Hawaii is one of the top taxed states in America
Raising the excise tax from 4 to 4.5 percent is not a 0.5 percent increase. The amount is 0.5, but the percentage increase is 12.5 percent.
Our current excise tax of 4 percent equates to somewhere near 11 percent if there were a more standard sales tax that does not apply to services and, most onerous of all, rent! And, by the way, most businesses now charge 4.17 percent because of tax due on tax so this helps offset what is due the state. It’s a tax on tax!
Almost every time money changes hands here excise tax is due. Merchants paying $25,000 rent pay tax on that amount. Four workers in one condo pay it on their $2,500 rent. Homeowners do not. Pay the plumber and pay the tax. Pay for medicine, groceries, etc., pay the tax.
I believe we are in the top three or four taxed states in America already, and it is not enough? Maybe we can be number one!
I do not have the solution, but maybe we could cut taxes of the ultrawealthy and watch it trickle down like magic.