Tuesday, April 16, 2024
Hawai'i Free Press

Current Articles | Archives

Sunday, February 26, 2012
10-cents-per-bag Tax: Greens, Big Business, Big Government team up to Rip Off Consumers
By Andrew Walden @ 9:35 PM :: 7659 Views :: Environment, Taxes

Feb 26, 2012: Under 2012 HB 2260 HD1 and SB 2511 SD1, a dime-per-plastic bag fee would largely go toward Abercrombie’s latest pet project--fund for watershed protection--a split between the State and enviro activists who would score contracts and jobs. The DoH/HGEA will scam $800,000 for ‘administrative’ expenses such as upgraded computer solitaire programs. Retailers would grab two cents per bag in the first year and one cent thereafter.

Retailers also benefit because enviro hype has brainwashed some consumers into thinking that free plastic bags are now actually a negative, and costly ‘reusable’ bags are a positive. Such is life in the Affluent Society. This transforms an operating overhead expense into a profit center as some or all of the $6000 per month a supermarket pays for free plastic bags is paid for by the bag fee proceeds. Stores further benefit from obsessive-compulsive purchases of ‘reusable’ bags which then accumulate under consumers’ kitchen sinks.

The 2011 version of the 10-cent bag tax failed at the end of the legislative session when enviros stabbed business in the back by amending the bill to eliminate retailers’ portion of the fee-split.

Will enviros learn from their failure? Will businesses, the State and environmental activists be able to hold their coalition together stick it to the consumer? Is there honor among thieves?

The Bag Tax is a key trial of the theory that eco-hype can replace old-boy development schemes as a profit source for corporatist Hawaii’s captive business community. If enviros are unable to migrate from developer shake-downs to a business model which transforms hype and fear-mongering into cold hard cash for businesses, the transfer of control of the one-party system from old-boy to progressive will lead to the dissolution of one-party rule.

HB 2260 HD1 and SB 2511 SD1 are currently before the House Finance Committee and Senate Ways and Means Committee respectively. WAM will hold a public decision making on Wednesday 2-29-12 9:15AM in conference room 211.

Here is the run down from 2011 before the failure of that year’s SB1363 Bag Tax bill:

by Andrew Walden, April 7, 2011

After two years of marketing the alleged horrors of the non-existent “Pacific Garbage Patch”, environmentalists, big business, and big government are ready to cash in.

Senate Bill 1363 “requires businesses in the State to collect a 5-cent fee for each (paper or plastic) single-use checkout bag provided to a customer.” And after all that work using the equivalent of a mass-marketing campaign to con-vince the public to hate and fear plastic, the State General Fund, supermarkets, and environmentalists have hit on a way to divide up the loot.

UPDATE: In the early hours of Thursday April 7, the House Finance Committee passed SB1363 with a 10 cent per bag fee.

As is often the case, a scheme launched in Hawaii is envisioned as a model for the shake down of consumers all over the United States—and it this case, business is already on board. Bob Gutierrez of Times Supermarket writes in support of SB1363:

There are various models throughout the United States that address the use of single use bags, and while some are similar throughout states such as California, they lack a uniform approach. Hawaii would be the first state in the union to implement a statewide policy that holds all jurisdictions to the same standard.

Participation in SB1363 will reinforce belief in the environmental religion, as one testifier writes: “With the proper outreach, this bill could educate the public against a disposable lifestyle….”

Written testimony from Hawaii Department of Health Director Loretta Fuddy underlines some of the points which remain to be settled in secret by the House-Senate Conference Committee or the Democratic Caucus determining how the co-conspirators will divvy up their loot:

The added cost to the department is estimated to be $1,000,000. This bill allows businesses to retain an unspecified percentage of offset fees collected as revenue subject to income tax but exempt from excise tax…. Also unspecified is the portion the department is to be deposit into the general fund, and how much the department may retain to implement the program. Penalty amounts are also unspecified. Community outreach, education, litter cleanups = $350,000….

“Community outreach” is code for “jobs for enviro-activists.”

There is a dispute over whether the General Fund will get all of the State’s loot. Abercrombie’s budget director Kalbert Young testified March 22:

A portion of the fees are to be deposited into a special account in the State general fund for expenditure by the Department of Health for expenses related to the administration and enforcement of this bill. As a matter of general policy, this department does not support the creation of any special account within the general fund of the State for specific purposes.

Big business is also getting a cut of the action. Retailers have sharply opposed plastic bag bans on Maui and Kauai, but they are salivating over the bag tax. Lauren Zirbel of the Hawaii Food Industry Association testifies in support of SB1363:

We are … pleased that this bill recognizes that it will cost retailers money in increased checkout time due to hassles associated with counting each bag at the point of sale. Without a fee on paper, our current plastic bag ban bills will result in a shift to paper bags. Paper bags can cost as much as 10 times more than plastic bags.

Unelected progressives and environmental activists serve as an outlier which elected progressives can point to and then paint themselves as reasonable. For instance, Josh Frost of the Progressive Democrats of Hawaii writes: “I would ask that the bill be amended to reinsert the fee amount at 25 cents.” Several UH Richardson Law school students wrote testimony begging Legislators not to override the plastic bag bans in Kauai and Maui Counties. Those bag bans were the cudgel with which progressives brought big business to the bargaining table to divvy up the takings. As Bob Gutierrez of Times Supermarket explains in written testimony March 21:

Currently two island counties have implemented bag policy where we operate stores, and while we support the attempt to change consumer behavior, we believe that that best method for doing so is by implementing a fee.

Susan Houghton, representing Safeway, seconded Gutierrez’ point:

We are aware that Maui and Kauai have both already adopted strict plastic bag bans, however, we believe a fee-based system on both plastic and paper is the preferred route. The city of San Francisco completely banned plastic bags several years ago — but did not address the issue of paper bag use. As a retailer with 15 stores in that city, we saw our costs for paper bags increase substantially — by more than $1 million a year.

Unlike the old boys who ruled through pay for play capital improvement projects and control of labor unions, the progressives claim to power rests on their ability to “manufacture consent” via mass marketing campaigns such as “Global Warming” or the “Pacific Garbage Patch” and then transform those illusions into real laws and real changes in consumer behavior.

Progressives’ ability to raise taxes and direct taxpayer, ratepayer and consumer money from the pockets of thousands of individuals into the coffers of special interests stems from their control over the application of guilt and redemption in the environmental religion.

The bag tax is the latest test of their power.


Oregon State Univ: Oceanic “garbage patch” not nearly as big as portrayed in media

SB1363_HD1_HSCR1119: Status, Text, Testimony

Testimony cited in article: http://www.capitol.hawaii.gov/session2011/Testimony/SB1363_SD2_TESTIMONY_EEP-ERB_03-22-11_.PDF

RELATED: Legislators, Big Business push Bag Tax on Hawaii shoppers, Enviro scammers: Bag taxes are Fun! (SB1363)

SaveThePlasticBag.com: Reality vs Image from the Enviros own photos


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

Aloha Pregnancy Care Center


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


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute


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 Federalist Society

Hawaii Federation of Republican Women

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



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

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

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui


Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii


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


OHA Lies

Opt Out Today


Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii



Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii


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


West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii