Thursday, November 21, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, February 4, 2015
SB946: Repeal GE Tax on intermediary business transactions.
By Grassroot Institute @ 9:51 PM :: 4992 Views :: Small Business, Taxes

February 4, 2015

To: Senate Committee on Economic Development & Technology

Sen. Glenn Wakai, Chair

Sen. Sam Slom, Vice Chair

From: Grassroot Institute of Hawaii, President Keli’i Akina, Ph.D.

RE: SB 946 — RELATING TO GENERAL EXCISE TAX

Dear Chair and Committee Members:

The Grassroot Institute of Hawaii would like to offer its comments on SB 946, which would repeal the General Excise Tax (GET) on all intermediary business transactions.

Hawaii’s unique general excise tax is often the source of confusion—especially for those who falsely compare it to a sales tax, not realizing that it is a tax that is applied not once, but at every transaction in the economic chain. As a result, the state is frequently singled out as having one of the most burdensome tax systems in the nation.

This has had a corresponding negative effect on the state’s economy and business climate. The ALEC-Laffer State Economic Competitive Index[1] ranks Hawaii last among all states for its sales tax burden, a rating that significantly contributes to a mediocre economic outlook ranking. In a similar way, the Small Business Policy Index[2], which compares state policies and costs related to small business and entrepreneurship puts Hawaii at a dismal 47th, thanks largely to our high consumption taxes.

The broad reach of the GET has had a negative effect on our local businesses, saddling them with a burden that they would not face in other states. Some estimates place the cost of the GET on Hawaii business as high as $1 billion.

GET

It is clear that any serious attempt to improve our state’s economy and encourage investment must begin by adopting policies that would foster a more favorable climate for business and entrepreneurship. Admittedly, a repeal of the GET on intermediary business transactions would initially have a negative effect on state revenues. However, in the long term, it would bring about a healthier economy, greater investment, a drop in unemployment, and a better future for our citizens and our state’s financial future.

Thank you for the opportunity to submit our comments.

Sincerely,

Keli’i Akina, Ph.D.

President, Grassroot Institute of Hawaii

[1] Available at http://www.alec.org/wp-content/uploads/RSPS-HI-14.pdf.

[2] Available at http://www.sbecouncil.org/wp-content/uploads/2014/12/SBPI2014Final.pdf.

SB946: Text, Status

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

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 ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

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

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii