Small Business Hawaii | Volume 23 Number 4 | April 1998
Small Business Hawaii | Volume 23 Number 4 | April 1998
LEGISLATIVE BATTLE LOOMS OVER INCREASED TAXES, GAMBLING BILLS As the 19th State Legislature moves toward a May 5 adjournment, there still is a lack of direction and urgency. No meaingful economic or tax reduction reforms have passed to date. In reality, the battle continues over increasing taxes, fees and expanding the tax base. Continued bad economic news - such as major big business layoffs and the bankruptcy of Liberty House March 19 - has had little affect on the speed and deliberation of majority lawmakers who go about their political business as usual. The Governor seems paralyzed and unable to form a plan of action unrelated to his re-election campaign. THE ERTF RECOMMENDATIONS The 60 proposals of the Governor's politicized Economic Revitalization Task Force (ERTF), are not doing well either. Some died in February (consolidation, streamlining, autonomy bills). Many are worthwhile, including reduction in the nation's highest personal income tax rates, but are overshadowed by the Task Force's insistence to also raise both the Transient Accomodations ("hotel room") Tax and the General Excise (Gross Income, not "sales") Tax. The original ERTF proposal demanded a 34% increase-hurting small business, service providers and those on commissions (such as Realtors) the most. It did include a provision for partial reduction in pyramidding of the tax. Subsequently, the Governor unilaterally reduced the tax increase recommendation to 4.75% (19%) but excluded the pyramid reduction. Later, he changed position again, calling for broadening the GET base by taxing non-profits, hospitals, educational facilities and other exempt entities, and a 4.5% GET (12.5% increase). The State House passed a bill (HB 2568) to raise the GET. A list of legislators who voted for and against the tax increase is posted here. HAWAII TEA PARTY RALLY
SMALL BUSINESS REFORM PACKAGE IGNORED The 12-bill package submitted by the bipartisan Legislative Small Business Coalition, is dead. "Small Business Is My Business," the theme of the package, was ignored because political pressures insisted on focusing on the ERTF package entirely. Good bills were lost. SOME BAD BILLS TO WATCH Among bad bills to watch : (now in the Senate) HB 2568, HD1 (increases your GET) see House vote below; HB 2933, HD2, taxes exempt organizations; HB 1160, HD2, the "anti-Linda Lingle" campaign funding bill; increased fee bills, HB 3030, HB 2865, HB 3489, HB 2957 and HB 3106. Senate bills (now in the House) SB 2201, increases TAT tax to 11.5%; SB 2496 (forces non-union contractors to be unionized by "Project Labor Agreements," for certain state jobs; SB 3220, doubles Conveyance Tax; SB 2222, eliminates only a portion of vacant state jobs while violating contracts on other salary matters; SB 3088, watered down Job Reference Liability bill; SB 721, increases Small Claims, other court costs; SB 2292 transfers Special Funds to General Fund; SB 2922, "special session," and joint Capitol management; SB 2201, increases tourism costs; SB 2684, doubles size of PUC; SB 2693, doubles recycling fees. There are many others too. A FEW BRIGHT SIGNS There are a few live bills that cut taxes, define privatization and reduce government. SB 2215 (now in the House) does NOT increase your GET; SB 2450, increases business meal deductions to 80%; SB 2803, the Regulatory Reform Act; SB 2431 reduces pyramidding on subleases. Budget haggling and last minute compromise will decide. FINAL SUGGESTIONS There is still time to tell your lawmakers what you want. You can make a difference, during this Session, or in the voting booth, Nov. 3.
CAROLE KAI, RANDY ROTH HEADLINE Join SBH for 1998's second "Small Business Hawaii Sunrise" networking breakfast forum on Thursday, April 30, at 7:00 a.m., at the Pacific Club. Carole Kai, the "First Lady of Fund-raising," and University of Hawaii Law Professor Randy Roth, co-author of Broken Trust, headline our next Sunrise program. Kai, who gave up a career in show business to focus on charitable fund-raising and started the Carole Kai Bedrace in 1974, now runs Carole Kai Charities, producer of the annual Great Aloha Run, is a partner in Hawaii Stars, and will share her secrets to entrepreneurial success. Roth, renown commentator and editor of the Price of Paradise books and radio series, will update us on the expose of the Bishop Trust. As usual, there will be surprise guests, a legislative update and door prizes too! Come prepared for an hour and a half of a little of everything: great speakers on "hot" topics, useful tips from successful entrepreneurs, get-acquainted activities, a delicious Pacific Club buffet breakfast, super networking opportunities, lively discussions of community issues, fabulous door prizes, and more - all for just $12 to SBH members and their guests who reserve in advance. (The cost is $15 at the door provided space is available. Call SBH for an application form or send in the one from the printed version of the Small Business News.
SBH - CHAMINADE FASTTRAC Tired of government promises and waiting for task forces to revitalize our economy - and help your struggling business - in a year or two? Do something for yourself now! Sign up for the ultimate entrepreneurial training program to learn what you can do now to improve the bottom line in your small business. Starting Thursday, April 9, Small Business Hawaii and Chaminade University of Honolulu will offer FastTrac II to existing small businesses. Well-known small business persons and instructors Dr. Phyllis Horner and Dan Flood will conduct this excellent training in 11 three-hour classes held each Thursday evening, beginning at 6:00 p.m. To see how local entrepreneurs Jeri and Gary Barnes of Tropical J's turned their FastTrac training into a financial success, read the Entrepreneurial Profile "Dream Business Found in Paradise" on the Entrepreneurial Education Foundation web site, at www.fastrac.org. The course will is available for $499. To find out about additional funding possibilities and more information on FastTrac, call Jim Proctor, at 395-6221.
The U.S. Small Business Administration (SBA) will release the names of county and State of Hawaii winners for the 1998 small business awards April 15. The winners will be recognized by the State Legislature on April 17. Included will be Small Business Person of the Year, Woman Entrepreneur, Young Entrepreneur, Exporter, and various business advocacy awards. (A complete listing will appear in next month's SB News). Several SBH members are included among the winners. In the past, several Hawaii awardees have gone on to garner Regional and National awards.The SBA, in conjunction with SBH, NFIB, Hawaii Business League and the Chamber of Commerce of Hawaii will present the annual Hawaii Awards Luncheon, Thursday, May 21 at The Ilikai. National Small Business Week will be celebrated May 31 to June 6. The national Small Business Person of the Year will be announced at that time.
SBH AT "SMALL BUSINESS ON THE MOVE" Several hundred exhibitors, including Small Business Hawaii, are signed up for the "Small Business on the Move '98" expo, a two-day-long business trade show at the Blaisdell Center Exhibition Hall May 5-6. Attendance is expected at an alltime record. SBH member, Production- Hawaii, Inc. is the organizer of the annual event. This year's theme is, "Small Business is Everybody's Business." American Savings Bank is this year's presenting sponsor. Speakers, exhibits and promotional items will make this an event you will want to attend. SBH members who would like to volunteer for a couple of hours in the SBH booth (#417) on Tuesday or Wednesday, may contact Hyun at SBH now. Phone 396-1724.
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A major rally, "The Hawaii Tea Party '98," organized Friday, March 27 at the Capitol by KHVH radio and Small Business Hawaii, drew a crowd of 1500+ concerned citizens demanding, "No New Taxes!" Photos of the Hawaii Tea Party Tax Rally are at