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Democrats in the Hawaii state Legislature are proposing to raise taxes on a variety of fronts, even though Hawaii taxpayers already pay the fourth highest taxes in the nation, and the economy and businesses continue to suffer under the state’s and city’s repressive tax and spend policies.
The tax proposals are still alive and likely to cross over to the other respective House today — crossover — despite tremendous public outcry coming in over phones, faxes and emails of legislators and on the Hawaii radio airwaves.
At a Republican minority “No New Taxes” press conference at the state Capitol Friday, around 100 people showed up to support the Republican legislators and join them in their rally cry for “No New Taxes.”
In two weeks, KHVH Radio Morning Talk Show Host Rick Hamada is planning a full-fledged rally during one of his morning live broadcasts, much like the one he coordinated in 1998 when then Gov. Benjamin Cayetano proposed a general excise tax hike.
Some of the proposals still alive in the Hawaii state Legislature:
*The state Senate passed a measure to increase the general excise tax by 12.5 percent, from 4 percent to 4.5 percent, to raise $180 million from Hawaii taxpayers, supposedly to put $120 million into education, though there is no guarantee the money will be used for education. Now the measure is before the state House. The House leadership says the measure will not pass, but those who know how the Legislature operates say no issue is dead until the close of the Legislative session at midnight, May 1, 2003.
*The state House proposed a measure to allow the Honolulu county to impose an additional sales tax of 1 percent. Gov. Linda Lingle has said she will approve the bill based on her view that she wants to give counties autonomy on all fronts, including tax options, though she says she is opposed to tax increases. Opponents say the city already has taxing powers on property and substantial revenue from fees charged for services and vehicles, and that the city should not be given additional taxing powers because the mayor has not been responsible with the money he already has.
*House and Senate Democrats say they want to pass a $10 per person per month tax on everyone from ages 25 to 99 to create a state-subsidized long-term health-care fund to care for the aging population in Hawaii. This $10 is just the start. Lawmakers plan to increase that monthly tax rapidly once the program is in place. And no one escapes — even if they leave Hawaii — so long as they own property or a business here, or work here, they will pay. Opponents say the “progressive tax,” which increases by an undetermined amount every year, will not work because there will not be enough money to pay for the long-term care of the people who are forced to pay into it. They say it is better for the community if people are given tax credits and other benefits for investing in their own long-term care private options, and let the truly poor rely on the state and federal government should they need long-term care. Gov. Linda Lingle, who maintains she will not support tax increases in Hawaii, calls this tax proposal the “cruelest of all.” That is because the tax program does not take into account anyone’s income, rather imposes a flat tax on everyone, and because it supposedly provides long-term care coverage for those in need, but will not actually do so because there will not be enough money, she says. The governor also says the money will create a “super fund” that legislators will raid to balance the state budget, as has happened historically with the state retirement fund, hurricane relief fund, rainy day fund, transportation fund and other special funds.
*The House and Senate are proposing an increase in the state’s conveyance tax and many other tax increases that have received little attention by the public and media.
Many people, including small business owners, at first were not too concerned about the tax increases the majority party in the Legislature is planning to pass because they believed the governor would veto these bills.
However, Democrats in the Legislature already say they are planning to override the governor’s vetoes — even though they have historically not overridden any governor’s vetoes (all Democrat governors) since statehood, with the exception of one under Cayetano. This is their way of challenging the governor’s authority — especially as she is the first Republican governor in 40 years and the first-ever woman governor.
With the realization the Democrats are plotting an override, many people are starting to rally against the proposed increases and have contact HawaiiReporter.com with their concerns, asking what can be done to stop the Legislative majority party from passing these tax increase bills.
The best advice likely came from the governor herself this morning on KHVH radio. She asked the public to contact their legislators through phone calls, emails, faxes and personal visits, to tell them to kill the tax increase bills and to support her education reform and government accountability legislation.
To contact legislators, click here “Representatives at a Glance” and “Senators at a Glance.”
Click here to get to the governor’s Web site at: https://www.hawaii.gov/gov/
Or to contact Gov. Linda Lingle:
Please address correspondence to: Honorable Governor Linda Lingle, Executive Chambers, State Capitol, Honolulu, Hawaii, 96813
*Phone: (808) 586-0034
*Fax: (808) 586-0006
*Email: mailto:gov@hawaii.gov
Don’t Rock The Boat
Although we are fortunate to enjoy the long awaited political change, it appears that no real change has yet occurred. At least not what I had anticipated. We read a lot about it — still — in the media but where is it? Or should I ask what is it?
