COVID19 UPDATE
Hawaii

Hawaii Government Employees Union Proposes “Temporary” 20% Tax Increase

On Tuesday, March 23, the HGEA plans to march on the state capitol to support a proposed tax increase by the state senate that would temporarily increase the general excise tax from 4 to 5% on neighbor islands or 4.5 to 5.5% on Oahu, a 20% increase in the tax.

As quoted today by the HGEA,

“A temporary, modest increase in the General Excise Tax is vital to preserving the quality of life for all Hawaii residents. With 38 percent of the tax being paid by tourists, a GET is the best alternative for both short-term stimulus and long-term financial stability for our state.

Recently, leading local economists have also said that such an increase will help to boost our state economy.

Without passage of a GET increase this session, Governor Lingle will be allowed to address any additional deficit through further cuts to important public services and programs.

The legislators need to hear from YOU—their constituents! We will be organizing a Lobby Day where HGEA members and concerned citizens can visit with their lawmakers to encourage them to do right for Hawaii by supporting a temporary, modest GET increase. “

What tax payer in their right mind would ever believe in a “temporary tax increase”. This is one of the biggest frauds ever promoted to try to throw the balance off the real issue; government spending.

What part of Hawaii’s economy has suffered most over the past two years? What a great idea, increase the GET 20% so hotel operators have to try to cover the cost with room rates dropping like an avalanche. Just have the few remaining tourists pay more, no problem. How about jacking up the GET 20% on the cost of  a new house? Our flourishing contracting businesses certainly can absorb a few more losses, after all, they don’t have much of a payroll any longer because all of the workers are collecting unemployment, if is hasn’t run out already.

How about doing what businesses have had to do: Cut back, consolidate, reduce inventory, close non-producing assets, layoff all but your best core workers. The DOE is just part of the problem. They have shut down every attempt at change. Why can charter schools in Hawaii offer 200 days of instruction right now in Hawaii? They offer a different model. Why does every county have their own department of transportation to repair and maintain roads? Can’t the state turn over all of these operations to the county. The list goes on forever.

We in the real estate industry have suffered as much or more. Our income is about 50% on average of what it was in 2007. Are we all surviving? Certainly not, only the best, most innovative companies are doing well. Who is getting out the crying towel for us? Not a soul, and we don’t expect anybody to because we work every day on new ways to serve our clients better. Give them better service, deliver the information to them quicker, give them what they want and they will do business with us. If we just sit around and expect customers to walk in the door and buy something just because we have an office in a good location and work for xyz Realty, we will die.

Government will never understand how business works and how can we expect government to run like a business. We elect politicians because we like how they look, the pretty words they tell us, or because the union told us to vote for them. We get what we set ourselves up for: politicians who will do what it takes to get re-elected.

This is a great year to “Just say NO!” Don’t you love the crystal meth ads on TV right now. Just this once! Just this one time, temporary 20% tax hike and life will be just great. Let’s tell our legislators, loud and clear, No Tax Increases! You increase taxes and we will un-elect you!

Comments (2) Show CommentsHide Comments (Remember)

Cool. Add your comment...

Your email address will not be published. Required fields are marked *

Leave your opinion here. Please be nice. Your Email address will be kept private, this form is secure and we never spam you.

Trigg Williams

March 22, 2010

You wrote “Government will never understand how business works and how can we expect government to run like a business”. I find that conclusion to be such an over generalization and simplification especially since your article was about “Hawaii Government Employees Union Proposes “Temporary” 20% Tax Increase” It is not the government that is asking for the increase in taxes. It is the Union; two completely different entities and in fact advisories.

Besides using the wrong metaphor to even make such a statement about the government would like saying business does not understand how business works because of the Wall Street fiasco or that Banks don’t understand how Banks work because of all the Banks in receivership this year and last and we can go on and on including the real estate and mortgage brokers.

The pragmatic approach is to understand and try to determine which ‘business’ or services work best under different systems. There is no way you would want the Fire Department to run based upon the profit motive as you would want a VC to be run a a public service.

The fact that these Union members are marching to ask for an increase in taxes so that they can keep their current jobs or pay is no difference than you negotiating with your broker or Seller for an increase in your commission rate

Trigg Williams

March 22, 2010

You wrote “Government will never understand how business works and how can we expect government to run like a business”. I find that conclusion to be such an over generalization and simplification especially since your article was about “Hawaii Government Employees Union Proposes “Temporary” 20% Tax Increase” It is not the government that is asking for the increase in taxes. It is the Union; two completely different entities and in fact advisories.

Besides using the wrong metaphor to even make such a statement about the government would like saying business does not understand how business works because of the Wall Street fiasco or that Banks don’t understand how Banks work because of all the Banks in receivership this year and last and we can go on and on including the real estate and mortgage brokers.

The pragmatic approach is to understand and try to determine which ‘business’ or services work best under different systems. There is no way you would want the Fire Department to run based upon the profit motive as you would want a VC to be run a a public service.

The fact that these Union members are marching to ask for an increase in taxes so that they can keep their current jobs or pay is no difference than you negotiating with your broker or Seller for an increase in your commission rate

More Articles from Hawaii Life