No New Taxes Hawaii

The Hawaii State Senate is proposing an increase to the General Excise Tax. SB 1626 SD1 passed out of the Senate Ways and Means Committee today and is more than likely headed to a floor vote next week.

If this bill passes, it goes to the House where it may get a hearing there, and if it passes the house, it will go to the Governor Lingle's desk for signage. Lots of "IFS" right now, but if this tax increase bill gets as far as the Governor's office, it will more than likely be vetoed by her.

However since the State Legislature is still dominated by the Democrats, they could call a special session this summer to override a governor's veto.

As some of you may know, I am adamantly against any and all tax increases.

This bill does have a $100 tax credit for food purchases to offset the GE Tax increase..however this is just typical Democratic party thinking when it comes to tax credits.. they throw you a small credit and raise your taxes elsewhere.

The tax increase is supposed to fund education for the next 10 years or so with a drop dead clause after that (at least in the proposed bill).... After that the increase is supposed to go away.

Fat Chance. There is no such thing as a temporary tax increase. If this bill becomes law and our general excise tax is increased, there is probably no way that the increase will be rescinded even after its 10 year drop date. More than likely another legislature and possibly another governor 8 years later could support a bill to keep the increase permanent. A lot can happen in 10 years.

The bill will also create a special fund for education. Knowing that the state has a lousy track record with special funds, what will happen in the future is that this special fund will grow and then be a tempting target to be raided to fund something else.

I say we must do everything we can to keep our money in our own pocket and not let Hawaii's State Government through the legislature take it away through a tax increase. The cost of living in Hawaii is high enough. We don't need to continue our reputation as being a tax hell with this kind of bill.

No New Taxes!

Comments

Instead of this sillines, I think they should just exempt groceries from the excise tax. Really. Works in other states. As for the increase in the excise tax, I'm partly opposed to it on that grounds that it'll make tax harder to figure in your head and partly on the ground that I don't trust Hawaii legislators to brew coffee right, let alone set up and properly maintain a special fund.

I'm all for the concept (more money for schools, yay!), but I worry about implementation.

In addition to all that, the excise tax is the most regressive of all taxes; it hurts most those who can afford it least.

To make matters worst, Mayor Jeremy Harris and most of the City Council is backing a property tax increase. Do we really need to pay more taxes for the mayor to erect more costly monuments to himself and pay for more movies and sunsets on the beach. The private sector does well enough with movies and we don't need government to be throwing beach parties for us. I am sure most people can party on their own.

On top of that, there is a bill that is still alive calling for a LONG TERM CARE TAX that is to be deducted from all of our paychecks on a monthly basis... this is the so-called "Vicky" tax bill that has found a new life since the former Governor and his wife have long since exited Washington Place... the sad fact is that their miserable legacy in the form of this bill lives on through the efforts of the Democrat Party legislators.

Can anyone say TAX HELL??

There will be a NO NEW TAXES RALLY this coming Thursday, April 17 from 6 to 10 a.m. at the State Capitol Rotunda. Rick Hamada from KHVH 830 Talk Radio will be broadcasting live with a number of guests and YOU, the public who are against the insidious tax increases being proposed by the legislature.

More information at:

NO NEW TAXES HAWAII

Several bills are still alive which are designed to increase the general excise tax, charge you a payroll deduction tax for long term care, give the counties the power to levy an additional sales tax on top of the general excise tax we already pay on every purchase and to increase the motor vehicle registration fees to pay for neighbor island emergency medical services. These new taxes will further cement Hawaii's reputation as a lousy place to do business and possibly even live.

I haven't even taken into account the property tax increases and fees being proposed by Mayor Jeremy Harris for the City and County of Honolulu.

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