9 Mar 2011

American Samoa opts for tax hike to fight crisis

2:35 pm on 9 March 2011

American Samoan lawmakers have reached agreement in support of a two percent increase in income taxes.

The House of Representatives has already approved the increase but the Senate has stalled a final vote until tomorrow.

The tax increase, which will be effective for one year, is one of a series of measures aimed at easing a financial crisis in the territory.

The current minimum income tax in American Samoa is four percent with all classes of income tax to be increased by two percent if the bill is passed and signed into law by the governor.