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Press Releases_
FOR IMMEDIATE RELEASE
June 5, 2008
Washington, D.C. -- Faleomavaega and colleagues request support for bill to extend full benefits of the New Markets Tax Credit program to include U.S. Territories
Congressman Faleomavaega announced today that in a joint letter with Congressman Luis Fortuno of Puerto Rico, Congresswoman Madeleine Bordallo of Guam, and Congresswoman Donna Christensen of Virgin Islands, they requested support from Chairman Charles Rangel of Committee Ways and Means and Ranking Member Jim McCrery for a bill that would extend the benefits under the New Markets Tax Credit (NMTC) Program to include the U.S. territories. Cosponsored by Faleomavaega, Bordallo, Christensen, and Fortuno, H.R. 5742 seeks to amend the Internal Revenue Code to extend eligibility under the NMTC for community development entities created or organized in American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, and the Virgin Islands. The full text of the letter is included below.
Dear Chairman Rangel and Ranking Member McCrery:
We write to respectfully request your support for a bill we recently introduced to extend the full benefits of the New Markets Tax Credit (NMTC) Program to the U.S. territories. H.R. 5742, a copy which is enclosed for your review, would amend the Internal Revenue Code of 1986 to allow the Secretary of the Treasury to certify otherwise qualified Community Development Entities (CDEs) created or organized in any one of the five U.S. territories as eligible to participate in the NMTC Program. Although CDEs created or organized elsewhere in the United States currently operate in the territories under the NMTC Program, a CDE created or organized in a territory is effectively precluded from doing so and is in fact ineligible for CDE certification due to its location under the authorizing statute (26 U.S.C. 45D).
The Secretary of the Treasury recently denied CDE certification to a reputable not-for-profit organization incorporated in Guam that aimed to invest in low income housing and that otherwise satisfied the strict parameters of a CDE. The denial was due solely to its location of incorporation in a territory.
H.R. 5742 would correct an oversight of the Congress in the enactment of the Community Renewal Tax Relief Act of 2000, which authorized the NMTC Program. We do not believe Congress meant to exclude the territories from full participation under this important program. The goal of the NMTC Program is to stimulate investment in low income communities, yet entities organized for such investment purposes in the jurisdictions we represent are unable to take advantage of this program for the benefit of their own communities. We believe our bill is entirely consistent with the legislative intent of the Community Renewal Tax Relief Act of 2000 and would allow for otherwise qualified organizations in the territories to fulfill the purposes of the NMTC Program in the communities within which they are incorporated.
Faleomavaega and his colleagues concluded their letter saying, "We urge your support for H.R. 5742 and request your leadership in advancing it through the legislative process either as a standalone bill or as part of any appropriate larger tax bill. Thank you for your attention to our request."
FOR IMMEDIATE RELEASE
May 20, 2008
Washington, D.C. -- Faleomavaega commends ASG for signing into law legislation that would allow military personnel to register and vote absentee for Governor, Lt. Governor, and local representatives
Congressman Faleomavaega announced today that he commends Governor Togiola for signing into law legislation that would allow military personnel to register absentee to vote in elections for Governor, Lieutenant Governor, and local Representatives.
"For years, I have been saying we have got to do right by our sons and daughters who are serving in the U.S. Armed Forces," Faleomavaega said, "and as a result of recent news that Governor Togiola has come on board and signed into law legislation that allows our military men and women to register absentee to vote in local races finally complements what we have already done on the federal level."
"I especially thank our local legislature and our Chief Election Officer for working together to get this done. On October 20, 2004, President Bush signed into law H.R. 2010, giving American Samoa's military men and women the right to fully participate in federal elections held in American Samoa, and Governor Togiola and many of our Fono members ended up supporting this historic legislation which I introduced in 2001 in response to a Congressional survey conducted by my office in which more than 85% of those surveyed in American Samoa agreed that our military men and women should be allowed to register as absentee voters, and participate in local, federal and run-off elections."
"I sincerely appreciate that the people of American Samoa are united in support of our active duty men and women who put their lives on the line every day for us," Faleomavaega said. "It is good news that they can now participate in American Samoa's elections at the local and federal level. This legislation is long overdue but I commend ASG for doing the right thing."
"While I introduced legislation on June 22, 2007 on behalf of our military men and women to allow them to register and vote absentee for the office of Governor, Lieutenant Governor, and our local Representatives, our local leaders decided that they would take up the issue and, on October 31, 2007, I submitted a draft amendment to our Chief Election Officer, High Chief Soliai."
"I thank High Chief Soliai, Senate President Lolo Moliga and Senators, Speaker Savali T. Ale and Representatives, former Representative Ae Ae, and Governor Togiola for supporting our efforts and bringing our local laws in line with federal law so that our men and women in the military are afforded maximum voting participation. I also thank CSM Iuni Savusa, CSM Tui Nua, CSM Ioakimo Falaniko, and Major Tauapa'i Laupola who have been our strongest advocates. Above all, I thank our military men and women and their families for the sacrifices they make to keep America safe and strong. While our military men and women are away serving us, I join with you in praying for their health and happiness and safe return," Faleomavaega concluded.
FOR IMMEDIATE RELEASE
May 23, 2008
Washington, D.C. -- Faleomavaega to speak at API Heritage celebration and Samoan Community Church revival at Fort Bragg, North Carolina
Congressman Faleomavaega announced today that he will be speaking at the Fort Bragg Annual Asian-Pacific American Heritage Month Observance ceremony on Tuesday, May 27, 2008. This event is sponsored and coordinated by the XVIII Airborne Corps and the 16th Military Police Brigade at Fort Bragg, North Carolina.
This event is part of the many celebrations by the various federal agencies and military installations across the country and abroad in observance of May as the Asian-Pacific American Heritage Month designated by Congress since 1992. This year's national theme is "Leadership, Diversity, Harmony-Gateway to Success."
"May is a special month for all Asian and Pacific Islander Americans because we are able to celebrate and recognize the contributions that we have made to our nation," Faleomavaega said. "Through our many languages, history, and cultures, we have added much to the diversity of our society. At 15 million strong, Asian-Pacific Americans is among the fastest growing demographic group in the U.S. today. We have excelled in many fields through education, science, and technology, but most importantly, we have volunteered and serve proudly in our armed services in the protection of our everyday freedoms."
"I am honored that Brigadier General Arthur Bartell, Deputy Commanding General at Ft. Bragg, was able to afford me this special invitation to speak at their celebration. This event will be an opportunity to share and celebrate our cultures with other fellow Americans. At Ft. Bragg, I will also have the opportunity to meet with our many Samoan soldiers and the growing Samoan community throughout North Carolina and from the surrounding states."
"During this weekend, the Samoan Christian Congregation at Ft. Bragg will host a fellowship and revival for Samoan youth from around the East Coast. Through this endeavor, they have invited other Samoan congregations and communities from Camp Lejeune (North Carolina), Ft. Stewart (Georgia), Ft. Benning (Georgia), Ft. Gordon (Georgia), Ft. Polk (Louisiana), Ft. Campbell (Kentucky), and the Samoan community at Ft. Myer (Washington, D.C.) to participate. I am privileged to have been asked to also address this gathering and to share my thoughts with our youth."
"This is a momentous event for our Samoan community and especially for our youth. It is an opportunity for the youth to fellowship with one another and to celebrate the gospel and our rich Samoan culture. Given the increase in youth violence and teen pregnancy throughout our country, we must redirect our focus in enhancing family values that have been bestowed by our religious beliefs and Samoan culture."
"I want to take this opportunity to thank General Bartell for his special invitation for me to speak at this year's Asian-Pacific American Heritage celebration in Ft. Bragg. I also want to thank the leaders of the Samoan Christian Congregation at Ft. Bragg, Faith Leader Solomona Olo, Command Sergeant Major Tuileama Nua, and Major Tauapa'i Laupola, for inviting me to speak at their fellowship, and for taking the initiative to help our youth," concluded Congressman Faleomavaega.
FOR IMMEDIATE RELEASE
May 23, 2008
Washington, D.C. -- Faleomavaega requests GAO study of customs and duties laws in American Samoa
Congressman Faleomavaega announced today that at his request Chairman Nick Rahall of the House Committee on Natural Resources, and Chairwoman Donna Christensen of the Subcommittee on Insular Affairs, have joined him in calling upon the Government Accountability Office (GAO) to conduct a comprehensive review of Customs and Duties Laws in the U.S. Territory of American Samoa. Copies of the letter have been provided to the Governor's office and to the Fono. The full text of the letter sent to Mr. Gene L. Dodaro, Acting Comptroller General of the U.S. GAO, is included below.
Dear Mr. Dodaro:
We are requesting that the U.S. Government Accountability Office (GAO) conduct a comprehensive review of Customs and Duties Laws in the U.S. Territory of American Samoa. Our purpose for a GAO study is to assist the U.S. Congress in its efforts to assess existing lapses or inadequacies that may pose security and economic risks to the United States from goods transshipped, via sea or air, from American Samoa to official U.S. ports of entry.
U.S. Federal administration of these islands was initially delegated to the Secretary of the U.S. Navy by the U.S. Congress in 1929 (48 USC Sec. 1661). In 1951, President Harry S. Truman issued Executive Order 10264 transferring administrative responsibility to the U.S. Secretary of the Interior. On June 2, 1967, the Secretary of the Interior approved the territorial constitution that the people of American Samoa had adopted in 1960 and revised in 1966.
Under the terms of this relationship, the American Samoa Government (ASG) is authorized to formulate and administer its Customs and Duties Laws. Such laws encompass security at ports and airports, inspection of persons and incoming merchandise and baggage, production of documents by entering or leaving vessels, boarding and searching vessels, release of imports, furnishing of invoices to Treasurer, and refund of duties or excise taxes.
We are unaware however of any comprehensive federal assessment of American Samoa's Customs and Duties Laws and given the strategic location of American Samoa in the Pacific Region, the capacity of local Customs authorities is a matter warranting consideration.
We therefore request a review of the capacities of local authorities in performing and enforcing Customs and Duties Laws which, in effect, prevent security and economic events from occurring at U.S. ports of entry originating from American Samoa. Subsequently, we request an assessment of whether extant ASG Customs Laws and Duties, and their implementation, meet Federal standards and regulations for inspection and examination of its ports and airports.
Faleomavaega and colleagues concluded their letter by stating that "the status of Customs Laws in American Samoa has significant implications on U.S. national security and the political association between the United States and American Samoa. Your review and assessment in the areas outlined above is greatly appreciated. Given the critical nature of a GAO study to the course of action to be taken, we appreciate your assistance and consideration in this matter."
FOR IMMEDIATE RELEASE
May 20, 2008
Washington, D.C. -- Joint Congressional Oversight hearing to be held on special issues related to census data collection in the U.S. Territories
Congressman Faleomavaega announced today that the Committee on Natural Resources' Subcommittee on Insular Affairs and the Oversight and Government Reform Committee's Subcommittee on Information Policy, Census, and National Archives will conduct a joint hearing tomorrow, May 21, 2008, 10:00am, in Room 2154 of the Rayburn House Office Building, Washington DC.
The purpose of the joint hearing is to review why the U.S. Census Bureau is not collecting current and reliable data for American Samoa, the U.S. Virgin Islands, and Guam and how the lack of an annual survey presents obstacles for those making important decisions about these economies and communities.
"For American Samoa, minimum wage is a case in point. While the U.S. Congress asked for information in order to rollback the minimum wage, neither our canneries, ASG, or the DOL could provide Congress with the information it needed to make an informed decision about whether or not our economy could afford further increases," Faleomavaega said. "So, on behalf of our people, I want to thank Chairwoman Donna Christensen of the Natural Resources' Subcommittee on Insular Affairs for holding a hearing on this important matter."
"I also want to thank Chairman Wm. Lacy Clay of the Government Reform Subcommittee on Information Policy, Census, and National Archives since this is a joint hearing. The Joint hearing will shed light on many issues and challenges facing data collection in the insular areas, including American Samoa."
Scheduled to testify at this joint hearing are the Honorable Felix P. Camacho, Governor of Guam; Dr. Frank L. Mills, Director, Eastern Caribbean Center, University of the Virgin Islands; and Mr. Francisco Cimadevilla, Vice President and Editor in Chief, Casiano Communications, Inc. On Panel 2, the two witnesses are Mr. Nikolao Pula, Director, Office of Insular Affairs; and Mr. Thomas Mesenbourg, Acting Deputy Director, U.S. Census Bureau. It is my understanding that ASG will submit a statement for the record.
"As a result of this hearing and the testimony that will be received, I am hopeful that the U.S. Census Bureau will take our concerns seriously and provide improved and meaningful data that will better serve the insular areas," Faleomavaega concluded.
FOR IMMEDIATE RELEASE
May 15, 2008
Washington, D.C. -- Faleomavaega requests emergency aid for American Samoa and CNMI if Congress is unwilling to adjust minimum wage schedule
Congressman Faleomavaega announced today that, at his request, thirteen (13) Members of Congress joined him in signing a letter urging the House and Senate Leadership to support emergency aid for American Samoa and CNMI if Congress is unwilling to adjust the minimum wage schedule as mandated by P.L. 110-28.
"While it is too soon to know if we will be successful in our efforts, I am pleased that Congressman Mike Honda, Chair of the Congressional Asia Pacific American Caucus (CAPAC), agreed to sign the letter and encouraged other CAPAC members to support this initiative," Faleomavaega said. "I appreciate the support of other concerned Members of Congress who also signed."
The letter, which was drafted by Faleomavaega's office and CNMI, was sent to U.S. Senate Majority Leader Harry Reid, Speaker Nancy Pelosi, House Majority Leader Steny Hoyer, Chairman Dave Obey of the Committee on Appropriations, Chairman Norm Dicks of the Appropriations Subcommittee on the Interior, Chairman George Miller of the Committee on Education and Labor, Chairman Edward Kennedy of the Senate Health, Education, Labor, and Pensions Committee, Senator Daniel Inouye, Senator Daniel Akaka, and Senator Jeff Bingaman.
The complete text of the letter is included below.
Re: Emergency Supplemental Appropriations for American Samoa and CNMI
Dear Colleagues:
As members of the Congressional Asian and Pacific American Caucus (CAPAC) and concerned Members of Congress, we strongly support inclusion of funding and language in the FY 08 Emergency Supplemental Appropriation bill that will provide immediate economic assistance to American Samoa and the Commonwealth of the Northern Mariana Islands (attached) until such time as the escalating minimum wage rate is amended.
These remote American territories are experiencing the effects of the U.S. economic slowdown that is further magnified by their distance and isolation. The increased cost of fuel has added to the shipping costs of food and goods, and the availability of basic energy supplies. The main industries of tourism, food production, and garment manufacturing have experienced sharp declines. Adding to the economic challenges facing these islands will be the scheduled increase in the minimum wage later this month.
Last year, P.L. 110-28 mandated an automatic increase of fifty cents per hour effective July 2007 and every year thereafter until 2014 for American Samoa, and 2015 for CNMI. P.L. 110-28 also mandated that the U.S. Department of Labor (DOL) undertake a study to determine what impact these increases might have on both economies.
On January 25, 2008, DOL released its findings. The findings show that neither economy can sustain these increases. The DOL also reported that "by comparison, if U.S. minimum wages were increased to the level of the 75th percentile of hourly-paid U.S. workers, that the adjusted wage rate would be $16.50 per hour."
While we understand that there may be some disagreements about the report, for now it is the only report Congress has and, until such time as Congress is willing to direct the DOL to conduct another study, we believe Congress should be obliged to respect the DOL findings and hold off, or offset, further minimum wage increases as recommended.
Please consider the following compelling concerns:
As a result of these serious trends and an estimated loss of as many as 25,000 people from its population, the CNMI government now faces the need for a rapid down-sizing in the coming months. However, there may not be jobs waiting in the private sector with the minimum wage increase and rising costs of doing business.
While we support the intent of federal minimum wage law and stand with America's workers, we are convinced that further increases in American Samoa and CNMI must proceed cautiously. Like Senators Inouye, Akaka, and Bingaman, who offered an amendment based on H.R. 5154, we prefer to delay minimum wage increases in American Samoa and CNMI from every year to every two years and make increases contingent on a determination by the Secretary of Labor that the increase would not substantially curtail employment. However, the Senate HELP Committee, and the House Committee on Education and Labor prefer that the increases move forward as scheduled.
Recognizing that the next scheduled increase is to take place on May 25, 2008, we urge you to include funds in the FY 08 Emergency Supplemental that will serve as a fiscal bridge to a sustainable future for American Samoa and CNMI, and that will save both economies from economic collapse. We are requesting $15 million for each territory to use in assisting employers and employees, citizens and guest workers, and the local governments during this difficult and challenging period. These funds will maintain economic stability for the next year until such time as Congress reviews the economic impact of further increases in minimum wage.
The Members concluded their letter by stating, "Especially during Asia Pacific Heritage Month, we are hopeful that you will support our request and join with the Association of Pacific Island Legislatures and the American Samoa Legislature, which have also adopted resolutions (attached) in favor of H.R. 5154 and/or an emergency supplemental appropriation."
FOR IMMEDIATE RELEASE
May 14, 2008
Washington, D.C. -- SFC Senetenari "Sene" Polu awarded purple heart and combat action badge
Congressman Faleomavaega announced today that he was pleased and honored to have been asked by Sergeant First Class Senetenari "Sene" Polu and his wife Rosie Polu to present Sene the Purple Heart and Combat Action Badge. On May 12, 2008, SFC Sene Polu was presented the Purple Heart and Combat Action Badge by Faleomavaega on behalf of the United States Army as a result of the injuries he received while serving in Iraq.
The Purple Heart is awarded in the name of the President to those who have been wounded or killed while serving with the U.S. military. The Combat Action Badge or (CAB) provides special recognition to Soldiers who personally engage the enemy, or are engaged by the enemy during combat operations, and performing satisfactorily in accordance with the prescribed rules of engagement.
On April 2, 2008, Platoon Leader Sene Polu was injured along with his Platoon Radio Telephone Operator (RTO) and an Iraqi interpreter assigned to his unit when his patrol encountered an improvised explosive device or IED while conducting combat operations in the Diyala Province, Iraq.
SFC Sene Polu is the son of Mr. Pe'a Polu and Mrs. Avalele Polu, of Faleasao, Manu'a. He is assigned to the 2nd Battalion, 12th Field Artillery, which is part of the 4th Brigade (Stryker Brigade Combat Team), 2nd Infantry Division headquartered at Fort Lewis, Washington. The 4th SBCT deployed to Iraq in April 2007 and is operating in Diyala Province, Iraq.
In presenting the military awards, Congressman Faleomavaega was assisted by U.S. Army Captain Phillip Radzikowski from SFC Polu's unit in Fort Lewis, Washington. Also in attendance during the ceremony in Congressman Faleomavaega's office were SFC Polu's wife Rosie Polu and their two children - Charlie and Chastity, YN1 (AW/EXW) Alex A. Amosa who is on assignment at the Pentagon, Petti Matila who is the current American Samoa Intern in Senator Daniel Inouye's office, Rosia Curry, and Faatalivale Te'o-Lewis from the local Samoan community in Washington, DC.
