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HomeMy WebLinkAboutCOM 0751.059 2014-2016 Apr 30, 2016 Council Member Dennis "Fresh" Onishi 25 Aupuni Street Hilo, HI 96720 Aloha Council Member Onishi, I write to express my opposition to Bill 165 which would add a County o. Q C� of Hawaii surcharge of one-half percent on top of the current 4.0 General Excise Tax. The mere existence of an excise tax is,a testament to the laziness of NJ state lawmakers. An excise tax is a production tax, as opposed to a consumption tax (sales) . When we were a state relying on Ag max+ production, this made sense as a sales tax would be a heavy burden on :4:.,11-71 the working class. In our current economy, the pyramid tax scheme of •• the excise tax means that a 1/2% rise to the stated proposed GET of NJ 4.666% is effectively about a 16% total tax (SOURCE: TAX PYRAMIDING AND EXPORTING IN HAWAII: AN INPUT OUTPUT ANALYSIS Richard Bowen and PingSun Leung, January 1989, 630 US ISSN 0271-9916) I know that our council can do nothing about there being an excise tax instead of a sales tax. However, this is your opportunity to declare that you ideologically oppose a tax which places a disproportionate burden on the poor and working class families. This is not "found" money like from Washington. This is extracted money from the citizens of this county. Additionally, it's earmarked for a specific purpose, which means that the council can not use their discretion and spend the money where it is needed. This money will be extracted from our economy and sent to companies like Cat, and Hyundai for the capital expense for the companies doing the work. It will go to mainland companies selling asphalt and other necessities not produced in Hawaii. Finally, while many of you run opposed this term, think about your next election. We saw a lot of Super Pac money come in during the last election. Do you really want every voter in your district to see a postcard in their mailbox with your name and face, and your vote to increase the tax on the working class voters? Thank you for the opportunity to express my thoughts on this important matter in advance of Tuesday's vote. Mahalo, Mr. Michael Drutar 75-6009 Alii Dr Apt Y2 Kailua Kona, HI 96740-4394 mikedrutar@yahoo.com Comm. No. Ref. Ref. To: 91C-ei Ref. Dote IAA 0 3 2016