HomeMy WebLinkAbout2020-02-18 Letter to Donovan M. Dela Cruz and Gilbert S.C. Keith-Agaran SB 2542, SD1 Relating to the General Excise Tax Exemptions �oJ1Tv;os„, ',• Roy Takemoto
1, Managing Director
Harry Kim % +:6� �- :,t i*
Mayor " "-�
°5- ---° Barbara J. Kossow
�T•or i+ ►'�=` Deputy Managing Director
County of Hawaii
Office of the Mayor
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February 18, 2020
Senator Donovan M. Dela Cruz, Chair
Senator Gilbert S.C. Keith-Agaran, Vice Chair
Committee on Ways and Means
Dear Chair Dela Cruz, Vice Chair Keith-Agaran, and Committee Members:
RE: SB 2542, SDI Relating to the General Excise Tax Exemptions
Thank you for this opportunity to testify on a crucial issue facing our State.
"Making Hawai'i a nice place to live" is simple to say, and almost too obvious a goal to highlight, but nevertheless
that phrase sums up the most important task facing our elected community leaders. For this reason alone, I want to thank
and praise any effort to deal with one of the most critical issues that we must confront, and that is the crisis in our
healthcare system caused by our healthcare provider shortage.
We are justly proud of the Hawai'i Prepaid Healthcare Act, but how valuable is insurance if you cannot find a
provider? How can we expect our people, especially our aging population, to live comfortably, if they believe that quality
healthcare is only available if they have the time and ability to travel to the mainland? How can we attract more providers
when they realize that they will be expected to work extraordinary hours because there is not a reasonable number of
other providers to share the burden?
And the ramifications are important, too. To what extent do we limit our primary economic driver, tourism, when
visitors are warned "Don't get sick in Hawai'i"?
I am not smart enough to know how to entirely solve our provider shortage. However, I am told, and do believe,
that eliminating the General Excise Tax on healthcare services would be a very positive step in improving the economics
for healthcare providers, thereby encouraging existing providers to stay in practice and enticing new providers to join us.
When I describe our situation, I try to use the word "provider" because, in truth, our healthcare crisis goes beyond
our physician shortage. For that reason, SB 2542, SD1 is the preferred approach if it is not too expensive, because it
would create a general excise tax exemption for medical services provided both by all physicians and by advanced
practice registered nurses acting in the capacity of primary care provider. It seems to me that broadening the exemption
to APRNs is a sensible way to go, if the State is able to absorb the initial additional loss of revenue ("initial" because most
or all of the loss would be offset as the higher earnings of the APRNs are spent and circulate through the community,
generating new tax revenue).
Please pass SB 2542, SD1, and thank you again for addressing our healthcare dilemma.
Re ectfully Submitted,
arry Ki�J m T�
MAYOR
County of Hawaii is an Equal Opportunity Provider and Employer.