"Words cannot describe my heartfelt emotions when I was pinning the medals - the Purple Heart and Combat Action Badge - on Sergeant First Class Sene Polu," Faleomavaega said. "I was truly honored to be part of this special ceremony."
"Sene is a remarkable individual and an outstanding soldier. He answered his country's call to go fight a war where he did an incredible job in leading his troops in combat and providing safety to the people of Iraq. He is well deserving of these awards and I am most pleased to have been asked to play a small part in his awards ceremony."
"Although I have been to several of these ceremonies before, it was different in the case of Sene as I can remember how sad I felt seeing his injuries when Command Sergeant Major Iuni Savusa and I first visited him at Walter Reed Army Medical Center last month. I never thought this young man would be in the condition he is in now. Sene is a real trooper, a true Toa o Samoa."
"Based on what I saw when I first visited Sene with the seriousness of his injuries, it was unbelievable and almost surreal for me to see Sene walking on his own strength into my office. Sene has undergone about 15 surgeries over a very short period of time and he may still have more to go through. Truly, his amazing progress towards recovery is nothing short of a miracle."
"I congratulate Sergeant First Class Sene Polu for his bravery and thank him for his many years of selfless service to our country."
"I also congratulate Mrs. Rosie Polu for her courage and for remaining strong in support of her husband. Rosie and their two children, Charlie and Chastity, have been on Sene’s side assisting and taking great care of him ever since his injury."
"At this time, I ask everyone to please keep Sene in your prayers that he is able to fully recover from his injuries. I also ask that we continue to pray for all the other soldiers who have been injured, and for the safe return of those who are currently serving in Iraq and Afghanistan," Faleomavaega concluded.
FOR IMMEDIATE RELEASE
May 13, 2008
Washington, D.C. -- Faleomavaega congratulates CSM Iuniasolua Savusa as the new International Security Assistance Force, Kabul, Afghanistan, Command Sergeant Major
Congressman Faleomavaega today offers his congratulations to Command Sergeant Major Iuniasolua Savusa on his selection as the new Command Sergeant Major for the International Security Assistance Force in Kabul, Afghanistan. The selection was announced by the United States Army in a news release on Monday, May 13, 2008.
CSM Iuniasolua Savusa, who hails from the village of Nu'uuli, American Samoa, has been the Command Sergeant Major for the United Sates Army Europe and Seventh Army since May, 2006. His most recent assignments included Command Sergeant Major for the United States Army Southern European Task Force (Airborne) in Vicenza, Italy, and Post Command Sergeant Major in Fort Polk, Louisiana.
In 2002, Iuni Savusa deployed to Afghanistan in support of the War on Terrorism and served as Command Sergeant Major for the Task Force Rakkasan, 101st Airborne Division (Air Assault). In 2005, he again deployed to Afghanistan with the Southern European Task Force (Airborne) as Command Sergeant Major for the Combined Joint Task Force - 76. He also deployed in 2003 as the Command Sergeant Major for the 3rd Brigade, 187th Infantry Regiment (Rakkasan), 101st Airborne Division (Air Assault) in support of Operation Iraqi Freedom I.
CSM Iuni Savusa is the son of the late Savusa Tului of Nu'uuli and Talaitupu Savusa of Fagasa, American Samoa. He is married to the former Mareta Siatini Iese of Fagatogo, American Samoa. They have four children - Alexis Salainaoloa, Alexandrya Falegaui, Alexander Lototasi-Chester, and Alexandrite Maima.
"I wish to congratulate Command Sergeant Major Iuni Savusa for yet another major feat in his most impressive military career," Faleomavaega said.
"Without doubt, this selection by the U.S. Army and our nation's military leaders is a confirmation of their faith in Iuni's strong leadership and experience that he will be able to lead this international effort in our continued fight against terrorism around the world."
