10 Feb 2012

American Samoa tax hike amid hospital funding woes

1:52 pm on 10 February 2012

Lawmakers in American Samoa have approved three million US dollars in supplemental funding for the financially troubled LBJ Medical Center.

This comes after a dramatic week in which the hospital hiked fees and announced staff layoffs while the government announced plans to take direct control of the state agency.

The money is coming from the Workmen's Compensation Account and will be paid for with a higher income tax.

All workers will be required to pay another two percent in income tax ,with all revenue going to pay off the loan.

Once that is done the extra tax raised will be earmarked as long term funding for the LBJ hospital.