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Thursday, October 2, 2014
Small Business Protests Ige's GE Tax Hike
By News Release @ 4:54 PM :: 3762 Views :: Taxes

Throwback Thursday: Small Businesses Railed Against Ige's 25% Excise Tax Hike Plan

News Release from Hawaii Republican Party October 2, 2014

This week's Throwback Thursday takes a look back to when small business groups testified directly to Senator David Ige against his plan to raise Hawaii's General Excise Tax 25% higher across the state because it would crush the economy.

Despite this, Senator Ige continued to push the bill that would so obviously hurt families and small businesses already struggling with the cost of living in Hawaii until his own party struck it down.

"Instead of having the government live within its means, Senator Ige tried to raise the most burdensome tax for families and small businesses in Hawaii another 25 percent. Senator Ige's policies have had their chance over the last four years, and it's abundantly clear that a new direction is needed to lower the cost of living and get Hawaii back on track." --Ted Kwong, Hawaii Republican Party Communications Advisor

TESTIMONY TO CHAIRMAN IGE:

Hawaii Chamber of Commerce: “An increase in the GET will hurt business in Hawai'i. Until and unless all of these efforts have been thoroughly exhausted, the Chamber can not support even a temporary increase in the GET.” (HB793 SD1 Testimony, p.38, 4/6/11)

NFIB Hawaii: “NFIB Hawaii finds that the repeal of many of the general excise and use tax exemptions proposed by this legislation will hinder the economic growth of small business, which is a primary job provider in Hawaii. The proposed legislation will also have the unintended consequence of raising the cost of goods and services for Hawaii consumers who are already struggling with high unemployment rates and inflated costs.” (HB793 SD1 Testimony, p.39, 4/6/11)

Retail Merchants of Hawaii: “Increasing the GET / USE TAX from 4% to 5% effectively raises operating costs for business and the cost of living for consumers. Hawaii's residents will be forced into even further cut-backs in their already strained budgets. A tax increase in a recession is just not good economic policy.” (HB793 SD1 Testimony, p.51, 4/6/11)

Hawaii Food Industry Association: “Everyone is hurting due to increasing shipping costs, healthcare costs, administrative costs and a bad economy. Increasing taxes at this time will only serve to lower consumption, reduce sales, force layoffs, increase the load on our welfare system and worsen the recession.” (HB793 SD1 Testimony, p.59, 4/6/11)

Honolulu Japanese Chamber of Commerce: “We believe that job creation by both large and small businesses is the only real solution to economic growth. This will only be achieved if consumers begin to spend more at local establishments. Unfortunately, a GET increase would be counter-productive towards achieving this goal. In some instances, it could even lead to further staff reductions by our member businesses.” (HB793 SD1 Testimony, p.99, 4/6/11)

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