Candidate Green promised dramatic tax reform. Now Gov. Green is seeking compromise
HONOLULU (HawaiiNewsNow) - As a candidate, Gov. Josh Green repeatedly promised a dramatic tax reform ― eliminating the 4.5% excise tax on food and drugs.
But after lawmakers have said that was probably unrealistic, he’s floating potential compromises.
With repeal now appearing unlikely, Republicans are crying foul.
In an interview Tuesday morning on Hawaii News Now Sunrise, Green said he wasn’t giving up on repealing the excise tax, but he also cited political realism.
“I’m proposing that bill, and I’m going to fight for it,” Green said.
“The challenge here is that the Legislature doesn’t love that bill because 30% of the general excise tax that is paid in the state does come from tourists and I respect that.”
So despite a surplus that could approach $3 billion by next year, the governor says he’s willing to aim relief at lower income residents.
“Not millionaires, right? We’re talking about people that are making less than 60 grand, probably give them the tax break,” Green said.
State Rep. Diamond Garcia, who was vice-chair of the Hawaii Republican Party before his election to the House, said he suspects Green had heard concerns from lawmakers before the election but made the promise anyway.
“We did the research,” Garcia said of his fellow GOP members.
“This would save the average family about 8,000 bucks a year. He knew the bill would not pass and so it’s unfortunate that during the campaign he basically lied to the whole state.”
But Democrats who lead the Legislature aren’t sure what Green knew about their concerns.
Sen. Donovan Dela Cruz, said multiple tax relief proposals were being discussed based on how the rest of the state’s needs add up. He added the state’s currently solid financial standing “will not last forever.”
“We still have lots of money that we have to put into infrastructure. That will really provide much more permanent financial relief for our residents making sure they have a roof over their heads,” Dela Cruz said.
Because the amount and form of tax relief would likely depend on other budget decisions, it could be months until the final outcome is decided.
Copyright 2023 Hawaii News Now. All rights reserved.
