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• • r <br /> Dear HSAC colleague <br /> Re: Council of Mayors Proposal for "Up to 1% Excise Taxing Power" <br /> January 14, 2014 <br /> Page 2 <br /> 2. We, as individual county councils, and we, as the HSAC, haven't done our <br /> homework and don't understand the ramifications of the mayors' <br /> proposal. As you may know, the excise taxing power, especially as <br /> structured in Hawaii, is an extremely regressive tax—that is, its impacts <br /> are proportionately hardest on the poor and lower income households. <br /> Please see Attachment "B" "Hidden costs lurk in Hawaii's version of sales <br /> tax" and Attachment "C," "Info Sheet 1: How Regressive Taxes Affect <br /> Different Income Levels." At minimum it seems we need to know how <br /> much additional cost of living a 1% excise tax will generate for lower <br /> income families. We also need to know the impacts of the "pyramiding" <br /> tax on small businesses. <br /> 3. As has been said over and over again, we need to be united when we go <br /> before the Legislature. Because we haven't had a robust discussion <br /> within our councils, within HSAC, or with our constituents, we don't have <br /> a united position. We need time to see if we can develop a consensus. If <br /> we could find a consensus, it would be very powerful, but a divided HSAC <br /> is not a good approach. <br /> If, after reading this, you share my concerns, please do the following: <br /> 1. Let me know so we can work together. I plan to submit testimony to the <br /> State Legislature against the mayors' proposal. <br /> 2. Let your HSAC representative know that you would like the Executive <br /> Committee to defer this matter so HSAC can make it the focus of our next <br /> HSAC general membership meeting and we have the time to discuss the <br /> matter in our respective councils and with the citizens of our respective <br /> counties. <br /> 3.' If the matter is approved by the HSAC Executive Committee, please let <br /> your state legislators know that you do not at this time support a 1% <br /> county excise tax power that can be used for any county purpose. <br /> Thank you for your consideration in reading this. <br /> Sincerely, <br /> • <br /> ANNA. YU ► RA <br /> Councilmember, .ua`i County Council <br /> JAY:dmc <br />