Hawaii ranks 40th for Economic Outlook - Grassroot President Akina speaks out for economic reform

“Hawaii must do better!” -- Keli’i Akina, Ph.D., President/CEO of Grassroot Institute of Hawaii

News Release from Grassroot Institute May 23, 2013

For the sixth year in a row, Hawaii has been ranked among the bottom ten states in economic competitiveness.   That is according to the most recent report of the ALEC-Laffer State Economic Competitiveness Index. The ALEC-Laffer study measures the impact of state policies in 15 key areas from personal income and corporate tax rates to the costs of Workers' Compensation. 

According to Dr. Keli’i Akina, President of the Grassroot Institute of Hawaii, “While the 2013 study does show that Hawaii has improved in its overall rank from 46th to 40th in terms of economic outlook for the future, a careful examination of what is included in the study as well as what is not, should caution any optimism.”

Grassroot Institute of Hawaii, a public policy think tank, is making the report available to Hawaii policy makers and businesses.

Jonathan Williams, Director, Tax and Fiscal Policy for ALEC (American Legislative Exchange Council), says “States that rank low on the economic competitive index need organizations like the Grassroot Institute of Hawaii to serve as watchdogs of fiscal policy and centers for developing effective changes.”

Dr. Akina continues, “Hawaii's sales tax burden should sound a major alarm.  While many argue that our General Excise sales tax rate is not inordinately high, a closer look at the actual percentage of consumers' personal income spent on sales tax ranks Hawaii as the worst in the nation. This especially harms those at the lower end of the economic ladder, imposing an undue burden upon the middle class and poor.  Additionally, Hawaii is ranked 48th in the top marginal personal income tax rate and 50th in terms of estate and inheritance taxes.”

Akina concludes: “Although Hawaii's overall 2013 ranking on economic competitiveness has risen somewhat from 2012, the ALEC-Laffer index does not include state unfunded liabilities for pension and health insurance programs, which significantly impact economic competitiveness.”

For press inquiries to interview Dr. Akina, contact Grassroot Executive Director Tim Lussier at (808) 591.9193 or email tim@grassrootinstitute.org

The ALEC-LAFFER State Economic Competitiveness Index is published in Rich States, Poor States, and 6th Edition by the American Legislative Exchange Council.

Rich States, Poor States finds that:

· States with lower taxes and fiscally responsible policies experience far more economic growth, job creation and in-migration than their high tax, big government counterparts.

· There continues to be a strong movement all across the states in favor of pro-growth tax reform. From the recent tax overhaul in Kansas to the proposals being considered in Nebraska, Ohio and North Carolina, states are looking to become more competitive and embrace the policies that have been proven to lead to economic prosperity.

· California, once an economic powerhouse, continues its long slide into deeper economic malaise. The authors analyze the problems with California’s tax structure and offer a unique solution—a flat tax— to help restore prosperity in the Golden State.

· Despite their best efforts, critics of pro-growth tax policy fail to provide any reason to doubt the effectiveness of reforming a state’s tax and fiscal policies to promote economic growth. The authors make the case for sound tax and fiscal policy in a step-by-step guide detailing the flaws and deceiving methods used by proponents of bigger government.

2013 Economic Outlook Rankings:

• · Top Ten: 1. Utah 2. North Dakota 3. South Dakota 4. Wyoming 5. Virginia 6. Arizona 7. Idaho 8. Georgia 9. Florida 10. Mississippi
• · Bottom Ten: 40. Hawaii 41. Maine 42. Montana 43. Connecticut 44. Oregon 45. Rhode Island, 46. Minnesota 47. California 48. Illinois 49. New York 50. Vermont

To download a copy of the report, please visit www.alec.org/rsps

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About the Grassroot Institute of Hawaii:

Grassroot Institute of Hawaii is a nonprofit, nonpartisan research institute dedicated to the principles of individual liberty, the free market, and limited, accountable government throughout Hawai`i and the Asia-Pacific region.

Facebook: http://www.facebook.com/GrassrootInstitute Twitter: http://twitter.com/grassroothawaii

About Dr. Akina:

Dr. Akina is a recognized scholar, educator, public policy spokesperson, and community leader. In 2012, he was a candidate for the non-partisan position of Trustee in the Office of Hawaiian Affairs.  Akina has decades-long experience leading non-profit organizations including Youth for Christ Hawai`i and the Center for Tomorrow’s Leaders. An expert in East-West Philosophy, he has taught at universities in China and the United States, and continues as an adjunct instructor at Hawai`i Pacific University and the University of Hawai`i at Mānoa.

About the American Legislative Exchange Council:

The American Legislative Exchange Council is the largest nonpartisan, voluntary membership organization of state legislators in the United States. The Council is governed by state legislators who comprise the Board of Directors and is advised by the Private Enterprise Advisory Council, a group of private, foundation and think tank members. For more information about the American Legislative Exchange Council, please visit www.alec.org.