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Honolulu Mayor Holds Pep Rally for Passage of Record Tax Increase
News Behind the News
By Malia Zimmerman, 8/24/2005 4:20:29 AM

Honolulu Mayor Mufi Hannemann hosted a rather unusual bill signing yesterday for Bill 40 -- the bill that raises the General Excise Taxes on Oahu by 12.5 percent.

In the center of city hall, surrounded by supporters, including Council Members Nestor Garcia, Gary Okino and Todd Apo; Democrat state lawmakers, U.S. Sen. Inouye’s chief of staff, and construction union workers who held signs saying "rail now," Hannemann held sort of a pep rally for the record tax increase. The only element missing were cheerleaders in a "be happy we are raising your taxes for your own good" uniform.

But there were plenty of political speeches about what the money could be used for -- including building a multi-billion dollar rail system from West Oahu to the University of Hawaii.

Council Member Nestor Garcia seemed to give the eulogy for the last tax-increase-for-rail-proposal that died by one vote in the Council in 1992. While Council Member Gary Okino, as he does each time he speaks, talked about how he’s been a "professional planner for 40 years" and all along fought for rail.

Most conspicuous were those not in attendance including Honolulu City Council Members Ann Kobayashi, Rod Tam and Council Chair Donovan Dela Cruz, who were considered the key votes that pushed the record tax increase through.

Also missing was Republican Gov. Linda Lingle, who the mayor thanked for allowing HB 1309 to become law so the Council had the right to increase the state’s General Excise Tax to fund a transportation alternative. A move that outraged many of her Republican supporters and split the party.

After each political speech on the tax increase bill, there was loud applause from the audience, most who had testified for the bill in various hearings and who will in some way benefit from the tax hike.

The mayor also thanked the people of the county for being unselfish, and giving up their tax dollars (as if they had any choice), so the children of the future have traffic relief.

Then as if to get the tax increase party going, the mayor asked everyone to stand up, hold hands and sing "Aloha O’e," -- a song that is supposed to symbolize unity or a farewell.

That might have seemed like an over-the-top celebration for the largest tax hike in Hawaii’s history, especially when Hawaii already has the overall highest taxes in the nation, but the pep rally participants jumped in line.

After the tax hike festivities, the mayor answered a series of questions from the media.

He noted the debate over whether the tax should be increased was over, and now it was time to move on to decide what alternative transportation system the $150 million expected to be collected each year should be spent on.

He also said the neighbor island counties, some who were quoted in a recent newspaper article about the problems the tax increase on Oahu would cause for them, better be supportive of Oahu’s plan. (Or else what? No media asked)

While the mayor talked about ferry systems, an improved public bus system, HOT lanes and the state’s plan to build an alternative road over the freeway where traffic is the worst, as possibilities for the funds, there was no ignoring the pro-rail signs all around the mayor.

But despite all the talk about rail, the speeches about rail and the signs promoting rail, the mayor says he will keep an open mind. He says he will listen to what the people want before committing the city to what would amount to the biggest public works project in the history of the state.

When asked why the public should feel like they will be heard when thousands wrote to the governor, Legislature and Council to oppose the record tax hike and were ignored, the mayor said he noted more support for the tax hike at the final vote of Bill 40, than opposition. We counted, he said, referring to proponents of the tax verses opponents, and there were more people in favor of the tax at that final hearing. That is what we paid attention to, he said.

The news wasn’t all bad for those who want to keep more of their hard earned dollars and want tax relief. Hannemann also signed Bill 6, CD, a property tax relief bill into law, which as of July 1, 2007, provides relief to more homeowners on Oahu by raising the income ceiling and lowering the tax liability threshold.

Critics, while happy there is a tax relief bill that passed for some in Hawaii, say the GET tax hike is one of the most damaging in the state’s history because it taxes basic medical services and food and affects the poor the most. With the exception of one diehard, the critics were absent at the tax hike pep rally.

Reach Malia Zimmerman, editor and president of Hawaii Reporter, via email at mailto:Malia@hawaiireporter.com


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