House and Senate conferees were unable to reach agreement on the bill to amend the Earned Income Tax Credit law.
At issue is an amendment that Senators made to the administration bill stating that the American Samoa Government shall not be liable for EITC payments if federal funds are not made available. The Senate conferees were Senators Utu Sila Poasa, Magalei Logovii and Levu Iosia while the House conferees were Reps Trude Ledoux-Sunia, Fetui Fetu and Vailoata Amituanai.
In a House discussion about the outcome of the Conference Committee meeting, Rep Ledoux-Sunia said the Senate’s position is that once federal funding for the Earned Income Tax Credit payments runs out, no further payments would be made. The EITC benefits would be paid on a first come first served basis. Whoever files after the IRS funding runs out, would not receive the credit.
Vice Speaker Fetui insisted that they should not sway from what the House has approved. To pass the bill as it was submitted by the administration. He said he asked the senate conferees, “What if the federal funding runs out and there are just 3 beneficiaries left to be paid, and they are your relatives?”
Rep Vailoata said senators do not want the government to be liable in paying the EITC beyond the amount provided by the federal government.Once the funding runs out, the EITC payments will be suspended. But he said the House feels the bill should not be changed, and asserted that, the credit would benefit low income wage earners.
House Speaker Savali Talavou Ale took the position that if a person is entitled to the EITC, they should be paid the benefit. He added that anyone who qualifies for the Earned Income Tax Credit could also sue if they don’t receive it. He said the funding from the IRS should be based on information provided by the Tax Office. “If the funding is not enough, then it’s the fault of the Tax Office for not providing the right data,” he commented.
This was also the view of Rep Luaitaua Gene Pan, that the Tax Office should ask for the right amount of funding to cover all those eligible for the EITC.
Rep Fagaima Larry Sanitoa pointed out that the public has been waiting for the bill to be passed so they can finally file their 2025 taxes. He said since the bill reduces the benefit and income threshold perhaps the $18 million provided by the IRS would be enough. He also questioned how the government could raise revenue to cover payments beyond the funding from IRS.
At the end of the House discussion, it was agreed that the House conferees meet with their Senate counterparts again, possibly Friday, and push for the bill to be passed without the Senate amendment.
The Speaker said if the conference committee does not reach agreement in their next meeting, the House and Senate would add three members each to the conference. And if they still fail to come to an agreement another 3 members for each chamber would be added. If that expanded conference committee does not agree on the bill, then the whole House and Senate would have to conference.
