Tax Hike for Rail?

[craigwatanabe]

Re: Tax Hike for Rail?

Firstly I'm STRONGLY opposed to any GET increase. I have tried
to drill that home with my legislators. GET gets applied to any service, product
you purchase here in Hawaii. Besides that I don't want to be financing something on Oahu.... gimme a break....


"Aaron, remember your thread on Home Depot on DHHL lands? Wasn't there an issue with High-cost loop phone service and a waiver that allowed that other company to come in and provide phone service there? What was that waiver for? This is regarding Miulang's comments on the cost of phone service.


I don't know how this fits into the GET increase discussion, but for starters...
it wasn't about Home Depot on DHHL lands. It was about Home Depot using
Sandwich Isles Communications for telephone service.

I'm strongly opposed SIC project on the grounds it is a waste of taxpayer funds and the fact that after complete it will create a disparity between
DHHL and non-DHHL lands. DHHL lands will get Fiber-optic connections to the home while non-DHHL areas won't have FTTH.

Part of it was Sandwich Island Communications' filing for a waiver to allow High Cost Loop phone service on DHHL lands and that Verizon was fighting it because they were given the go ahead by the State to provide statewide telephone service and that included DHHL lands.

How it relates to this topic is the way phone service is partially subsidized by Federal grant monies to help areas where phone service would be cost prohibitive due to the small pool of subscribers. Miulang speculates that although Honolulu pays the brunt of Verizon's phone service statewide, the outer islands benefit from Honolulu's deep pockets. But does this waiver make that speculation moot? I don't know.

[Moto]

Re: Tax Hike for Rail?

First off the GET tax isn't a sales tax as we all mistakenly apply. Second yes our sales tax is lower than most, however it's the cost of goods due to shipping which makes products here higher than the mainland average prices. Raising the GET will burden those Title I families who have little income to spend. My feeling is if we do raise the GET, then we exempt things like food and prescriptions alone so the poor can afford to eat and be medicated.

Craig, I understand that the GET is not the same as sales tax. That's why I suggested that we raise the sales tax. If Title I families will get hurt, we make the adjustment at tax filing time or possibly raising food stamp allotment by the sales tax hike if it can't be fixed by tax filing. Yes, you will be out of some cash up front, until you file for your taxes, so you make an adjustment on what is taken out of your wages for taxes. Bottom line, I am tired of paying for other states' programs when I visit them and don't have their residents pay for our programs when they visit us.

[pzarquon]

Re: Tax Hike for Rail?

Bottom line, I am tired of paying for other states' programs when I visit them and don't have their residents pay for our programs when they visit us.

Care to elaborate? I'm not sure I understand. Tax revenues from visitors are a big chunk of the pie, I thought... especially considering the huge Transient Accommodations Tax (TAT).

Meanwhile, here's a story from today's Star-Bulletin:

Hawaii ranks first among states in taxes per capita

Hawaii has the highest per-capita state tax collection in the nation, according to figures released yesterday by the U.S. Census Bureau... The data from the 2004 Annual Survey of State Government Tax Collections found that per-capita taxes collected by states averaged $2,024 nationally. Hawaii recorded $3,048 in per-capita taxes collected, followed by Wyoming, $2,968; Connecticut, $2,937; Minnesota, $2,889; and Delaware, $2,862... One reason Hawaii's per-capita tax take is high is because it is the only state that funds public education. In other states, schools are funded by local property taxes. "It's kind of like looking at apples and oranges," said Linn Garcia, a tax specialist with the state Department of Taxation.

[Moto]

Re: Tax Hike for Rail?

What I am advocating for is a raise in the Sales Tax to say 7% from 4%. But to balance that off, when you file your Hawaii State Income tax, you will receive a larger exemption (that proposal was introduced yesterday for the GET proposal), large enough to offset the additional 3% a resident would pay. In a perfect world, it would be a wash for local residents that pay taxes. The plus would be that visitors to our islands will also pay the tax, but since they do not file for Hawaii State Income taxes, their contribution will be what the state essentially uses to fund a special program. Essentially, it is a tax hike but only for non-Hawaii Residents. Is 7% unreasonable? I pay 8% when I am in California, 6% in Nevada. I am not sure what it is at other areas, but I don't think 7% is unreasonable, provided the adjustment is given when I file for my taxes. Hope this clears things up. I also understand that this may not be the perfect solution, but I would like to think this is a step in the right direction.

[mel]

Re: Tax Hike for Rail?

The Hawaii General Excise Tax is NOT a SALES tax. You cannot raise a Sales tax if we do not have a sales tax. We have a general excise tax and the proposed raise is for that. Whatever taxes get raised, the bottom line is that there is MORE MONEY out of your pocket now. NO NEW TAXES!

[Konaguy]

Re: Tax Hike for Rail?

