Issue Position: Cost of Living

Issue Position

Here are the facts behind the high costs of living and resulting poverty our families experience every day:

The average family in Hawaii, especially in South Kona and Ka'u, is struggling with the extremely high cost of living. Almost 50% of our keiki go to school hungry and our families receive more welfare subsidies form the sate and federal government than anywhere else in the state
Hawaii County, with an estimated population of 190,000, and a work force of about 83,000, has been designated a poverty-stricken county by the feds, with over 17% of its families of four earning less than $27,000/year income.
Our unemployment rate still hovers over 5.9%, as of April 2014, the highest in the state (average 4.4%). Our economy is stagnant.
Our cost of living is 16% higher than on the mainland.
We have fewer businesses offering jobs with sustainable wages. There are few, if any, new business startups in HD5 or HD6 with meaningful employment opportunities.
Families are moving off-island to survive. Our keiki are leaving the island to find education and good paying jobs.
The state has one of the highest personal income tax brackets in the country -- 11%. The effective tax rate is 8.5%. Estimated income taxes of $3,533 per capita (6th highest in the US). Our GET is really a pyramid retail tax amounting to about 11% total on each product or service produced and sold here in Hawaii.
Electricity is the most expensive in the country at $.46/KWH on the Big Island. The rest of the country enjoys an average energy cost of about $.11/KWH
The Jones Act -- restrictive shipping rules requiring US manufacture of vessels, ownership and crewing raise costs of shipping products to Hawaii by at least 30%

My proposed cost cutting solutions include:

Energy -- Cut energy costs in half from $.46/KWH to $.21/KWH - develop more geothermal energy plants along the Kilauea Rift Zone. Improve transmission lines to populated areas. Look at your monthly energy bill and cut it in half for your estimated monthly savings.
Personal Income Taxes -- We need to cut each marginal tax bracket by 20%. Estimated savings of about $700/taxpayer per year.
GET -- Eliminate GET on food (est. savings of $300/year per person), medicines and medical services (est. savings of $170/person per year) . Eliminate GET on the first sale of food products off farms and ranches.
Vehicle License Fees -- Roll back fees in half by returning the vehicle registration fees to the levels in place in 2010 (est. Savings of $100/year)
Jones Act -- Amend Jones act to exempt shipments to Hawaii from mainland and/or allow shippers to Hawaii to purchase less costly vessels overseas and continue to flag them in US and crew them with at least 75% US crews

Every dollar counts. Our families need immediate relief to stay afloat.

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