2 HAWAII FILIPINO CHRONICLE MARCH 20, 2021
EDITORIAL
Raising Taxes at This Time Would Be Harmful
H
awaii Republicans against the variety of tax increase bills currently at the Hawaii State Legislature owe a big thank you to Democrat lawmakers in the US Congress and Senate. Why? Because the latest $1.9 trillion coronavirus relief package that was entirely passed by congressional Democrats with no Republican support could just be enough for Hawaii lawmakers to forego at least some or all of the state’s proposed tax increase proposals this session. There are no guarantees, but Gov. David Ige already said a sizeable lump of cash from the federal government for the state would “ease the state’s immediate money woes.”
Federal Budget’s Impact on Local State and County Budgets Without the federal government’s assistance (Hawaii is expected to get $6.1 billion in federal funding from the $1.9 trillion), the state would have had no choice but to increase taxes to meet its budgetary shortfall. Remember that state and local governments are required by law to balance their budgets; while the federal government can incur debt and borrow money to meet its obligations. People who truly understand how government budgets work, they know a Democrat-controlled federal government is more likely to pass legislation that aide state governments. This in turn relieves some pressure for state government to raise taxes. This has always been the case. The fantastical, unrealistic world some Republicans tend to have is -- they would want a Republican-controlled Congress and Presidency to be tight-fisted in passing legislation that would provide assistance to states; then on top of that, at the state level they would also prefer to reject all or any taxes. Basic math tells you this just doesn’t make sense. Remember when then Senate Majority Leader Mitch McConnell last April in the beginning stage of the coronavirus said he would rather let state governments declare bankruptcy than receive more federal funding. Why taxes matter Under such an unrealistic system -- minimum federal support and minimum state taxation – Republicans just as well should agree to be living in a third world country where there is practically no government (scant revenues), no services, no infrastructure, no safety nets. Just a few rich people, small middle- and working class, and a vast majority poor. But all of them (including the rich) would share the space of living in an ugly, polluted, crime-infested country with bare infrastructure and few jobs. On top of that, there would be low consumer buying power (a bigger nail to seal the coffin on their business enterprises than paying taxes) and poorer quality workforce. How so? Because government helps to educate the masses and provide a baseline that enable children to become productive adults and good consumers. Reasonable Republicans know their wealth doesn’t come for free. They know their tax dollars go toward building an environment of prosperity that includes legal protections, a healthy consumer base, quality workers and infrastructure. And lobbying against tax hikes isn’t unreasonable in and of itself, but encourages checks and balances for equitable taxation and smart, non-wasteful spending. Taxes should be levied fairly Nobody likes to pay taxes. But the answer cannot always be a resounding no. At the same time, lawmakers must tax citizens fairly and look (continue on page 3)
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FROM THE PUBLISHER
ntroducing an increase of any tax from the GET to income has always been a highly contentious issue. Due to the State’s budgetary shortfall in excess of $2 billion caused by the coronavirus pandemic, it was expected that tax hike proposals would be in the mix this session to balance the budget. State lawmakers were also aware that federal money could be made available if another Covid Relief bill was passed by Congress. But whether Congress would pass one or how much was unknown at the start of the session so tax bills were introduced in January to give lawmakers options. Now into March with Hawaii’s share of federal dollars already known at $6.1 billion, some residents and businesses are becoming increasingly jittery that so many tax bills have survived the legislative