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HomeMy WebLinkAboutCOM 0751.039 2014-2016 May 1, 2016 Council Member Dennis "Fresh" Onishi 25 Aupuni Street o i, Hilo, HI 96720 CDC) e C Aloha Council Member Onishi, - I write to express my opposition to Bill 165 which would add a County of Hawaii surcharge of one-half percent on top of the current 4.0 General Excise Tax. Aloha, While I recognize and appreciate the need to raise additional revenues for the County of Hawaii, I strongly believe the proposal is N extreme and would have an adverse and negative impact on Hawaii's hard working families, homes, rentals, and our communities. The General Excise Tax is not like a sales tax. A sales tax only covers the final retail sale of goods -- it DOES NOT apply at the wholesale level, nor does it apply to services, rent, interest, commissions or other forms of income. General Excise Tax is applied to every economic activity imaginable. It DOES apply at the wholesale level, to services, rent, interest, commissions, and other forms of income. A business that is making little or no profit pays little or no income tax. In contrast, the General Excise Tax is imposed on every dollar that the business takes in, even if there is no net profit after expenses are paid. Let's not forget Hawaii's General Excise Tax is regressive. Lower-income families pay a larger percentage of their total income in General Excise Tax than other families that may be proportionately less. I urge the County Council to reconsider and VOTE NO on BILL 165 this Tuesday. Thank you for the opportunity to express my thoughts on this important matter in advance of Tuesday's vote. Mahalo, Ms. Jana Kaholoaa PO Box 1524 Kapaau, HI 96755-1440 janakaholoaa@gmail.com 151. 345 Comm. INo. Ref. To: Ref. DateSAY 0 32f..1L: