Local Connection: Tax Hikes

Local Connection: Tax Hikes

By: Rick Blangiardi

A majority of members of the Hawaii house of delegates say they won't vote for tax hikes.

Now, I don't want to put words in their mouths, but what they did say is pretty close.

They said they will not vote for the tax hikes suggested by a consultant to the state tax commission.

The consultant suggested adding half a percent to the state excise tax.

Other suggestions include taxing pensions and raising taxes on tobacco and alcohol.

The reaction of lawmakers, which is somewhere between no and hell-no, is welcome.

State tax revenue goes up the most, not when you raise tax rates, but when the economy improves.

If the local economy recovers, people and businesses buy more stuff.

The excise tax is attached to most transactions, wholesale as well as retail.

The best way to increase state revenues is not to put obstacles in the way of recovery.

Fortunately, a commendably large number of state lawmakers now seem to be understanding this logic.

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