SBH Sunrise
April 28, 2005
Inside this Issue!
No Business Relief
Small Business Views
SBH Sunrise April 28
J.A. Business Hall of Fame
SBA Awardees for 2005
SBA Awardees List (PDF)
Live Nude Girls...
Rail Tax Opposed
AG Responds
State Tax Tips
Clean Election Money Hurts...
Constitutional Convention
SBH Home Page
RAIL TAX PROTEST
See photos here.
SBH CONFERENCE
PHOTOS
GALLERY 1
GALLERY 2
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Small Business News
April 2005 | Top of the News
NO NEW TAXES! Several Small Business Hawaii members joined the rail tax protest near City Hall on February 28. Cliff Slater's group, the Alliance for Traffic Improvement sponsored the sign waving protest in reaction to the multi-billion dollar fixed rail proposal and the tax increase it will bring. The legislature is considering bills that will either authorize the counties to levy a sales tax or to increase the general excise tax by 25% statewide to pay for Oahu's fixed rail.
No Business Relief at the Legislature
More than 400 bills crossed over from the Senate to the House on March 8 in what is known as the “First Crossover”. The House sent the Senate a little more than 330 bills. Bad bills abound, including those that mandate tax increases to pay for Oahu’s rail transit proposal, an increase to the minimum wage and others that offer no relief for small business owners. The following is a running list of some of the more onerous pieces of legislation.
SB 1366 SD1: Rail transit supporters were pinning a lot of hope on the passage of this bill. This bill would have authorized each county to levy a general excise tax to fund Oahu’s rail transit project and other transportation items on the neighbor islands. On crossover day, the bill was recommitted and not placed on the calendar for a floor vote.
Bills from the House on various transportation issues were heard on March 2 in a combined Senate Transportation and Intergovernmental Affairs committee hearing. Among the mass transit bills that will hit business and taxpayers in the wallets are the following:
HB 1309 HD2: This bill will authorize counties to levy a surcharge (tax) to fund mass transit systems. The main reason for this bill is to fund Oahu’s rail transit plan. The bill has a sunset date of June 30, 2015 but as we all know, no tax increase bill has ever sunseted.
HB 1645 HD1: Another proposal to fund rail transit for Oahu will allow a portion of the gasoline tax paid in the City & County of Honolulu to fund public transportation. Hawaii has one of the highest gasoline tax rates in the country. Both bills were slated to pass as of press time.
Other bad bills that are progressing in the legislature:
SB 536: This bill which would allow union workers to picket on private property residences.
SB 579 SD2: A Labor Union bill to revive the VEBA trust fund was passed by an 18 to 5 vote. The VEBA trust will allow public worker labor unions to sell group health insurance premiums to selected members while relegating others to the State’s EUTF fund. The labor unions also pocket state tax dollars through this fund.
SB 294 SD2: Adding to Hawaii’s tremendous cost of doing business is a bill that will raise the minimum wage to $7.00 on Jan. 1, 2006. The bill will also allow for annual increases to the minimum wage thereafter. There is a house version with different details but it appears that the mandated wage will increase unless business contacts their lawmakers.
SB 55 SD1: This requires a government-imposed rest or meal break for employees who work five or more continuous hours per day, no matter what the demands of the job. (Employers are not now allowed to deny breaks but this forces a time certain).
SB 1897 SD1: Distributes 25% of the raised conveyance tax into the land conservation fund.
SB 1689 SD1: The “Clean” election bill calls for mandatory taxpayer financing of political campaigns. Citizens will end up having their tax money spent on candidates they oppose.
SB 1236 SD1: Further penalizes smokers through an annual increase to the tobacco tax in the years of 2005, 2006 and 2007. It is about taxes; not health.
Other bills would continue to raid the Highway Special fund by another $22.2 million — more than $143 million was taken to the general Fund during the past 6 years — raid the Hurricane Relief Fund, raid the “Rainy Day” Emergency Fund, to pay for specific activities, welfare programs and public employee raises. Collective bargaining raises will cost taxpayers tens of millions of dollars and the demand will not end. Other benefits, tax breaks and credits could be awarded to Hawaii’s special class: public union employees.
Meanwhile, no improvement or meaningful reform for workers’ compensation, small business procurement bureaucracy or prepaid health care act changes. And, no hearings allowed by the majority party on the newly enacted beverage container deposit tax.
However, SBH, NFIB, RMH and other groups will continue to battle for all small businesses.
For latest bill status, go the legislative website: www.capitol.hawaii.gov or www.smallbusiness.com.
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