Small Business News
August 2005 | Online Edition
Small Business Views
By Sam Slom, President and Executive Director of Small Business Hawaii
We wish it weren’t so, Governor Lingle. Small business feels betrayed by the first Republican governor in 40 years. After announcing she would veto the 121/2% GET tax hike, HB 1309, on July 8, she reversed herself on July 11. This after a secret, back room meeting, and deals with Democrat leaders of the House and Senate and Mayor Mufi Hannemann.
State Rep. Galen Fox (R-Waikiki) , who voted for the tax increase during the session, then regretted it, has been a fearless opponent of the tax since May. He testified several times against the tax at City Council and other venues. On July 11 he organized and led a town meeting attended by more than 100 at the Hawaii Convention Center with a theme of what to do now to oppose the tax. The fight ain’t over yet folks. Mahalo, Galen!
Lingle’s primary business thrust upon election 3 years ago was, “The Open for Business Sign is on in Hawaii.” On July 11, the Governor turned off that sign. Her action in allowing the largest tax increase in Hawaii’s history, under the mistaken guise of “home rule,” followed a broken tax pledge raising the state’s conveyance tax, allowing the minimum wage to increase, not achieving or demanding any tax relief, UI tax reduction, work comp reforms or tip credit. Lingle also permitted union VEBA Trust passage to undermine the state’s EUTF health fund. She extracted NO other benefit for business taxpayers. Every business organization — except the Trojan Horse Chamber of Commerce of Hawaii — opposed the tax, the most regressive in Hawaii’s history. Nothing was gained in return. The Governor severely undermined the strength and resolve of all Republican lawmakers, the GOP party, and future prospects for Republican gains now that she is so closely identified with Democrat leaders and their policies. Betrayal is how most Republican loyalists feel. Fallout will continue. Rumors abound that Lingle wants a federal appointment or wants to run for the U.S. Senate next year.
The Governor’s new found Democrat friends rewarded her by overturning 12 of 12 vetoes (they didn’t touch meal breaks, frozen bread labeling or a few others) in a one-day not-so-special Special Session, July 12.
Mayor Hannemann also kowtowed to unions, spread misinformation on the tax, and used heavy arm twisting. Who now stands up for small business in public office?
The phony issue of the Pearl Harbor base closing arose during the final days of the GET debate. Phony because there is no chance of the closure and it was a convenient diversion from the tax issue. Sen. Dan Inouye’s heavy hand is quite apparent but Governor Lingle might have been involved as well, tying together Pearl Harbor, GET, and the Akaka Bill. Will make a good movie.
Former Governor Benjamin Cayetano reportedly writing his autobiography. Should be a short book. He should call it by his main theme, “Reward Your Friends and Punish Your Enemies.” Wonder if he’ll remember calling me, “a zero, a nothing,” and naming a Guam Brown tree Snake, “Sam?” Maybe I should help ghostwrite for some accuracy.
Sorry to report the recent deaths of several active SBH members: Greg Blotsky, co-owner of Cisco’s Cantina with Martha Harding, and his catering, and a former SBH Small Business Person of the Year (along with Martha). Greg was a patriot and a gallant fighter. We will all miss him. Likewise, John “Jay” Magin died. Jay and wife Judy were active in the Aiea-Pearl City Business Association and SBH. I knew Ken Warner and his wife Gladys for more than 35 years, first meeting him when he worked in the old Castle & Cooke mailroom. He was a staunch conservative and called in talk shows with a wealth of information. Gladys died in May.
Some top Society of Professional Journalists (SPJ) Hawaii annual awards went this year to Hawaii Reporter writers, Laura Brown, Jay McWilliams, and Malia Zimmerman. Hawaii Business magazine won two awards for editorial excellence in Detroit for AABP.
FOX News’ William La Jeunesse of LA, his producer and cameraman spent a week on Oahu — coordinated by Hawaii Reporter —and posted TV stories on Akaka, Bishop Estate, gas caps and other issues.
The U.S. House voted itself (another) pay raise. Hawaii’s Democrats split on the vote: Neil Abercrombie voting for a pay raise and Ed Case voting “no”. Way to go Ed!
Hawaii’s first IHOP coming to Windward Mall. The Mall is undergoing major changes.
Aloha Petroleum’s Tom Yamaguchi, a successful thespian, next appears in the Army Community Theatre production of “Guys and Dolls” at Richardson Theatre Sept. 8-24. Tom is “Calvin,” a Salvation Army member.
The Aston brand, created by Hawaii hotelier Andre Tatibouet, disappears soon to be replaced by Resort Quest Hawaii.
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