Tourism is Hawaii’s most important industry to generate revenues. Tourism is down and what are we doing about it? First it was 09/11; now it’s the war. What exactly is Hawaii doing with $61 million per year to support the Tourism Industry? No one asks that the state is doing it alone. The industry works hard and takes enormous risks and is diligently trying to bring travelers to Hawaii.
The industry expects to be supported by the budget that the state has set aside to support them. But that doesn’t really happen. Or does it? In times when business is good the state’s marketing seed should be planted that can be harvested in down times. To just point to negative results and analyzing them with excuses but without being able to influence the outcome in the first place should tell us that Hawaii is lacking the experts that are so badly needed
What exactly have those state authorities done — in advance of the war — to implement strategies to offset traveler’s fears? The Japanese Market is down for some time. Not because of the war but because of changing traveler’s expectations and Japan’s own sluggish economy.
Groups running behind, flag-waving Japanese tour guides seem unpopular and individualism and activities are in. Have we — Hawaii — noticed? May be but I can’t see it. Are we willing or able to notice? Do we need more attractions? How are visitors greeted at first sight, at the airport? Do they feel our most valuable marketing tool we have, the ALOHA spirit? What do other competing travel destinations do differently that they have record arrival numbers, also from Japan, compared with previous years and despite the war?
Shouldn’t Hawaii have the experts who know what to do? On Sunday, April 6, 2003, I read in the ”’Honolulu Advertiser”’ a statement that puzzles me. Frank Haas, the Hawaii Tourism Authority’s Marketing Director, said this: “Well, there’s a very large segment of the (Japanese) industry here that as a state agency we have an obligation to. To just abandon a market, I think, would be ill-advised.”
No one recommended abandoning the Japanese market. Instead to focus on priorities, on strategies that work and to focus on more promising markets such as the U.S. mainland and Europe. We pay outrageously high salaries to the officials of the Hawaii Tourism Authority. For example there is Rex Johnson, its chair, who makes $240,000 per year.
This is mind boggling because the Hawaii Tourism Authority, HTA, is part of the Department of Business, Economic Development and Tourism, DBEDT, and its director, Theodore Liu, makes only $85,000 per year. And the chief of the state, Gov. Lingle only makes around $95,000 per year. I am confused.
Sixty-five percent of our arrivals come from the U.S. mainland. That number should justify tremendous efforts to increase and maintain powerful marketing. Even more since world travel for U.S. citizen has been limited because of our engagement in the Middle East. Let’s not just sit there and enjoy increasing arrivals without our input. What would be the arrival numbers if we had powerful strategies in place that address the war and travel fears.
We should divert part of our marketing efforts and budget to countries that would visit Hawaii if we can assure them that Hawaii is ”’safe.”’ And to emphatically point out that no incidents have occurred since the saddening 09/11 events that should prevent travelers from visiting Hawaii as one of the last true remaining tropical paradises.
Does Hawaii have intelligent strategies that could address Europe and the U.S. mainland? I am sorry but I can’t see that.
Marketing and public relations seem so easy that almost everyone likes to talk about it and to offer own ideas, strategies and advise. However this is a profession that takes skills, knowledge, expertise and specific training and continued education. And it is categorized in different fields. There is a ”’big”’ difference if I address marketing issues for certain industries or tourism, especially Hawaii’s.
A Mercedes engineer is lost working on a BMW. However both are highly skilled experts in their fields. Does Hawaii have skilled and knowledgeable experts who understand the diversified mentalities, cultural differences and most of all the expectations of our target markets?
Let’s be honest, in times when revenues are down and the main revenue maker of our precious state is behind, we should expect tremendous efforts by our industry support team. That is just not there.
So what exactly and how is the Hawaii Tourism Authority using its expertise and budget to support Tourism? After all it is still, and will remain, for some time to come the state’s number one income producer.
”’Dieter Thate is owner of Dieter’s Tours (est. 1993) and Kimapa Marketing (est. 1982). He can be reached by email at:”’ mailto:mail@kimapa.com ”’or visit his Web site at:”’ https://www.kimapa.com