For the past two years Earned Income Tax Credit payments have reached $24 to $25 million. However the US Treasury provided just $18 million for the credit payments. In order to keep the EITC benefits commensurate with the amount of funding provided by the US Treasury, the administration has proposed amendments which would lower the entitlements for local wage earners.
Tax Office Manager Tagoai Vaaimamao Poufa Teo told a Senate hearing on Friday that without the changes the local government would have to pay whatever is not covered by the $18 million provided by the US treasury for Earned Income Tax Credits payments.
According to the amendments, the credit for an individual with 1 qualifying child is $10,641, for a person with 2 or more qualifying children the credit is $14,949 and the Credit for an individual with no qualifying child is $9,814. The phase out amount is the same as the earned income credit amount.
Senators approved the Earned Income Tax Credit bill amendments in second reading Friday.
