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   Hawaii's Taxpayer Can Find No Refuge


By Tali Satele

This essay won third place in the Trimble Foundation Awards contest  on the High School Level for 2005.

 

Thomas Paine wisely notes in his famous pamphlet, Common Sense, that the institution of voluntary cooperation has been a blessing for humankind for "the strength of one man is so unequal to his wants... that he is soon obliged to seek assistance and relief of another, who in his turn requires the same."

These "reciprocal blessings" of societal cooperation would "render the obligations of law and government unnecessary" to the extent that the people "remained perfectly just to each other."

In other words, no government is needed until some injustice occurs. All things are just as long as interaction between persons is based on mutual agreement. The proper role of government, then, is to protect the people from the use of force by one another and invaders. Nothing more, nothing less.

Despite its role as the protector of its citizens, Paine calls the State a "necessary evil" under its best behavior and an "intolerance" when it is at its worst.

Its worst has reared its ugly head in Hawaii. The state and local governments will raise taxes making them intolerable for many citizens – especially the poor. Property taxes, vehicle taxes, general excise taxes (GET) and even sewer fees are going up. The taxpayer can find no refuge.

Taxes and fees going up left and right, because former Mayor Harris did a terrible job with Honolulu’s finances. Now, the city’s infrastructure is on the verge of collapse. But who gets punished for the last administration’s mistakes? The people, of course. If politicians bore personal financial liability for their actions, they would not make promises the state cannot keep and pay closer attention to free market solutions to public problems.

Government should have learned from the collapse of the Soviet Union that it’s impossible to centrally plan the economy. Yet, politicians continue to turn a blind eye to free market solutions, which could save the people of Hawaii billions of dollars every year.

This state has a bus monopoly while cities and countries around the world benefit from open competition in the mass transportation market. The children of Hawaii suffer under the hegemony of the State DOE while other states and countries promote school choice. Soon, Oahu taxpayers will shoulder the costs of a money-draining rail system with the GET increase (4% to 4.5%) while other states have high occupancy toll roads and privately funded tunnels.

The general excise tax (GET) increase will be a heavy burden, especially on the poor, because it works in a pyramid fashion taxing every transaction involved in the sale of a good. This regressive taxation multiplies itself on not only food and medical supplies, but also on house/rental prices. Food, housing and health are three areas where the poor make day-to-day, paycheck-to-paycheck decisions. A family of four can expect an estimated increase of $450 in GET on top of every other tax/fee increase. The camel’s back is of no concern to politicians. The pipe dreams of socialism advance the tax increase agenda. The fall of the Red Curtain and Europe’s struggling economies have taught government officials nothing. They would rather see everyone suffer equally under the barrel of a gun than see an unequal sharing of prosperity under the institution of voluntary cooperation.

Thomas Paine and the Founders believed that government is best when it governs the least. These tax raises are not only contradictory to this country’s founding, but history has proven that they are short-lived solutions to long-term problems. Society would enjoy better and more cost effective services in the areas of public education, public transportation, healthcare, Social Security and other programs through the introduction of market forces. That means implementing reforms that force these programs to stand on their own two feet in the marketplace without the support of taxes.

The question is whether government has the common sense to implement free market solutions before it’s too late.

Talifaitasi Satele is a resident of Ewa Beach. He graduated from HPU with a degree in Business Economics and commissioned as a 2LT in the US Army Reserves. Tali, originally from the village of Vailoa, American Samoa, joined the active army force in 1998, and served for five years.

A Fresh Perspective is a project of the Grassroot Institute of Hawaii. Submit proposed articles to mailto:grassroot@hawaii.rr.com

November 8, 2005

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