Governor’s Administration Contradicting Itself on Tax Issue

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The state of Hawaii Director of the Department of Taxation writes in a story in ”’Hawaii Reporter”’ on July 11, 2005:

“The state has the money to fund this tax relief. The relief is warranted. The time is right.”


See oped entitled “Tax Relief Can Be Implemented Now”

If the state has money to fund tax relief, why is the administration imposing a new tax on the public by not vetoing an increase authorized in the GE tax via HB 1309?

Everyone knows that the GE tax is the most regressive and deceitful tax in Hawaii. Deceitful because it hides the fact that a 4 percent GE tax is equal to a 12 percent straight sales tax. If there is one way to aide the poor it is to reduce the GE tax ”’not”’ increase it.

Is the Tax Department so blind that it cannot see beyond the receipts coming in the front door? They need to look at how the “system” really operates and hurts the lower income taxpayer before suggesting ”’tax relief”’ and playing the part of Robin Hood by handing out small adjustments to the standard deduction that has not been changed in 20 years.

The state seems to operate like the man who kept hitting his head against the wall because it felt so good when he stopped. When will we learn that poverty in this state is self imposed?

”’Paul E. Smith, a Honolulu resident and member of the board for the Grassroot Institute of Hawaii and the Tax Foundation of Hawaii, can be reached via email at”’

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