I'm a bit baffled Hawaii doesn't have a Sales Tax. We do have a General
Excise Tax which is nothing like a Sales Tax. GET applies to any purchase,
service made in Hawaii. If it moves it will be taxed by GET.

[Konaguy]

Re: Tax Hike for Rail?

Miulang speculates that although Honolulu pays the brunt of Verizon's phone service statewide, the outer islands benefit from Honolulu's deep pockets. But does this waiver make that speculation moot? I don't know.

Well that may be true as 90% of the 707,000 Verizon Hawaii landlines are in urban Honolulu. But the FCC waiver for SIC is allow it to tap the Universal
Service Fund to build their network. If the FCC pulls it SIC won't be able to
build their network.

SIC claims DHHL areas are underserved. They were able to convince the FCC
and USDA RUS of this fact. Hence why they qualified for the USF/USDA RUS
funding.

[Miulang]

Re: Tax Hike for Rail?

I don't understand why the State of Hawai'i has GET instead of a sales tax either. Here's the definition of GET from the Hawai'i Taxpayer's Foundation. And then this year, there's a "depyramiding" on certain services for the calendar year 2005 and then 0.5% in 2006 and thereafter. Is GET more like VAT in Canada?

What I also don't get is why the State collects the money to fund public education. Why doesn't it reduce the GET and let the cities and counties levy property taxes to fund schools in their areas as well as public transportation?

Everywhere else, property taxes fund public education, and those are levied by county. Up here, we don't pay sales tax on most food in the markets or prescription medicine. We do pay sales tax on restaurant dining, beauty parlors, liquor, cigarettes, etc. We also have no personal state income tax, but that's the reason why our county sales tax (8.8%) is so high. I would almost rather have a WA state personal income tax of say, 4% and a sales tax not to exceed 4.8% (so the net result is our tax base would increase while our tax to consume goods would go down). That way, we wouldn't get nickle and dimed by the gas tax, the monorail tax, the light rail tax...etc. And I could get back some of my state sales tax money on a tax return. Right now, I can only claim a portion of the sales tax I pay and then that exemption goes away after this year.

You could also start a State lottery. Money collected from that could go into your State general fund or help fund public education.

Miulang

[Konaguy]

Re: Tax Hike for Rail?

Since education, transportation etc are centralized with the State of Hawaii.
Thats why the state of Hawaii funds education here for example. I believe
we are the only state with a centralized school system. On the mainland
its on the city and county level that funds education.If we wanted to
change things a good start is to abolish the centralized education system we have and give it to counties.

[DaveNSoKona]

Re: Tax Hike for Rail?

P.S. Here is a question to the neighbor islanders who think it unfair to spend $900 annually on a service that they can't use: what if you paid the $900 annually to your own county government so they could beef up public transportation on your island? Would that be more palatable? Because you know you have traffic problems, too.

That wouldn't matter here on the Big Island because most of the DOT money goes to pay for four lane highways in Hilo. So Kona residents are used to paying for services we don't get to use (much, or at all).

I am surprised at Hawaii, being a democratic (blue) state having what is generally considered a regressive tax as the GET (AKA sales tax). Then again, I was surprised it took so long for Hawaii to pass a bottle bill.

OT: I recently read that the contractor that provides a dumpster for Milolii refuge transfer station gets $7000/month!! Serving a very generous estimate of 700 people. As far as I can see that and similar cronyism spending has been the legacy of a Democratic Party here in Hawaii.

Thinking out load: ‘Anytime an alternative to Federal Income Tax is suggested, like a national sales tax, it is always shot down for the reason it is a regressive tax. Maybe someone can enlighten me here. Don’t people with more money buy more things and therefore pay more tax? How is that regressive?’

I don’t endorse either party BTW. I think each party has it faults and have little to recommend them.

To answer your question. No I don't think neighbor islanders should pay such a large bite to support the rail project on Oahu.

The subject of taxes is ludicrous to me considering congress voted overwhelmingly to repeal the Spanish-American War excise tax on telephone service (circa 1898) only to be vetoed by President Clinton. Now the IRS wants to expand it to VOIP services!!!

[Konaguy]

Re: Tax Hike for Rail?

T Now the IRS wants to expand it to VOIP services!!!

Actually it is the FCC not the IRS who handles telecom regulation...

[Moto]

Re: Tax Hike for Rail?

The Hawaii General Excise Tax is NOT a SALES tax. You cannot raise a Sales tax if we do not have a sales tax. We have a general excise tax and the proposed raise is for that. Whatever taxes get raised, the bottom line is that there is MORE MONEY out of your pocket now. NO NEW TAXES!

Even if they adjust the tax schedule to allow a larger exemption per person? That would mean that when you file for taxes you would get your money back. If you adjust your witholding amounts, you would be able to keep your money up front.

