The liberal panacea: raise taxes.
Democrats complete override sweep of Lingle vetoesAdvertiser Staff and News Services
One by one they fell.
As they promised, Democratic lawmakers today overrode all four of Gov. Linda Lingle's vetoes of measures to raise taxes to balance the state budget.
One day after Lingle used the Capitol rotunda for a public veto ceremony, Democrats used their majority to render that exercise moot.
A hotel room tax increase from 7.25 percent to 9.25 percent is now law.
So is an 11 percent tax rate on the personal incomeof Hawaii's wealthiest residents.
And finally, increases in the conveyance tax on the sale of real estate valued at more than $2 million, and a jump in taxes on non-cigarette tobacco items such as snuff and cigars.
Democrats say these tax increases will generate more than $87 million in revenue next year.
Perhaps the most argued increase was the hotel room tax.
The 2 percent hotel room tax increase translates into a $150-per-night room now costing $3 more.
Democrats say taxing tourists — instead of residents — is the best way to help balance the state's budget, which is short on cash due to the slumping economy.
Republicans say it will damage Hawaii's already-reeling tourism industry, delay the state's economic recovery and result in more layoffs.
The tax hike is expected to raise about $30 million next year and $60 million in 2011.
The personal-tax increase applies to individuals making more than $150,000 a year and joint filers who make in excess of $300,000.
The increase is expected to raise nearly $25 million next year.
Democratic Rep. Pono Chong says the tax rate of 11 percent — the highest in the nation — will only affect the richest 2 percent of Hawaii's residents.
But Republican Rep. Kymberly Pine says it will also affect 27,000 small business owners, resulting in more business closures and layoffs.
The tobacco measure increases the tax on tobacco products other than cigarettes from 40 percent to 70 percent. The tax on cigars would increase to 50 percent.
Lingle previously signed a 4-cent per cigarette increase into law that would raise more than $22 million next year. This tax hike on non-cigarette products is expected to generate about $1 million.
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