American Samoa government workers may be laid off

Local reports say the administration would consider reducing the workforce in June if there’s no change in government finances.

The layoffs were mentioned during a discussion of the cuts in government workers’ hours which began this week.

It’s estimated the reduction in hours, which affects more than 2,500 employees will save $3.2 million for the year.

Meanwhile, the local Senate has passed a wages tax bill allowing for a 2 percent increase in income tax, which is expected to generate several million dollars of additional revenue.

The local House, which is yet to vote, is considering a wage tax rise of 4 percent —  the level the governor had called for —  which officials say will raise $7.4 million.

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