Friday, July 12, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, December 22, 2011
Abercrombie's "Surplus" Comes out of Your Pocket
By David S Chang @ 4:54 PM :: 6876 Views :: Energy, Environment

Neil Abercrombie sees budget surplus???

by David S. Chang, Chairman Hawaii Republican Party

As reported by the Star-Advertiser on December 20, 2011 (“Governor sees surplus”), the Abercrombie administration is rejoicing over a budget surplus that enables it to spend more money.

Once again, this rejoicing is empty if you look at the factors that caused this “surplus”.

Governor Abercrombie’s budget contains a $199 million surplus by the end of this fiscal year and $235 million by the end of the next fiscal year. Where did this surplus come from? From Hawaii’s hard-working families and businesses who had to shoulder an estimated $600 million in additional taxes over these two years, due to the tax increases passed this year by the Abercrombie administration and the legislature.

Out of that $600 million tax increase, about $400 million is estimated to come from increased general excise taxes on contractors, businesses that sublease, airlines and others – most of which gets passed-on to Hawaii’s consumers and businesses as increased costs.

The impact of the tax increases on the state budget was acknowledged by the Hawaii Council on Revenues (COR) at its latest meeting on September 6, 2011. COR increased its forecast for State General Fund tax revenue growth for the current fiscal year from 11.0 percent to 14.5 percent and for the next fiscal year from 6.0 percent to 6.5 percent, noting:

“[T]he increases in the forecasts for tax revenue growth in FY's 2012 and 2013 were mostly due to new tax laws that have gone into effect this fiscal year. Without the expected revenue increase of the new tax laws the forecast for FY 2012 would have been lowered to 9.5 percent, due to uncertainties about the economy and about the number of visitors [emphasis added].”

In this weak national and state economy, working families and small businesses are struggling to make ends meet or to make payroll. Increasing costs, such as additional taxes, only makes things worse. Now government wants to spend that additional tax. We believe instead, the Abercrombie administration and the legislature should roll-back the tax increases and government should live within its means.

Republicans believe that the best budget surpluses come from increased efficiencies in government services and lower taxes and regulatory burdens that allow economic activity resulting in increased government revenues. Only when we grow the Hawaii economy, can our working families achieve an increased standard of living.

---30---

Political Radar: Roll back

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