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Small Business News
December 2006 | Small Business News

Small Business Views
By Sam Slom, President and Executive Director of Small Business Hawaii


Sam Slom, SBH President & CEO The General Election was a disaster for Republicans — and small business and taxpayers — as the Democrats retook both the House and Senate after 12 years. Taxes, spending and employer mandates will increase. It was not unexpected and it was the fault of Republicans who were caught up in miscues in Iraq, pork, big spending and scandals. They demonstrated a failure to communicate the positive results of GOP leadership and for years acted more like a minority than the majority they were. Too many Republicans ran from previous positions and promises and tried to “reinvent’ themselves or run as “Bipartisans” while Democrats ran as “moderate” Republicans.

In Hawaii, Gov. Linda Lingle and Lt. Gov. Duke Aiona were re-elected easily, using $6.5 million and a 70% approval rating to stomp former Senators Randy Iwase and Malama Solomon. The Democrats didn’t really care: they still control the Legislature by a 4-1 margin, and the Judiciary too.

Republicans lost 2 more state House members, veteran lawmaker Mark Moses, and Anne Stevens, falling to 8 of 51, while barely holding onto 5 of 25 Senate seats. Former City Councilmember and SBH member, Mike Gabbard, took Brian Kanno’s seat in Kapolei. Previous Minority Leader Gene Ward was re-elected and joins seven GOP women in the House. Hmmmm. Bob Hogue (R) failed to engineer an upset victory against former Lt. Governor Mazie Hirono (D) for the 2nd District Congressional seat.

Several key Constitutional and City Charter amendments were also voted on. There are negative tax implications. Hawaii’s voter turnout was anemic again, hitting just 52% of those registered and 36% of those eligible.

Election losers: HSTA & HGEA unions, AARP, and the mainstream, drive by media.

House and Senate majority and minority factions reorganized for January’s legislative opening. Calvin Say retained power as House Speaker; Bobby Bunda ousted in Senate in favor of Colleen Hanabusa. GOP returned Lynn Finnegan and Fred Hemmings.

Want to save money? Buy as much as you can in December — big ticket items as well as long lasting staples — prior to the 12 .5% increase in the General Excise Tax that is slated to go into effect January 1, 2007.

The State Health Department announced (after months of complaints), it will “monitor’ Hawaii’s recycling tax program.

The Grassroot Institute of Hawaii held its 4th annual awards dinner, Saturday, November 11 at the Hale Koa Hotel. The George Washington award was presented to attorney, author and law professor, Randy Roth. “Unsung Hero” Awardee and keynoter was the Wall Street Journal’s John Fund.

Fund analyzed the election at an SBH Leadership Circle dinner hosted by Tom Jones at his Gyotaku Japanese Restaurant.

The annual Hale Aina Awards were held November 12 and two SBH members won: Tom Jones of Gyotaku Japanese Restaurant who won the Silver Award for Best Japanese Restaurant and Bill Tobin of Tiki's Grill & Bar who won the Silver Award for Best Place to Bring People When You Are Paying. Congratulations to Bill and Tom.

Landmark restaurants Kyo-Ya in Waikiki and McCully Chop Sui, have announced their pending closures. Marlon Brando used to come to Kyo-Ya when he was in Hawaii.

Ashley Furniture in Waipio closed suddenly last month under unusual circumstances (furniture deliveries were not made) and just weeks after a fire of mysterious origin at the store.

The expansion of the Hawaii Kai Costco is complete — ahead of schedule. If those workers had been doing the enormous backlog renovation of public schools, they would have been done a decade ago.

Hoping the flood-closed Kahala Consolidated Theatres will re-open this month.

In late October, HawaiiReporter.com and SBH sponsored a Halloween Party for the kids in the homeless shelter in Kaka’ako. This month, December 30, member Bobbie Slater and Maui Divers hosts a holiday party.

A state judge ruled that Turtle Bay can move forward with its 1986 development plan to add five new North Shore hotels.

Trump Tower Waikiki sold out in hours; a $400 million luxury condo sold for $700 mil.

SBH Sunrise December 28 features Hawaii State Tax Director, Kurt Kawafuchi. He will discuss the new 1/2% GE Tax surcharge to fund O’ahu’s rail project. The total GET on O’ahu will be 4.5% on almost all transactions. Reservation form on page 8.

Save the date: Wednesday, January 10, 2007: SBH’s 31st Annual Business and Investment Conference at the Ala Moana Hotel. See the draft program agenda and reservation form on page 4. Please attend!

Don’t forget to regularly check our website at www.smallbusinesshawaii.com.


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Copyright 2006 Small Business Hawaii. Last update: December 14, 2006