Advocacy & Public Policy

Nonprofit groups, unions urge Legislature to hike GET

Advocates for the poor and members of Hawaii's largest public worker unions rallied at the state Capitol on March 23 to urge lawmakers to hike the general excise tax 1 percent. The demonstrators said government services have been cut so deeply and so many public workers laid off that the only alternative now is to hike the excise tax 25 percent.

That would mean a general excise tax hike from 4.5 percent to 5.5 percent on Oahu and 4 percent to 5 percent on the neighbor islands. Legislative leaders have been hesitant to consider an excise tax hike in an election year.

"As we talk to the legislators there are many who support it, but they say leadership is not going to support it. So, we need those people to stand up and to do what is right because as Alex (Santiago) has said there is going to be long-term impact," Hawaii Government Employees Association Deputy Director Nora Nomura said. Santiago is executive director of PHOCUSED, a coalition of nonprofits providing health and human services.

The groups went door-to-door at the Capitol to urge lawmakers to support an excise tax increase. Meanwhile, outside, on Beretania Street, a group called Overtaxed Hawaii protested any move to raise taxes.