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HomeMy WebLinkAboutCOM 0751.095 2014-2016 May 3, 2016 Council Member Dennis "Fresh" Onishi 25 Aupuni Street Hilo, HI 96720 Aloha Council Member Onishi, c. SCJ 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 4,General Excise Tax. - While I recognize and appreciate the need to raise additional revenues UJ - ' for the County of Hawaii, I strongly believe the proposal is extreme and would have an adverse and negative impact on Hawaii's hard working families, homeless, rentals, and our communities. As a member of a household where we are both independent contractorsthis places a large burden on us and we do not feel like it is fair to t keep taxing the working class like this. An increase in tax should be on sales tax so that it is evenly distributed amongst the community. Increasing GE Tax only hits a select number of individuals that are already paying their fair share of taxes and then some. There is a reason why Hawaii is one of the only states to have this tax and it isn't because we are a progressive state by any means. There are many states out there that manage to balance their budget with out GE Tax instead of increasing this tax you should take a look at what other states are doing to balance their budgets. 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. 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, Mrs. Misti Tyrin 2 Kamehameha Ave Hilo, HI 96720-2830 misti@daylum.com Allef COMM. N® 5I -1..) ' Ref. To: Ref. Date MAY 0 3 .2016