"Again, I congratulate Iuni and wish him the very best in his new assignment. You are truly a Toa Samoa and you have continued to make us all proud as Samoans," Faleomavaega concluded.
FOR IMMEDIATE RELEASE
April 28, 2008
Washington, D.C. -- U.S. Treasury sending $20.4 million to ASG to pay out Economic Stimulus payments to qualifying residents
Congressman Faleomavaega announced today that the American Samoa Government will receive $20.4 million from the U.S. Department of Treasury to be paid out to qualifying residents as part of the Economic Stimulus Package that was signed into law to jumpstart the economy.
Faleomavaega and Congresswoman Madeleine Bordallo urged the Leadership of the House and Senate to include the Territories in the stimulus package and make child tax credits and tax rebates available to qualifying residents. The Members were successful in their efforts and, prior to the bill being signed into law, in a letter dated January 29, 2008, Faleomavaega informed Governor Togiola and the Fono that, for American Samoa, the U.S. Treasury would send a check of an estimated amount and ASG must have a plan approved promptly to disburse the money quickly.
In a joint letter dated February 15, 2008 to Secretary Henry M. Paulson of the Department of Treasury, Faleomavaega along with Congresswoman Madeleine Bordallo, Congresswoman Donna Christensen, and Resident Commissioner Luis Fortuno also urged the Secretary to implement an arrangement that will provide for the funds to be transferred in advance of the actual payouts of the rebates.
"Today, Secretary Paulson has honored our request and I thank him for informing my office that he has accepted ASG’s plan for distributing stimulus payments to residents of American Samoa, and that ASG will receive a check for $20.4 million in order to payout tax rebates and child tax credits to those who qualify,” Faleomavaega said. "This payment is in accordance of the Economic Stimulus Act of 2008 that was signed by the President on February 13, 2008."
"The stimulus package was easily passed by both the House and Senate and I, again, thank Chairman Charles Rangel of the House Committee on Ways and Means and Chairman Max Baucus of the Senate Finance Committee for supporting our request to include the territories in the Economic Stimulus Act of 2008."
"I also commend Governor Togiola and our local Tax Office for acting quickly and submitting a plan that has been approved by the U.S. Treasury. I am especially pleased that the people of American Samoa will benefit from these rebates which will help bolster our local economy," Faleomavaega concluded.
The full text of Secretary Paulson's letter of April 28 informing Governor Togiola of the approval of ASG's Distribution Plan was forwarded to Faleomavaega's office by the U.S.
Department of Treasury and is included below.
Dear Governor Tulafono:
Thank you for your letter of April 23, 2008, submitting the Distribution Plan for the Recovery Rebates (the Plan) in American Samoa. The Economic Stimulus Act of 2008, P.L. 110-185 (the Act), requires that I approve American Samoa’s plan for distributing stimulus payments to residents of American Samoa. The Act also requires that once such a plan is approved, the Treasury Department make a payment to American Samoa in an amount estimated as being equal to the aggregate benefits that would have been provided to residents of American Samoa by reason of the amendments made to the Internal Revenue Code by section 101(c) of the Act if a “mirror code” tax system had been in effect in American Samoa.
In accordance with the Act, I approve the Plan, a copy of which is enclosed. Also, we have estimated the aggregate benefits that would have been provided to residents of American Samoa by reason of section 101(c) of the Act if a mirror code tax system had been in effect in American Samoa at $20.4 million. A payment in this amount will be made by the Treasury Department to American Samoa to fund the prompt distribution of stimulus payments to resident of American Samoa pursuant to the Plan.
Sincerely,
Henry M. Paulson, Jr.
FOR IMMEDIATE RELEASE
April 14, 2008
Washington, D.C. -- Faleomavaega responds to inquiries regarding the Trade and Globalization Assistance Act
Congressman Faleomavaega announced today that he is responding to inquiries about H.R. 3920, the Trade and Globalization Assistance Act. Faleomavaega received inquiries from Samoa News in response to Governor Togiola’s radio program in which he stated that he planned to ask Faleomavaega for assistance in including American Samoa in this bill which has passed the House and is pending in the Senate.
