Tom Yamachika, President of the Tax Foundation of Hawaii joined Joe Kent at the Grassroot Institute of Hawaii to discuss the new proposed tax increases at the Senate. The interview was recorded as part of the Grassroot Institute with Dr. Keli’i Akina, a radio show on KAOI 1110AM, 96.7FM, Mondays on Maui at 7am.
According to Mr. Yamachika, the first bill, introduced by Senator Kidani at the request of the teacher’s association, would “Fund major improvements for the education system.” However, the proposed funding would come from “changing the base General Excise Tax (GET) rate from 4% to 5%… a 25% increase.”
Mr. Yamachika also mentions a second proposal for a long-term care system. “The bill proposing that would have a 0.5% surcharge on the GET.”
Those two bills alone would raise the GET to 5.5%, an increase of nearly 50%. When asked about what effect this tax increase would have on our economy, Mr. Yamachika cited a recent study which claimed “[The studies] show, in the past seven years, an average of 2% – 2.5% decrease in population per year.” He also warned that a tax increase could proliferate the already declining population, which would result in a decrease in tax revenue.
Listen to the full interview here: