Wednesday, February 8, 2023
Hawai'i Free Press

Current Articles | Archives

Thursday, May 26, 2011
$600 million in New Taxes
By Grassroot Institute @ 9:59 PM :: 6034 Views :: Energy, Environment

by Frances Nuar, Grassroot Institute

The desperate dance to balance the state budget was trickier than ever this legislative session. Far from providing innovative solutions, the Democratic led legislature had one answer to solve the $1.2 billion budget deficit: tax, tax, and tax some more, to the tune of $600 million.

Proposals to raise the general excise tax 25 percent fell through after stiff opposition from both businesses and individuals, both determined to maintain the already high cost of living at the status quo.

Yet opponents to the general excise tax increase didn’t claim complete victory. Senate Bill 754 suspended GET exemptions on many businesses, a de facto tax hike sure to be felt by both businesses and consumers. Given the anti-business climate in Hawaii, most businesses already operate at very low profit margins. Businesses must pass added costs on to consumers to stay viable, further increasing the already high cost of living.

Among the GET exemptions withdrawn was on any business involved in the “loading or unloading of cargo.” Given the geographical realities of Hawaii, this will necessarily translate into higher prices on all commodities, almost all of which are shipped in.

Senate Bill 570 caps itemized deductions and eliminates the deduction for state taxes for incomes over $100,000 per year for individuals or $200,000 per year for a joint return. Repealing the deduction increases the amount of income subject to the state income tax, resulting in an even higher tax bill.

The list of tax increases only continues:

Senate Bill 1328 raises the annual vehicle registration fee from $25 to $45, while Senate Bill 1329 raises the annual state vehicle weight tax a dollar per pound on average size cars, from 0.75 to 1.75 cents. These bills combined will add almost $60 to the average registration bill.

For those that do not own a car and rent as needed, House Bill 1039 will raise the rental vehicle taxes from $2 to $7.50 per day. Traditionally designated entirely to the state highway fund, $4.50 of the tax hike will be directed to the general fund.

Senate Bill 1186 applies a daily Transient Accommodation Tax of $10 to rooms provided for no charge, whether complimentary or earned as part a rewards program.

These $600 million in increased taxes come even while state legislators might be finagling a pay raise for themselves—if House Bill 575 is vetoed on constitutionality grounds, legislators would get 12 percent pay raises, administrators 17 percent, and judges a 28.5 percent increase in salary.

Governor Abercrombie promised “A New Day in Hawaii”. Seems like business is same old, same old.


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni


Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii


Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii