Friday, January 27, 2023
Hawai'i Free Press

Current Articles | Archives

Wednesday, October 12, 2016
Why did Governor Ige get an F for fiscal policy?
By Grassroot Institute @ 11:15 AM :: 4133 Views :: Hawaii Statistics, Taxes

Why did Governor Ige get an F for fiscal policy?

by Aaron Lief, Grassroot Institute, Oct 11, 2016

Governor David Ige scored an “F” in a national Fiscal Policy Report Card, issued by the Cato Institute, which graded the governor of every state based on state budget records. Governors who cut taxes and decreased state spending received the highest grades, while those who increased taxes and spending received the lowest.

screenshot-objec-ige

Ige scored poorly primarily because of his proposed tax and spending increases. General fund spending rose 7% in 2016, and the Governor proposed a 12% increase in spending for 2017. In total, Governor Ige increased spending by $1.8 billion since he took office. The biggest increases went to Human Services, Budget and Finance, Education, and Transportation.

Source: Hawaii Dept. of Budget & Finance, Adjusted for Inflation

Governor Ige also received a poor grade for proposing large tax increases to pay for the spending spree, adding to Hawaii’s rising cost of living. Proposed tax increases would make owning a car more expensive, and increase the price of gas at the pump.

Hawaii families may see more of their hard earned tax money spent on growing government bureaucracy under Governor Ige’s proposed budget for 2017. As you can see from the chart below, the tax dollars would grow government spending, which isn’t necessarily a good thing.

Source: Dept. of Budget & Finance, Adjusted for Inflation

When spending goes up, Hawaii families have to pay for it. As the saying goes, there ain’t no such thing as a free lunch. Is it worth raising taxes on Hawaii’s working families just to pay for even more government bureaucracy?

Throwing money at a problem doesn’t necessarily fix it. Take the Department of Transportation’s exorbitant spending, which is set to increase by almost $127 million under Governor Ige’s plan. The increase seems unnecessary, as the department already spends $203,937 per mile of roadway–among the highest in the country–for the fewest amount of roads, and our highway performance still ranks at the very bottom.

Source: Reason Foundation 21st Annual Highway Report, 2012

When an individual spends their own money on a good or service, the tendency is to acquire the highest quality product for the lowest price. Conversely, when government officials spend other people’s money on a good or service, there is little incentive to search for high quality or low price. Because of this, allocating more money to a department that is performing poorly isn’t likely to yield the results that taxpayers want to see, though it does allow politicians to claim that they helped.

However, it should be noted that the Governor Ige’s proposals to pay down Hawaii’s debt for pension and healthcare unfunded liabilities may be a step in the right direction towards making Hawaii’s economy prosper, just so long as the catch-up payments don’t involve even higher taxes.

Government does play an important role in society; however, it is the responsibility of citizens to keep government in check. When there is a problem, systemic changes need to occur within Hawaii’s government agencies, and smart policies need to be adopted. As Hawaii’s government continues to grow, and tax hikes become ever more prevalent, we must ask ourselves: are these tax increases necessary? Or could lower taxes be the key to helping hard working families prosper?

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT