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Tax increases proposed to pay Medicare debt
Tuesday,
April 29, 2008
The chairman of the Hospital Authority Board and CEO of the LBJ Hospital presented revenue-generating ideas to Governor Togiola yesterday.
An appropriation bill to cover the $9 million hospital debt to Medicare is on the agenda of the Special session of the Fono. Board Chairman Moananu Va said he proposed raising the tax on diesel while the LBJ CEO Patricia Tindall suggested an increase in the tax of cigarettes, soda or alcohol. According to Moananu, the governor di dnot support increasing the tax on diesel because it would increase the already soaring price of diesel. He also ruled out increasing the tax on cigarettes, soda and alcohol. The governor reportedly is leaning towards a slight increase in the excise tax for water and juice. Moananu says legislation should be going to the Fono during the current special session to raise the revenues needed to pay the Medicare debt. The chairman said if the bill is not cleared within 6 months, the hospital may lose future funding from the Centers for Medicaid and Medicare.
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