Small Business Hawaii | Volume 23 Number 5 | May 1998
Sam Slom is also a State Senator from the 8th District (Waialae Iki to Hawaii Kai)
and has a website at this URL: http://hotspotshawaii.com/sam/slom.html
Sam Slom is also a State Senator from the 8th District (Waialae Iki to Hawaii Kai)
and has a website at this URL: http://hotspotshawaii.com/sam/slom.html
The state's largest banks, public employee unions, and most powerful politicians, are on the verge of a stunning political defeat in their 6-month, half-a-million dollar effort to ram a General Excise Tax increase down the throats of Hawaii's small businesses, the poor, retirees and those on commissions. The Governor's Economic Revitalization Task Force (ERTF) has tried to convince the public more pain for them with more gain for the ERTF members, is a good thing. The public is smarter than politicians give them credit for and haven't bought it. But it goes far beyond the 60 proposals originally billed as a method to "jumpstart" Hawaii's economy which has been in the tank since 1990. It was geared from the start to re-elect the incumbent Governor and keep the 40-year political stranglehold by the Democratic Party/Public Union alliance in power. Now, change -real change -has a chance with the defeat of the ERTF tax hike, but watch for the Governor and his supporters to try and blame legislators, and groups like SBH, for the failure to "jumpstart," or "revitalize" Hawaii's economy. Several ERTF Task Force members threatened publications and individuals who oppose their tax plan with a boycott of advertising, compensation for services, or political support. First target was Pacific Business News who had the guts to report on the "best rally money could buy" on April 6. Kauai business publications' head, and former small business awardee, Gary Hooser, was blackballed next. A lot of last-minute political arm-twisting goes on as we go to press. Duty Free Shops missed more payments to the State under their monopoly contract and reportedly is $22 million in arrears. No matter, DFS, an ERTF member, still found $50,000 to contribute to the ERTF propaganda media blitz. Now if your business owed the State $.... What a difference reaching in your own pocket makes: for years, part-time teachers were allowed to claim unemployment compensation (UI) when the school year was pau. They received UI payments while on vacation and not teaching. Last year the Legislature required the Department of Education (DOE), not the Department of Labor, to pay the UI benefits out of their budget. The tab? About $650,000. The DOE took claimants to court, arguing part-timers and substitutes don't deserve UI. A court ruled against the DOE last month. Hawaii also rewards strikers with UI. With an attitude problem, children being maimed and murdered while under its responsibility, and $40 million in welfare overpayments and $5 million more in QUEST wrongful payments, the State Department of Human Services is in the spotlight-again. Director Susan Chandler says her department is best in the nation for only wasting $45 million out of $3.6 BILLION disbursed, and "that isn't bad." Chump change? Only the taxpayers are chumps. No more studies are needed; Chandler should be removed. A new Governor will be able to clean house using the excellent, but non-implemented, Auditor Reports as a starting point. More than $100 million has been wasted by several state departments and that is a primary reason why no tax increases are needed; just accountability and responsibility for the peoples' tax money. Honolulu Police Department cops showed up in force April 23 at City Hall to protest cuts in their overtime pay. Watch for a possible police union competitor to SHOPO. Gary Rodrigues' garbage guys refused to haul trash, also demanding more money. The state's largest financial institution, Pacific Century Financial Corp., parent of Bank of Hawaii, voted at its April 24 annual stockholders meeting, to reorganize as a Delaware corporation. This is the same bank that cosponsored the infamous "Thumbs Up!" campaign, whose CEO hosted the Democratic Governor at a $1,000 per plate fundraiser at his home, then led the ERTF efforts to raise the GET tax while advocating cutting its own franchise and corporate taxes by 50%. What does Delaware offer? Ask those banks currently engaged in mega-merger/acquisition fever. Hawaii's largest microbrewery, Kona Brewing,on the Big Island relocated its major facilities to Portland. It will still bottle beer for the local restaurant and visitor market in Kona. Several SBH members set to run for office; longtime volunteer/leader, Cindy Rasmussen announced as a Republican for the 13th District Senate (Kalihi). You go girl! Sorry to report that Kenny Lum's Spaghetti! Spaghetti! restaurant in the Royal Hawaiian Shopping Center will close May 31 after a successful 11-year run. Lum, a volunteer Director/Treasurer of SBH, is a legend in the local eatery business, starting with Randy Lee at the old Halekulani, then operating the Princess Garden Cafe and the innovative pasta place that was the first to feature an "all-you-can-eat $3.99 buffet. Revenues were there, but costs - taxes, insurance, mandates, fees and rent - made it economically impossible for Lum and his 45 employees. His last event was sponsor in the locally-produced Miss Universe Pageant. Thanks for the memories, Kenny! May 21 is the SBA Awards honoring successful small businesses who have survived. We can all celebrate their success. The Legislature is pau and campaigning begins in earnest. Remember In November!
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Editor: Sam Slom
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