| | COMMENTARY Hawai‘i Tax Surplus Higher Than Exxon Profits Commentary by Rick Feingold, Makawao resident I read with astonishment the profits that Exxon made in 2005 on $391 billion of revenue. It was $36 billion and change. About 9.2 percent return on revenue. A heck of a lot of petroleum the American consumer purchased and at a premium paid because of the war in Iraq. Many feel it is gouging and taking advantage of the situation we face in today's energy-starved world.
I wondered how much money the federal and state governments collected on gas taxes. The State of Hawai‘i leads the nation in state and local taxes on gasoline, 35.1 cents per gallon.
There is a 0.12 % environmental response tax on fuel sold – did you ever hear about that one? The gas station collects it and pays it back to the State of Hawai‘i. Also, we are taxed five cents on every barrel, or 42.5 gallons, of petroleum product sold by the wholesaler to the retailer or end user. Another hidden tax the consumer is paying.
Through these taxes, billions of dollars have been taken in to protect our environment.
Federal legislation was enacted in 1993 and it established the Superfund program. I am in awe and wonder in what a great job the feds are doing in cleaning up the environment! And let’s not forget to thank the Maui County Council who, on July 1, 2003, added another 1.5 percent to gas prices, making Maui the highest-taxed island in the chain. The feds take an additional 18.4 cents per gallon.
In real dollars, our local, state and federal governments collect $50 billion annually. This means that gas taxes as a percentage of the product price amount to about 29.5 percent. Imagine paying 29.5 percent on everything we purchase. Most Americans would be mad as hell. Also, the feds tax diesel fuel at even a higher rate, as do most states. Some Washington politicians are proposing to raise the federal gas tax another $1 dollar per gallon. However, there is some good news – our State legislators passed a law which takes effect on April 2, 2006, that will require 10 percent ethanol to be added to all gasoline and it is exempt from the 4.166 percent general excise tax. That's a good step, but will we see any reduction (12 cents) in the price at the gas pumps?
After perusing a local newspaper, I learned that we have a $600 million state surplus. With $9 billion in revenue, our state had quite a financial boom year. A 15 percent return on revenue. Better than Exxon's 9.2 percent. Furthermore, on all goods and services we are taxed an additional 4 percent on all transactions. The highest and most progressive tax in America. With the prices of real estate going through the roof, will there not be a substantial rise in property taxes? How many taxpayer dollars will this bring into the state coffers? I am not hearing our elected officials discuss this revenue! And when and if they do, I would like to know how much more real spending will go to assisting i.e., frail elderly, the disabled, and children who need our help to compete in the 21st century. There are many humanitarian issues that we could address in lieu of self-serving pork barrel politics. Why do our politicians not address real issues, or do they watch opinions polls and prefer to stay away from any issue that is controversial and not popular with the “good ole boy” network?
Governor Lingle wants to refund $1568 per family who earn less than $50,000 per year. I do not want to sound cynical, but how many of these folks paid state income tax or are we shifting the wealth? How many people have moved to our island and scrape by, and will they benefit by a refund, at the detriment of our long-term residents? Our ‘ohana, without consideration, will not be able to remain on Maui if high taxes and the cost of living continue to rise at such alarming rates.
Democratic critics say that the Governor's proposed tax breaks, if given to the taxpayers who paid the state income tax, is not enough to make any substantial difference ($100 per taxpayer). How arrogant our elected officials to think that this small amount won't help the people. Yes, it is a minute amount of money, but remember it is $600 million, not chump change.
The Democrats, on the other hand, want to improve schools and infrastructure – a noble goal, but how effective are our public schools? Not that I do not want to improve the school system for our keiki, they are the future of America. I drive by the dilapidating structures and watch as children are the pawns of politicians. With the in-fighting of an educational bureaucracy, it appears that school administrators are more interested in protecting their jobs and pensions than teaching and educating the next generation.
The next time you are stuck in traffic or hit a pothole, think how helpful our government has been in improving our roads, or hauling away unsightly cars and appliances that litter our island.
Is it shameful for a private company to make an enormous profit? We live in the largest capitalist country in the history of the planet. Is it not equally shocking that our state government is doing 50 percent better? I wonder if their stockholders, I mean taxpayers, will be as delighted as Exxon's when they receive their quarterly dividend check. Oh, I forgot. We don't receive dividends. We pay more taxes and get lip service from our elected officials who believe that they can manage our hard-earned money and we the taxpayers who paid the $600 million should not have this piddly refund. The arrogance of our public officials is enough to make me vomit! |
Karaoke Contest WAILUKU- Organizers of the 6th Annual Maui Matsuri recently announced the addition of a statewide karaoke contest to precede the Maui Matsuri festivities on Saturday, May 20, at the Maui Community College campus.
Scheduled to be held Friday, May 19, at 6:30 p.m. at the H.P. Baldwin High School Auditorium in Wailuku, the karaoke contest will have three age divisions, with winners in each age division to receive a trophy, and the overall winner to be awarded a gift certificate for a round-trip flight to Japan.
The event is being held to promote the Japanese language and culture through karaoke.
Contest details will be announced in February.
For more information on sponsorship opportunities or volunteering to serve on a committee to coordinate the karaoke contest, call Lynn Araki-Regan at 870-0115 or e-mail araki-regan@hotmail.com.
Look on the UPside!
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www.ontheupsidewithteri.com
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