"I thank the Governor for his interest in a matter my office has already been involved in for some time," Faleomavaega said. "The issue is complex and I am hopeful that this press release will clear up some of the misunderstandings surrounding Trade Adjustment Assistance."
"Trade Adjustment Assistance (TAA) provides income support and training to qualifying workers who lose their jobs as a direct result of increased imports or shifts in production out of the United States. However, the issue is complex for American Samoa because TAA is dependent upon a worker being eligible for unemployment compensation as defined by the unemployment insurance (UI) program."
"Workers in American Samoa are not eligible for unemployment compensation as defined by the UI program, and it is unclear as to why this is the case. I have asked the Congressional Research Service to review American Samoa’s history, the history of the UI program, and transcripts of hearings held by Congress since the 1930s in an effort to get to the bottom of this."
"In brief, the UI program was created in 1935 when millions lost their jobs in the Great Depression. The program works as follows. States and Territories tax their employers, or local businesses. From the taxes imposed on employers, States and Territories send a portion of these funds to the federal government to hold in trust for workers, or employees, who may become unemployed."
"For example, to protect its workers, the State of Hawaii taxes Aloha Airlines and all other businesses operating in Hawaii. The State of Hawaii then sends a portion of the taxes it collects from these businesses to the federal government to hold in trust for workers who may become unemployed should Aloha Air, or any other business operating in Hawaii, lay off its workers."
"If a worker is laid off, the worker can apply for unemployment benefits and can receive a check, or unemployment compensation from the trust fund, for up to 6 months. Again, the trust fund is made up of dollars collected by State governments that tax businesses operating in their State or Territory. These are not federal funds. The federal government only holds the funds in trust, and sends out the checks, or compensation, to the unemployed workers."
"All 50 States plus the District of Columbia, the Virgin Islands, and Puerto Rico participate in the UI program. American Samoa and Guam do not. Therefore, when workers in American Samoa get laid off, they are not eligible for unemployment benefits from the trust fund."
"Also, because the TAA program is calculated according to UI benefits, American Samoa cannot be included in the TAA program until such time as ASG is able to explain what kind of program it has in place to help unemployed workers and how it calculates how much money a worker should receive if he or she becomes unemployed."
"First and foremost, we need to know if ASG is requiring our local businesses to pay taxes and, if so, how much. Then we need to know if ASG is setting aside a portion of those taxes to help our workers in case they become unemployed. We also need to know what kind of calculation ASG is using to send out unemployment checks, if any."
"We will then use these calculations to make our case that ASG has some kind of program in place that may be used to calculate TAA benefits for our workers. If passed into law, TAA would provide qualifying workers with up to one year of unemployment benefits plus training should they become unemployed due to increased imports or shifts in production out of the United States."
"However, the first 6 months of TAA benefits must be paid from the State taxes held in trust by the UI program. The last six months of TAA benefits will be paid by the federal government, and will be based on the UI benefit. This means that ASG must use the taxes it collects from our local businesses to pay TAA benefits to our workers for the first six months of their unemployment after which time the federal government would pay our workers for the last 6 months of their TAA benefits."
"Like the Governor, I believe our workers should be eligible for TAA benefits if they so qualify and I am hopeful that ASG will move quickly to put a plan in place to pay for the first six months of TAA benefits should this become law. Once ASG determines its course of action, I will move forward with the federal side which will provide TAA benefits for the last six months of a worker's unemployment, and also training."
"But this effort will take time due to the mitigating circumstances which we face because ASG does not currently participate in the UI program. Given these unusual circumstances, I have asked that language be included, or a study undertaken, to determine how our workers might be able to participate if ASG is unable to do its part," Faleomavaega concluded.