| A cut in personal income tax ‹ effective after the November '98 election
(elect the same people who caused the problems first, then trust them
for relief) ‹ a 17% increase in the hotel room tax (remember YOU are a
tourist when you go to a Neighbor Island hotel) and a 34% Gross Income
General Excise Tax increase make the new political plan a bad package
clouding the good recommendations offered. Hawaii's GET is not a sales
tax, so don't compare the 4% rate with other states. The increase is
disguised as "economic revitalization" by the Governor's Re-Election
Task Force, and is being pushed by big business, big government and big
union members who comprised the bulk of the Tax Force. The two major
banks who, coincidentally, don't pay General Excise Tax, pay a Franchise
Tax (as do PUC regulated industries) which they cut in half for
themselves. It is comforting to hear union boss Gary Rodrigues join with
the big business leaders, to say how this package will be beneficial to
small business. Hawaii's small business community will not be fooled and
will not buy into this phoney tax "saving." There will be some,
selective reduction of pyramiding (the tax paid on top of tax) but it
will not, contrary to the propaganda, "eliminate pyramiding." The
hardest hit would be those on commissions ‹ such as Realtors ‹ and those
in services who cannot pass along a 5.35% tax. Tax cuts and government
downsizing is what is needed without any tax increase, period. This
should not be a "rich vs. poor" issue since as usual, the middle class
bears the burden. Those who worry so much about State Government
balancing "its" revenues, should worry more about the source of tax
revenues: over-burdened Hawaii family taxpayers. Finally, it was notable
that all hand-picked task force members signed their names to the
summary document, agreed to support it 100%, and would like the public
to make the comparison to the Declaration of Independence. Only problem
is, unlike the real Declaration ‹ which was a bold political and
economic document ‹ these 27 pledged YOUR "lives, fortune and sacred
honor" (not theirs) to support the political status quo. Let your voices
be heard; especially at the '98 Legislature. My self esteem is low because many people reported alleged threats from the Bishop Estate, and I received none. And me, a Bishop lessee. By the way, there is no truth to the rumor that if Henry Peters and Richard Wong are forced out as Trustees they will return to their humble previous lives: Speaker of the House and President of the Senate, respectively. And no, Robert Kekaula will not replace Elisa Yadao as Estate spokesperson. The teachers union head has endorsed a lottery to help fund education. When is the union going to get it? It's not money, but lack of leadership, accountability and creativity , and shutting parents out of decision-making as it applies to curriculum that hampers educational attainment. Gambling won't improve education here when standards are not applied. The Governor has again sent out trial balloons for a pay-at-the-pump gas tax scheme to fund mandatory auto insurance and a proposal to bundle auto, prepaid medical and work comp together. Only the state could dream up ways to make things even worse. Hooray for Fred Hemmings! Fred published, The Soul of Surfing Is Hawaiian,last month. It's a great book (and holiday gift). Fred, the former world surfing champion, has done much for the sport and for Hawaii and deserves more credit than the media attacks for his proven-right views. We sadly note last month's death of Bill Wood one of Hawaii's finest business writers. His career included Hawaii Business, founding Hawaii Realty Investor (today's Island Business) The Wall Street Journal Hawaii stringer and a popular business speaker and recipient of several SBH writing awards. Aloha, Bill. City Council member Rene Mansho's idea to change the City & County of Honolulu to "Oahu County" deserves more analysis. It would help the identity of other communities that make up the Island. We should also look at residents' requests on the Big Island to split the County in two, Kona and Hilo. Some say small business "whines" because it wants changes. They, who support the status quo, attacked critics of the Bishop Estate as "whiners" too. Is there a pattern here? We may bark, but we don't whine. Don't forget to come to the December 17 Share N' Tell Business Forum and the January 14 22nd Annual Conference featuring Linda Lingle, Governor Cayetano, Randy Roth and others. Bring two friends or clients! As 1997 comes to a close, we will remember this as the last year Hawaii had the luxury of not addressing the causes of our economic and political problems. Next year will be pivotal and a watershed year for Hawaii's future. YOU will make it happen. SBH will be with you all the way. We thank you for your continued support. Happy Chanukah and Merry Christmas to you and your family.
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Editor: Sam Slom
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