
SBH Sunrise
September 29, 2005
Former New Mexico
Gov. Gary Johnson

Tuesday, September 13
East Oahu Breakfast Club
Hawaii Kai Golf Clubhouse
7 - 8 am
Wednesday, September 14
SBH Board Meeting
SBH Office 12 noon
Tuesday, September 20
Aiea-Pearl City Business Assoc.
Pearl Country Club
Noon - 1:30pm
Thursday, September 29
SBH Sunrise Networking
Former New Mexico
Governor Gary Johnson
Macy's Pineapple Room
7 - 8:30 am
SBH TV
Sundays 7:00 pm
Channel 54

INSIDE THIS ISSUE
Gas Caps Effective Sep. 1
Council Passes GE Tax Hike
SBH Sunrise September 29
Small Business Views
Aloha Means Goodbye
Gas Caps May Hurt
Public Opposes GE Tax Increase
Tanonaka Pleads Guilty
How To Get Rid of It
Hawaii's Most Expensive
Identity Theft
Under Construction
SBH Home Page
ONLINE EXTRAS
Halt Tax Increases (PDF)
Rail Transit Report (PDF)
2005 LEGISLATIVE RATINGS
The Good, Bad & The Ugly

|
Small Business News
September 2005 | Top of the News
Price Fixing Gas Cap Becomes Law Sept. 1
Hawaii again becomes the first and only state in the union to experiment with a new bad law, in a series of bad laws, to have the state government fix the price of petroleum. Hawaii has the highest gasoline prices in the U.S. (averaging more than $2.65/gallon in August), but also has the highest combined gasoline tax (at 56¢ per gallon, federal, state and local).
Passed three years ago by State Senator Ron Menor (D-Mililani) and the legislative Democrat majority, the law wasnt to become effective until September 1, 2005. No other state has such a law, or considered it. The law was amended last year, and now applies only to the wholesale price of fuel, not retail. The strongest supporters admit it will not lower gasoline prices, but probably will create shortages, uncertainty and possibly higher prices.
Hawaii has been a leader in dumb laws that no other state has followed, including, the General Excise Gross Income Tax, Single Statewide School District, Mandatory Employer Prepaid Health Care and bottle tax.
The Governor has the ability to intervene, but even though she has stated her opposition to the bill previously, has declined to act to delay this law.
State PUC Gas Cap Price Webpage


Mayor Mufi Hannemann signed the GE Tax increase bill on August 24. He is shown at the with Democrat leaders and the Governor at a press conference in July announcing the passage of the GE Tax authorization bill that came out of the legislature this year.
City Council Passes GE Tax Increase
The City & County of Honolulu Council, meeting in Kapolei Wednesday, August 10, voted 7 - 2 to raise the General Excise Tax by 121/2% (4 - 4.5%) to finance an undefined train project, beginning January 1, 2007.
Only Council members Barbara Marshall and Charles Djou voted against the further fleecing of small businesses and island residents. As usual, the Chamber of Commerce of Hawaii, joined by big developers, big business and big organized labor, testified in favor of the massive tax increase - the largest in Hawaii's history. SBH, NFIB, RMH, the Honolulu Board of Realtors, and nearly every other business organization, testified against the devastating new tax burden on top of recently enacted tax and fee increases.
The GET hike will yield an estimated $150 million-plus per year and will be collected years before any dirt is turned for the transit boondoggle. The Mayor previously stated 1/2% is not enough and that anouth increase will be necessary.
Hawaii does not have a sales tax, it is the only state to have a General Excise Gross Income tax that pyramids to an equivalent rate of 12 - 16% on every business transaction, good and service at every level of transaction. SBH has vowed to continue the fight before the tax become operable in 15 months.
Webmaster's Note: Mayor Mufi Hannemann signed the GE Tax bill into law since this article was originally written.
HOW YOUR CITY COUNCILMEMBER VOTED ON BILL 40:
| Dist 1 Todd Apo |
YES |
| Dist 2 Donovan Dela Cruz |
YES |
| Dist 3 Barbara Marshall |
NO |
| Dist 4 Charles Djou |
NO |
| Dist 5 Ann Kobayashi |
YES |
| Dist 6 Rod Tam |
YES |
| Dist 7 Romy Cachola |
YES |
| Dist 8 Gary Okino |
YES |
| Dist 9 Nestor Garcia |
YES |
See how legislators voted on the GE Tax authorization bill (HB 1309 / Act 247)
|