Ramming Rail & Taxes Down Our Throats

Fixed rail in Honolulu may become a harsh reality in about 10 to 15 years. The rail proposal was kicked into high gear last year after Governor Linda Lingle let a bill to increase the general excise tax to pay for rail pass without her signature. This was done after she had signed the Americans for Tax Reform "Tax Pledge" during her 2002 campaign to promise us, her supporters, the voters and the state not to increase taxes.

Letting that bill become law was a huge disappointment to me and many others who oppose more tax increases and fixed rail.

Upon that action, the City administration under Mayor Mufi Hanneman along with 7 members of the City Council implemented the city's authorization to collect that tax for the funding of rail or whatever mass transit proposal they finally agree on.

Today the harsh reality of that tax kicking in on January 1, 2007 came closer as the mechanics of actually collecting the tax surcharge was tentatively agreed upon by the city and state. In the end, the state will become the reluctant player in this scheme to actually collect the tax from every business and person that does some kind of financial transaction within the City and County of Honolulu. This also includes those individuals, businesses and organizations on the neighbor islands who also make transactions with firms located on Oahu.

I have long been an opponent to any tax increase and an opponent of rail transit. Rail is 19th century technology that is not needed for the island of Oahu. This is the United States of America and frankly, most of us are married to our cars, trucks, vans and SUVs. Most motorists will never give up their vehicles to suffer through the unpleasantness and inconvenience of using public transportation such as a train or bus.

Studies and estimates through several decades have indicated that about 5% of the public will actually use mass transit and that promises of a train reducing traffic congestion is nothing but a lie. The city and state can do better by not sucking more money out of our pockets and halt all proposals to have an expensive and ugly rail line built in Honolulu.

For more reading:

• Mayor Says Compromise Reached with State on Collecting General Excise Tax Hike for Rail
• Transit Tax Impasse Ends
• State, City Make Transit Deal
• The Tragicomedy GE Tax Collection Squabble
• Governor Lingle Rescinds Decision to Veto Tax Increase
• HonoluluTraffic.com

January 19, 2006 - The Hawaii State Legislature Opens

State Tax Surplus to be Battle Front at State Legislature

Yesterday marked the opening of the Hawaii State Legislature for 2006. The traditionally colorful and pompous opening day sessions in both the house and senate were filled with entertainment and pontificating political speeches. I attended the session in the State Senate.

There Senate President Robert Bunda sounded like a Republican as he indicated that the voter-citizens should get tax breaks and at least a portion of the nearly $600 million tax surplus back. He said a few things about putting aside petty politics between parties and within them, making a reference to the 10-10 leadership tie among the majority senators.

Senate Minority Leader Fred Hemmings went a step further on Bunda's theme of tax reform. He echoed the minority caucus's call for elimination of the General Excise Tax on food and medicine, something which Governor Lingle had long promised but has so far come up short in the last 3 years. Development of alternate energy, less dependence on imported oil and private-public partnerships was also on the Senate Republican agenda.

Over at the State House, the majority Democrats want to have the tax surplus used for school maintenance and upgrades.

Certainly a battle is brewing in this year's session on what to exactly do with the state tax surplus. I say give a portion of it back to the taxpayers. The money after all is ours. A tax refund, a reduction in the standard deduction or elimination of the GET on food and medicine will go a long way in helping Hawaii residents and businesses overcome the burdens of high cost associated with the increase of taxes and fees implemented by the state and counties in recent years.

In this election year it will be interesting to see what legislators on both sides come up with this session.

TAX ARTICLE LINKS

January 19, 2006 Article Links:

Older Article Links Click Here

TOP | NO NEW TAXES HOME PAGE

Copyright 1998 - 2006 | This website does not take political donations and is entirely funded by the publisher.