Saturday, May 9, 2009

Hawaii is a Tax Hell

Hawaii government has passed taxes increases to enable them to balance their state budget. They voted to increase taxes vs cut back on state expenses (e.g. reduction in state spending/manpower). The primary impact of tax increases will negatively impact tourism. Yes, the idea was to make tourists pay for the Hawaii's state government budget shortfall. Hawaii is a tax hell!

The state has voted to officially raise hotel taxes by 28%, from 7.25 percent to 9.25 percent, over the next two years. Keep in mind that this is an increase in state taxes and there are still local county taxes in Hawaii, making actual hotel taxes closer to 14% in some counties.

"No one likes to raises taxes. But let's face it. Let's be real. If you're going to raise the tax, the visitor industry is a less bitter pill to swallow than a tax on local people," said Sen. Clayton Hee, D-Kahuku, Kanoeohe.

"We don't exptect this increase to drive tourists away," said Rep. Joey Manahan, D-Kalihi, Kapalama.



Personally, I don't understand why anyone would want to go to Hawaii when there $$$ can buy so much more of Paradise elsewhere. Think about it & shop around. Better value is to be had. Hawaii is no longer a Paradise, and there are still many places one can vacation that really are a place of Paradise.





source: Mark Niesse, the asspciated press.

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