The Kooks Are Targeting Real Estate For Tax Increases!
February 8th, 2010 categories: Rants & Riffs, The Market
Every January Honolulu taxpayers should be very concerned because the Hawaii State Legislature goes into session. If you have been watching the news you might be aware that all levels of Government are experiencing revenue short falls. Rather than curbing spending, the majority of our elected officials are marching lockstep toward raising taxes to cure the problem they created. Today’s Pacific Business News is reporting that representative Rida Cabanilla is proposing to levy a new tax of 1% of any commercial or residential property sale.
“The proposed tax, which would take effect July 1 and sunset after five years, would be on the gross proceeds of a sale, minus a real estate salesperson’s commission and conveyance tax, and would apply to both commercial and residential properties.” CLICK HERE TO READ THE ENTIRE PACIFIC BUSINESS NEWS ARTICLE.
I am not going to bore you with all of the reasons that this proposal is bad for real estate and the Hawaiian economy. Unfortunately, Hawaii’s governmental officials are blind to the idea that they need to decrease spending first. Then they need to reduce taxes so those of us that work at expanding the economy and jobs, can help to grow the state out of economic doldrums. Think about it.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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Is Taxing The “Rich” The Answer?
May 18th, 2009 categories: Rants & Riffs
The Hawaii State Legislature raised the top income tax rate in Hawaii to 12% last week. News reports say that the increase gives Hawaii the highest state income tax rate in the Nation. The Governor vetoed the bill and our elected officials over-road her denial. This begs the question, is raising taxes on the wealthy going to improve our local economy? Today’s Wall Street Journal on-line had an excellent article that may hold the answer.
“Here’s the problem for states that want to pry more money out of the wallets of rich people. It never works because people, investment capital and businesses are mobile: They can leave tax-unfriendly states and move to tax-friendly states.”
CLICK HER TO READ THE WSJ ARTICLE
I know what your thinking, what does this have to do with Honolulu real estate? I think it could have a direct effect, at some point upper income individuals could say, “I love Hawaii, but it is not worth putting up with the tax burden!” At which point they pick a Sun Belt state that has a more favorable tax structure. They then take all of their marbles and expertise to benefit another state and guess what, Hawaii loses out! Real estate could be hurt by this movement as there could be fewer resident buyers for upper end homes.
Upper income individuals are generally the engines that drive job creation, private enterprise and prosperity. We can’t do anything about this tax increase until the next legislative session or maybe the next election, but it is time to “throw the bums out!”
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