amata testifies on bill to extend AS tax credit

January 23, 2025 News Leave a reply
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Congresswoman Uifaatali Amata testified before the House Ways and Means on the bill she introduced last week to permanently renew the American Samoa Economic Development Credit.

She said the StarKist Samoa cannery is crucial for the economic sustainability of American Samoa.

As the largest private sector employer in the territory the cannery provides 2,450 jobs or 25% of the island’s employment.

Other related industries on island, such as fueling, shipping and stevedoring, depend on the ongoing activities of the cannery to support their own operations.

Uifaatali explained that the American Samoa Economic Development Credit was designed to encourage investment in the US insular areas and create jobs by reducing the federal taxes on income earned by qualifying US business.

It has helped to alleviate the significant competitive disadvantages facing businesses in the territory, helping companies, including the cannery, continue operations on US soil; while competitors increasingly move business overseas to take advantage of cheap labor and foreign subsidies.

Here’s an excerpt from the Congresswoman’s testimony…

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(Transc.) Amata: The credit represents an offset of approximately a quarter of the canneries annual labor costs. For comparison, relocation of the cannery to outside the U.S. would cut costs by nearly three fourths. Competing canneries in Asia pay their workers the equivalent of less than $2 an hour under harsh and unsafe conditions. To be frank, Starkist has expressed a strong desire to remain in American Samoa under the U.S. flag. Where U.S. workers rights are better protected, but the fact remains that they require government support to remain competitive. A 2023 Gao report noted that reductions in the tuna canning industry would likely also affect support industries such as transportation and warehousing, retail and wholesale and construction in American Samoa. The tax credit also represents an opportunity for further development of the American Samoa economy. While we’re primarily a fishing town, the credit could be used to attract other industries and revenue streams for the island.