Thursday, April 22, 2010
Does plan to increase Hawaii’s General Excise tax have backing enough to withstand a veto?
by Larry Geller
Concerned about how Hawaii will deal with its budget shortfall, what new cuts or new taxes may emerge from this legislative session? Here is the current GET recommendation that is circulating at the State Capitol.
The plan would increase the General Excise Tax temporarily and compensate low-income families It may be close to what the Legislature will pass over the next few days. Click “Fullscreen” to read.download GET plan from Scribd
Even should this pass both houses of the Hawaii Legislature, its fate is uncertain. Governor Lingle is ideologically opposed to any tax increase. A veto of a GET increase would likely not be overridden in the House, at least not without major arm twisting.
So where does that leave the budget? Even if the Senate passes the four revenue bills from the House that are currently deferred, these bills would also likely not have sufficient support for a veto override.
If revenue cannot be increased, then the Governor would reduce the size of government by as much as $250 million. Government services would be slashed well beyond anything we have currently experienced.
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"If revenue cannot be increased, then the Governor would reduce the size of government by as much as $250 million. Government services would be slashed well beyond anything we have currently experienced."