The House and Senate reached a compromise Thursday morning on the bill to amend the Earned Income Tax Credit law.
Meeting jointly, under the chairmanship of Senator Togiola Tulafono and Rep Trude Ledoux Sunia, the two chambers agreed to include specific language in the bill which provides an opening for the executive branch to request local funds to pay EITC benefits, once federal funding is depleted.
Senator Togiola explained that the Senate amendment to the bill ensured that ASG is not liable to pay the EITC if the federal funding runs out. But it does not preclude the government from requesting the Fono to appropriate local funds to meet any EITC payments that are not covered by the federal funding.
House Speaker Savali Talavou Ale pointed out that the income threshold to be eligible for the EITC credit has been lowered from $29,000 to $14,000 so it’s possible that the funding from the federal government would be enough. He said the House’s main concern with the Senate’s amendment was that it would cut off payments to those who are eligible and entitled for the EITC credit. And while Togiola’s explanation is that the government can request local funds to pay benefits beyond the funding provided by the federal government, this is not reflected in the actual language of the Senate amendment. He indicated that the House would agree to the Senate amendment if language is added to say that the government can request local funds to pay EITC credits not covered by the federal funding.
A motion for the additional language was passed by all senators and representatives present. The House and Senate will vote Monday on the final version of the EITC bill.