I guess there are two issues here that are forcing this to come to a head. First, the people in support of the Rail system understand that the Federal Government is willing to put up matching funds, however, that offer expires, so there is a push for this to happen now. For the people against rail, this issue either does not affect them, will not use it, don't believe this is the best solution, or does not want a change to our GET structure.

I have been trying to suggest a solution that I thought would satisify the people against the rail. I am not sure that rail is the correct answer, will sufficient people utilize it? I would assume that the people that currently ride the bus, would use it. The function of the busses that will be used less would be to shuttle people from their community to the rail stops. I guess the State/City could initiate otehr initiatives such as staggered work times. Maybe they should lead the initiative with changing the work schedules for State/City offices/facilities, they control this.

I guess the bottom line is that the legislators see the matching funds as a bone dangling in front of them and they do not want to lose it.

[mel]

No New Taxes!!!!!!!

Conference Committee Passes GE Tax Bill

A Senate-House conference committee passed the General Excise Tax Increase bill (HB 1309 CD1) yesterday. This version of the bill will increase the General Excise Tax by 12.5%. Here is the vote count for the bill:

4/29/2005
The Conference Committee recommends that the measure be Passed, with Amendments.The votes were as follows: 5 Ayes: Representative(s) Souki, Takamine, Karamatsu, Lee, Yamane; Ayes with reservations: none; 0 Noes: none; and 1 Excused: Representative(s) Fox.

Note: Rep. Fox would have voted "yes" for this bill as he had in earlier drafts.

4/29/2005
The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Taniguchi, Inouye, Espero; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Ige.

Note: Sen. Ige would have voted "yes" for this bill as he had in earlier drafts.

4/29/2005
Reported from Conference Committee (Conf Com. Rep. No. 186) as amended in (CD 1).

4/29/2005
Reported from Conf. Com. as amended CD 1 (Conf. Com. Rep. No. 186).

4/29/2005
48 Hrs. Notice (as amended CD 1) 05-03-05.

The bill will go to a full floor vote in both houses of the legislature on Tuesday, May 3.

How can you stop this tax from happening? Call all of your legislators. Here is a link to all of the Senate and House member contact information. Call, fax or email them today! sens@capitol.hawaii.gov |reps@capitol.hawaii.gov.

Also, call Governor Lingle and urge her to not sign this bill. The Governor has vowed to sign a tax hike bill should the bill such as this one gives authorization to the counties to raise the tax.

Is Hawaii open for business? Not if this tax kicks in. The General Excise Tax increase will hurt business, hurt consumers, the elderly, the poor, tourists and everyone else who makes any financial transaction in the State of Hawaii. State or County GE tax, the money is the same, coming out from the same pockets and hurting the same people. NO NEW TAXES!


No New Taxes Hawaii | HAR - Oppose the GE Tax Increase!

[Miulang]

Re: Tax Hike for Rail?

Signed, sealed and delivered by 7 of the Honolulu City Council members yesterday. I guess you guys will get your light Kapolei light rail line soon, because Linda Lingle will probably sign the bill.

Miulang

[mel]

No New Taxes No New Taxes No New Taxes!

Money Money Money

Legislators Vote for General Excise Tax Increase Bill, Despite More Than 1,000 Letters Flooding Capitol Offices; The Decision Will Likely Lead to Biggest Tax Increase in State's History.....

Details at the Link


Trail of Tears

Hawaii's High Cost of Living, High Taxes, Have Driven Families to Leave State.....

Hawaii's General Excise Tax is harsh, and there is no doubt, it has created a trail of tears and separated Hawaii's families.

The proposal to increase the state's General Excise Tax by 12.5 percent, only makes this divide worse.

Complete text at this link

Morphing Into Governor Mazie

Gov. Linda Lingle Should Stop Acting Like the Democrats and Veto Hawaii's Legislation that Would Establish the Largest Tax Increase in Hawaii's History

Complete, painful text at this link.

If you want this tax increase to stop call, fax or email Governor Linda Lingle:

Telephone 808 586-0034
Fax 808 586-0006

Call her on the air Wednesday mornings 7 - 8 am KHVH, KAOI, KPUA, KONG radio: 808 521-8383, or toll free from the neighbor islands, 888 565-8383.

Send her an email at this link.

The bill must be vetoed ASAP!

The bill passed out of the Senate by a 16 - 9 margin with nearly all Democrats voting yes for the tax. NO REPUBLICANS voted yes.

The House was a mixed bag with 32 yes votes and 19 no votes, that cut across party lines both ways.

All this despite thousands of faxes, emails and phone calls mostly urging a NO vote to Hawaii's largest tax increase ever.

Link to Bill Status/History of HB 1309

The Case Against Rail Transit on One Page (PDF file)

Alliance For Traffic Improvement

This tax is not about home rule, it is about our aching wallets!



No New Taxes Hawaii | HAR - Oppose the GE Tax Increase!