crossover mark. It could be that lawmakers are buying more time to allocate federal funds with no intention of passing them into law. Or it’s possible that some could pass with amendments (less aggressive tax hikes). For our cover story this issue, associate editor Dennis Galolo gives us the details on the biggest tax increase package, Senate Bill 56 (the latest version as of press time), that could raise income tax on individuals making more than $200,000 a year, increase capital gains tax, impose a single rate for corporate income, increase conveyance taxes for the sale of properties, and repeal certain GET exemptions. Members in the community chime in why they are in support of or opposed to the bill. The general consensus: those who are okay with SB 56 passing want to ensure critical government services are not slashed; while those opposed to it say residents and businesses are already struggling, and passing any tax hike would exacerbate their struggle and couldn’t come at a worst time. Expressing opposition to the proposed tax hikes, we have two articles in our Open Forum section. Sherry Menor-McNamara, president and CEO of the Chamber of Commerce of Hawaii, wrote: “The Chamber of Commerce opposes this measure because of the significant effect the increases would have on Hawaii’s economy, the rebuilding of our local businesses, and the restoring of jobs.” Joe Kent, executive vice president of the Grassroot Institute of Hawaii, said “If our lawmakers really want to generate more tax revenues, they should stop playing with fire and instead focus on growing the economy.” Also in this issue, HFC columnist Elpidio Estioko gives us the details of the $1.9T Covid Relief bill (American Rescue Plan) that was signed into law recently. HFC columnist Emil Guillermo writes “In 2020, It’s VAX AMERICANA. But Will We All Be Together by July 4th?” an article on vaccination. He also brings attention to the rise in hate crimes against Asian American and Pacific Islander (AAPI) community. Be sure to read our other interesting columns. Lastly, we’re happy to report good news in this issue. The Bayanihan Clinic Without Walls (BCWW) is extending its Job Loss Assistance Program (JLAP) indefinitely to help workers who lost their medical insurance due to COVID-19. BCWW volunteers will provide free medical consultations. Find out if you qualify for this free service by calling the Hawaii Department of Health Bilingual Health Services at (808) 832-5865 or BCWW at (888) 674-7624. Spring has just begun this week. It’s usually a time associated with rebirth and renewal. May the spring season bring you renewed hope and a new beginning from the doldrums and hardships of 2020. Thank you to our advertisers, readers and community for your continued support. Until next issue warmest Aloha and Mabuhay!
Publisher & Executive Editor Charlie Y. Sonido, M.D.
Publisher & Managing Editor
Chona A. Montesines-Sonido
Associate Editors
Edwin QuinaboDennis Galolo
Contributing Editor
Belinda Aquino, Ph.D.
Design
Junggoi Peralta
Photography Tim Llena
Administrative Assistant Lilia Capalad Shalimar Pagulayan
Editorial Assistant Jim Bea Sampaga
Columnists
Carlota Hufana Ader Elpidio R. Estioko Emil Guillermo Melissa Martin, Ph.D. J.P. Orias Pacita Saludes Reuben S. Seguritan, Esq. Charlie Sonido, M.D. Emmanuel S. Tipon, Esq.
Contributing Writers
Clement Bautista Edna Bautista, Ed.D. Teresita Bernales, Ed.D. Sheryll Bonilla, Esq. Rose Churma Serafin Colmenares Jr., Ph.D. Linda Dela Cruz Carolyn Weygan-Hildebrand Amelia Jacang, M.D. Caroline Julian Raymond Ll. Liongson, Ph.D. Federico Magdalena, Ph.D. Matthew Mettias Maita Milallos Paul Melvin Palalay, M.D. Renelaine Bontol-Pfister Seneca Moraleda-Puguan Mark Lester Ranchez Jay Valdez, Psy.D. Glenn Wakai Amado Yoro
Philippine Correspondent: Greg Garcia
Neighbor Island Correspondents: Big Island (Hilo and Kona) Grace LarsonDitas Udani Kauai Millicent Wellington Maui Christine Sabado Big Island Distributors Grace LarsonDitas Udani Kauai Distributors Amylou Aguinaldo Nestor Aguinaldo Maui Distributors
Cecille PirosRey Piros Molokai Distributor Maria Watanabe Oahu Distributors Yoshimasa Kaneko Jonathan Pagulayan
Advertising / Marketing Director Chona A. Montesines-Sonido
Account Executives Carlota Hufana Ader JP Orias