Mayor Has Facts Wrong on Tax


In his July 10 commentary, “We Must Take A Bold Step Toward Rail” Mayor Hannemann said: “Some opponents of the [rail tax] measure argue that this would represent the largest tax hike in Hawaii’s history.

Not so.

That distinction belongs to the 1963 increase, which raised the GET from 3 percent to 4 percent.”

The Mayor is wrong in several different ways:

*(1) The increase was in 1965, not 1963.

*(2) It was an increase from 3.5 percent (not 3.0 percent) to 4.0 percent.

*(3) Most importantly, the annual increase in GE tax collections at that point was about $40 million to $50 million