Congresswoman Stacey Plaskett (USVI) released the following statement regarding Congress’ action on territories’ tax credit reimbursements and other tax measures:
“Earlier this week, several media outlets shared information regarding movement in the U.S. House of Representatives on a measure to provide reimbursement to the Government of the United States Virgin Islands [and other territories as applicable] for money the local government disburses for the Earned Income Tax Credit [EITC] and the Child Tax Credit [CTC]. Because our office has received questions regarding the taxes and the bill’s implication to the V.I., we thought it necessary to provide some background and information on the potential outcome.
“Since my first swearing in as the Delegate to Congress, I have introduced a bill for the reimbursement of the EITC and CTC in each Congress. In the 116th Congress, on Jan. 9, 2019, I introduced HR 410, the Territorial Economic Growth and Recovery Act of 2019. This bill recognizes the cost to the local government which under its Mirror Tax Code must utilize the federal tax form and thus disburses approximately $20 million annually for the EITC and approximately $7 million annually for the CTC. My bill addresses the need for reimbursement to the territories as well as other tax issues, including Medicaid.
“Over the past five years, during my Advocacy Day on the Hill, Virgin Islanders have spoken with my colleagues on Capitol Hill, amplifying the importance of specific issues. This tax bill was of particular importance. My office is grateful for the opportunity to work directly with the Governor of the Virgin Islands and the Senators of the Legislature of the Virgin Islands on matters of importance. I was particularly excited when Senator Donna Frett-Gregory approached me in March 2019 about the need for the tax reimbursement and her work on the matter. The passage of her Resolution 1850 which ‘aims to petition Congress to provide the territory with subsidies that will assist in the payment and reimbursement of Earned Income Tax Credits and Child Tax Credits to residents.’ Senator Frett-Gregory’s leadership in advancing the resolution adds an important voice to this critical matter and now with a Democratic majority in the House, we have been able to get this language added to a larger tax bill. We are presently working on having the reimbursement placed in a Senate tax bill.”