Taxation Power | Death Tax | Transition Markets

Take Taxation Power Away from the Politicians

By Paul Smith

Voters delegate to their elected representatives the responsibility to effectively manage the administrative and financial affairs of the City. If that delegated authority is misused; it is time for a change.

When the City Council announces that it will pay residential owners a one time $200 bribe to keep quiet on rising property taxes; it is an insult! When the City Council lowers residential rates but raises commercial property tax rates we ask: who do they think they are fooling; the consumer is the only taxpayer who pays in the end.

Pitting residential against commercial is divisive and detracts from addressing the real issue; spending by the City. As long as City politicians fail to connect services and taxes in a meaningful way; voters will reduce the power of politicians to tax.

Government authority comes directly from the people (voters). When conditions get so bad that home owners are forced to choose between property taxes and food; it is time to correct City government abusive tax policies. During 2005 the City Council and the Mayor have demonstrated that their only answer to City issues and services is to raise taxes and fees.

Let Honolulu Vote believes that these tax and fee increases should be subject to a review by the voters when it is clear that elected officials misuse their delegated authority. That time is now.

Let Honolulu Vote is a voter initiative to amend the City Charter to permit voters a voice by allowing:

1. Voter initiative on tax rates and policies - Let Honolulu Vote wants the public to be given a choice rather than the “take it or leave it” decisions of the City Council and the Mayor. Public testimony at Council hearings is limited to one or three minutes; City decisions are influenced by lobbyists and special interests; the public taxpayer is viewed as a cash ATM that results in government programs and costs never needing to be reduced or efficiency encouraged. With the power of initiative on tax matters written into the City Charter; voters will always have, potentially, the last say.

2. Cap the growth in revenue coming from property taxes at 4% per year - this CAP would cut fiscal 2007 tax revenue coming from property taxes to $519 million instead of the forecast $680 million. The difference of $161 million would mean lower tax rates for all property owners. A 4% CAP would give predictability to property owners and renters to forecast exactly what the maximum property tax increase could be from year to year.

Let Honolulu Vote announced that 23,000 homes in East Oahu were phoned, and voters were asked to come to Kahala Mall and sign the two petitions. The signature push has begun. Let Honolulu Vote wants 60,000 signatures by July 15.

NTU Blasts Vote on Death Tax

By John Berthoud, National Taxpayers Union

The June 8 U.S. Senate vote over death tax repeal wasn’t about defeating a procedural motion by a 57-42 margin – it was about not respecting the larger margin of public support for ending the Tax Code’s assault on the American Dream.

Entrenched Senators on both sides of the aisle who shot down the idea of a simple up-or-down vote on this vital issue apparently can’t grasp the economic and moral case for getting rid of the death tax that ordinary Americans already understand.

A recent Gallup poll showed that 58 percent of those surveyed thought the death tax was ‘unfair,’ but a survey commissioned by the Tax Foundation determined that an even stronger 68 percent backed total repeal of the levy.

Senators certainly can’t use the deficit as an excuse for their continued obstruction. The 42 lawmakers who voted today to block permanent death tax repeal had a median pro-taxpayer score of just 9 percent on NTU’s 2005 Rating of Congress, which is based on every roll call vote affecting spending, debt, and taxes. Those who voted to proceed had a median score of 70 percent. Obviously the naysayers who voiced concern today about red ink in Washington haven’t backed up their words with votes to reduce runaway expenditures.

Senators who think the issue of death tax repeal is behind them had best look over their shoulders. If they try hard enough, they’ll see the millions of angry Americans who believe that such a punitive, counterproductive, and repugnant tax has no place in this country’s law books.

This issue is far from settled, a fact that will confront politicians this summer on the Senate floor or this fall in voting booths across America.”

John Berthoud is the president of the 350,000-member National Taxpayers Union (NTU).NTU is a non-profit, non-partisan citizen group working for lower taxes and smaller government at all levels. Note: Numerous studies, letters to Congress, and other examples of NTU’s work to repeal the death tax are available at http://www.ntu.org’

Transition Markets, Part 2

By Walt Harvey (R), East Oahu Realty
ABR, CRB, CRS, GRI, SRES, AHWD, ePRO, QSC, RSPS, TRC

Three months ago I wrote that our Hawaii real estate market was in transition from a Sellers market to a Buyers market. In many areas of Oahu, we are now in that Buyers market. In my view, a Buyers market exists when there are more homes available for sale and fewer buyers to buy them. Homes remain on the market longer and prices soften since there is more competition. Buyers tend to view many more properties before making an offer and tend to offer below asking price. If their lower offer is countered or declined, there are other homes to choose from. The buyers are in control, hence a buyers market.

Selling? Repeating my advice: Price your home competitively and stage it so youíll be the next to sell. Choose a company and agent that will market your home aggressively on the Internet. Make sure the agent you choose to list your home is Internet savvy, uses many pictures and provides a virtual tour! Most buyers want to see multiple pictures and/or a virtual tour. I canít understand why so many agents fail to use the technology and tools available to place the homes they represent in front of prospective buyers.

Buying? Look at lots of property and get a feel for home prices. Then you can recognize a good value and feel comfortable making an offer quickly should a motivated seller, after waiting months for an offer may make a substantial price reduction. When that occurs, you may not be the only interested buyer. Multiple offers still occur in Buyers markets on well priced, staged properties.

July 2006 SB News Front Page

Taxation Power | Death Tax | Transition Markets

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Copyright 2006 Small Business Hawaii. Last update: July 3, 2006