New Taxes & Fees Contribute to Higher Cost of Living in Hawaii

THE COST OF LIVING IS INCREASING IN HAWAII ON JULY 1

"Prepare for Life to Get a Lot More Expensive" proclaims an article in the Sunday Honolulu Star-Bulletin. Writers B.J. Reyes and Richard Borreca point out:

The start of the new fiscal year also launches a slew of tax and fee increases passed by lawmakers who faced some of the toughest budgeting decisions anyone can remember.

It all means less money in everybody's wallet -- .....

Tax and fee increases come on top of hiring freezes, spending restrictions, program cuts and other cost-cutting moves made at state and county levels in an effort to stave off even more tax hikes.

Read the entire article at this link.

Meanwhile the folks at the Hawaii Republican Assembly and Overtaxed Hawaii are preparing for a massive anti-tax rally that is to take place at the State Capitol on Tuesday, July 14 starting at 5:00 p.m. The entire press release for the upcoming rally is posted below:

PUBLIC RALLY TO DEMAND - NO MORE TAXES!!
STORM THE CAPITOL ON BASTILLE DAY

Lee Iacocca just wrote a book Where Have All the Leaders Gone.

In the book he notes: "If I've learned one thing, it's this: 'You don't get anywhere by standing on the sidelines waiting for somebody else to take action. Whether it's building a better car or building a better future for our children, we all have a role to play. It's not too late, but it's getting pretty close. So let's shake off the crap and go to work. Let's tell 'em all we've had 'enough.' It's our country, folks, and it's our future. Our future is at stake!!

The 2009 Legislature raised taxes and fees on all Hawaii citizens. The Legislature sent the Governor three tax bills and the Governor, who vowed NO NEW TAXES, vetoed the three tax bills. A few days later, Legislators over-rode those veto's and stuck taxpayers with huge price and fee increases by:

• Increasing property conveyance taxes - even on low cost housing projects;
• Raising the tourist hotel transient tax 28% over two years;
• Making Hawaii #1 highest income tax state in the nation with a 11% rate;

Our State Legislators and the Governor have one more chance to take even more money out of citizen pockets. Many tax and fee increase bills are still pending signature or veto by the Governor; so citizens can still make a difference! The Governor must take action by July 13 and the Legislators will meet on July 15. We ask the Governor to veto all tax bills.

The July 14 "Storm the Capitol" rally will demand that Legislators NOT over-ride any bills vetoed by the Governor. The stakes are high! Expect the Legislators to be tempted to over-ride, in particular, HB1271 that creates a new program during times when existing programs are underfunded.

Raise oil taxes and a huge increase in the cost of living will result from HB1271

The Barrel Tax.

The group that organized the Tea Party was Overtaxed Hawaii and they are urging all citizens to request that the Governor veto HB1271. Once the bill is vetoed;

Overtaxed Hawaii will ask all Legislators to sustain the veto during a rally July 14 5-7 p.m. in the Capitol Rotunda.

The Barrel Tax must be vetoed by the Governor and then the veto must be upheld in the Legislature.

Why is HB1271 "Barrel Tax" literally the straw that will break taxpayer backs?

• $4/gallon gas coming soon. As of June 30, 2009 the ethanol GE tax break on fuel expires. As of July 1, 2009 when the GE tax will be charged on gasoline whether it contains ethanol or not the per-gallon price will increase by at least 10 cents and raise about $40 million for the Hawaii tax collector. This increase is coming just at the peak of the summer oil price rise. Gas prices in Hawaii will certainly pass $4 after the GE tax is reapplied to gasoline and there is nothing the public can do about this increase; it is locked in!
• Gas, diesel for trucks, aviation fuel for airlines, & oil for electricity will increase by 2.5 cents per gallon if the barrel tax is implemented ($1 per barrel increase plus GE tax);
• Electricity rates, already the highest in the nation, will rise $2 for every 1000 kwh used. Think stores, offices, houses, street lights, etc. everything that uses electricity will see an increased cost of $2 for every 1000 kwh used. Over 5 billion kwh are used in Honolulu alone. The Barrel tax will increase the cost of that electricity by $10 million just for Oahu; imagine the other islands where electricity is even more costly.
• Tourists fly into Hawaii and planes need to refuel. Add 2.5 cents per gallon and airlines will not be able to discount their flights to Hawaii. Airlines will pay at least $9 million more for fuel because of the Barrel Tax.
• Transportation – trucks and ships deliver everything in Hawaii. Costs will increase by 2.5 cents per gallon and those increased costs are multiplied more when the GE tax is added on top of the delivery bill!

What could happen in September if state revenues continue to be weak?

The rally is important so that citizens can send two messages to the Legislature:

1. Do not Override Any Veto; and
2. No More Taxes.

Without a strong showing (i.e. thousands!) by citizens to send a clear no more taxes message to Legislators; expect politicians to re convene in September and raise the GE tax. Yes, the Legislators have not yet gotten the message that increased taxes do not create one new job. The rally will send the message that it is jobs that are required during these tough economic times; not more taxes.

(end of press release)

Who is the Blame for all of the tax and fee increases?

Democrats mostly, in both the Hawaii State Legislature and the Honolulu City Council. They make up the overwhelming majority in both bodies and set the spending and tax agenda for the public. Almost all of the tax increase legislation were started by Democrats and supported by the majority of Democrats in both the legislature and council. Surely some Republicans defected from time to time on the tax issues. However there are so few of them, that they can't shape policy.

It is Democrats who set the agenda on where the money is spent, how it is spent and where it comes from. The where it comes from part is the worst. Look at the mirror. Yes, the money is coming from you and I. Being sucked out of our wallets by the policies and power of the Democrat majority. From the top of the Federal Government all the way down to the state and county levels.

The tax increases are very bad for individuals, families, tourists and business in this down economy. The added cost will only add to our economic burden. We will have less money to spend on what we need and want. Blame the Democrats for this.



Additional Links

• Prepare for life to get a lot more expensive, Honolulu Star Bulletin, June 28, 2009
• Overtaxed Hawaii
• Hawaii Republican Assembly

Photo captions: (Top photo) Hawaii motorists will be paying more than 4 bucks per-gallon of gas in the near future as our tax burden for the valuable fuel increases on July 1. Blame Democrats for forcing gasoline dealers for including ethanol in our gas and letting the GE tax exemption on that blend to run out. (Above) - Get ready to once again save our future by opposing even more tax increases at the Hawaii State Capitol on July 14.

Is There Any Good News?

Matson and their labor unions have come to a tentative agreement with their contracts. The Kailua 4th of July fireworks show has been saved, thanks to last minute community efforts and funding.