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    Pass regulations that respect freedom, choice and tradition

    By Keli‘i Akina

    I’ve been saying for a long time that Hawaii lawmakers should be careful to take a light-handed approach with occupational licensing — because as we’ve seen time and again, government regulations can have unintended consequences.

    Back in December 2022, I wrote about the negative effect that licensing requirements can have on niche beauty services that aren’t even taught in cosmetology schools, such as natural hair braiding.

    Natural hair braiding, I noted, is “often passed down as part of a cultural tradition and is given little attention in traditional cosmetology schools.”

    This is similar to what is happening regarding Native Hawaiian healing practices utilized in childbirth, which have become the focus of a lawsuit making its way through state court.

    Now, I know that braiding hair is not healthcare, but bear with me.

    In 2019, the state Legislature passed a law stating that anyone who provides “assessment, monitoring, and care” during pregnancy, birth or post-partum is required to pass a program accredited by the Midwifery Education Accreditation Council or the North American Registry of Midwives — neither of which are reported to specialize in Native Hawaiian cultural practices or even offer classes in the state.

    However, the law did include an exception that allowed mothers-to-be to sign a special form allowing them to make use of an unlicensed birth attendant, but the exemption was only temporary and expired in 2023.

    The Legislature had four years to pass a more permanent exception for birth attendants but failed to do so. Meanwhile, the rest of the law remains in place, effectively making it a crime for anyone without a midwifery license to assist mothers during childbirth.

    This unfortunate scenario prompted six midwives and three mothers to file a lawsuit arguing that this law, without the exemption, makes it impossible for Native Hawaiian cultural practitioners to provide maternal care.

    The plaintiffs were dealt a win in the case this week when Hawaii First Circuit Court Judge Shirley Kawamura issued a preliminary injunction — based on the state’s duty to preserve Native Hawaiian customs — that prohibits the state from “enforcing, threatening to enforce or applying any penalties to those who practice, teach, and learn traditional Native Hawaiian healing practices of prenatal, maternal and child care.”

    Judge Kawamura’s ruling doesn’t apply to any other non-licensed birth attendants, and the ultimate outcome of the case remains to be seen, but in any case, this lawsuit highlights how easily a well-meaning regulation can restrict important freedoms.

    Broad regulations, even well-meaning ones, can have negative consequences, and lawmakers who consider expanding regulations should consider the possible repercussions. Who might be out of a job? What cultural traditions could be restricted? Which freedoms will be curtailed?

    I hope our state legislators will right this wrong by passing permanent legislation aimed at exempting non-licensed birth attendants from the state’s midwifery licensure law — and take care in the future to pass regulations that respect freedom, choice and tradition.
    _____________

    Keli‘i Akina is president and CEO of the Grassroot Institute of Hawaii.

    Hawaiian-German Music Legend Tribute to Henry Berger

    PLEASE JOIN US FOR A FREE CONCERT & LECTURE HONORING GERMANY’S GIFT TO HAWAIIAN MUSIC:

    HENRY BERGER Sunday, August 4, 2024,5 PM to 7 PM Kawaiahaʻo Church | 957 Punchbowl Street | Honolulu

    On this day, we will celebrate the life and legacy of the “BANDMASTER from COSWIG”, born on August 4, 1844, in Prussia. 

    BERGER left an enduring impact on Hawaii’s musical heritage and was coined by Queen Liliuokalani as the “Father of Hawaiian Music“.He led the Royal Hawaiian Band for 43 years (1872 to 1915) and played a pivotal role in arranging “Hawai‘i Pono‘i,” the national anthem of the Hawaiian Kingdom.



    The highlight of the event will be a free concert by the Royal Hawaiian Band, featuring Bergers original music, followed by a brief presentation on the Berger’s life & legacy by our current and revered RHB Bandmaster CLARK BRIGHTThe German Benevolent Society of Honolulu andthe Honorary Consul of the Federal Republic of Germany and the Royal Hawaiian Band are collaborating to ensure a memorable celebration.


    Please don’t miss this unique event celebrating Berger’sremarkable influence on Hawaiian music.

    See you there and Aloha! Brought to you by Josann Jenks & Denis Salle supported by the Board of the GBS

    About The German Benevolent Society:

    Est. in 1888, the GBS of Honolulu fosters German culture and heritage in Hawaii through events, educational programs, and community outreach, celebrating the contributions of the German community to Hawaii’s diverse cultural landscape. Follow the GBS of Honolulu on Instagram:@gbshonolulu

    About The Royal Hawaiian Band:

    Founded in 1836 by King Kamehameha III, the Royal Hawaiian Band is the only band in the United States with a royal legacy and is currently an agency of the City and County of Honolulu. The mission of the band is to promote and foster music, preserve the Hawaiian musical culture, inspire young musicians, and enrich the lives of the people of Hawai‘i.

    Why an Annual GET Return?

    For those of you who pay GET, here’s a quick quiz.  Let’s say you are a monthly filer.  How many returns do you have to file to report one year of business activity?

    The answer is thirteen.  Twelve will be monthly returns on Form G-45.  One will be an annual reconciliation return on Form G-49.  If your answer was twelve, take your “F” and go to the back of the class.

    Don’t underestimate the significance of the annual reconciliation return!  Here are some reasons why:  First, the three-year statute of limitations that the Department has to assess any additional tax never starts running until the annual return is filed.  Second, all exemptions, deductions, reduced rates, and other “tax benefit” items can all be disallowed unless the annual return is filed within a year after it is due.  Third, if the annual return isn’t filed the statutes of limitations start behaving crazily. 

    What do I mean by that?  Consider this case, which is one of the first I had when I was representing taxpayers.  My taxpayer’s auditor, at the time kind of an unknown guy, would go on to become one of the Department’s “ace” auditors and top producers (see how scary that sounds in a non-sales context?) and would be significantly promoted before retiring from the Department.  My taxpayer was being audited for the years XX1, XX2, and XX3, between seven to ten years ago.  It had filed all required monthly returns, but no annuals.  The auditor innocuously said, “I don’t have an issue with the total amount of income reported.  But I think $x of the year XX2 income belongs in XX3.  So I am going to assess you for year XX3.” 

    At this time I was still pretty green in terms of tax experience, so I thought, well, that would give the client an overpayment for year XX2.  So, I replied, “That looks fine to me.  But I’ll file a refund claim for year XX2.”

    “Go right ahead,” the auditor replied.

    A few days after receiving the assessment for year XX3 (which included more than a trivial amount of penalties and interest), I had the client file a claim for a refund for year XX2.  “Six of one, half a dozen of the other,” I was thinking.  “It’ll work out.”

    About a week later, I got a tersely worded, computer-generated letter.  There would be no refund for year XX2.  When no annual return has been filed, there is another part of the statute of limitations that kicks in and says that any claim for refund has to be filed within three years after payment of the money.

    Needless to say, the client was furious.  (Even though the client could have avoided the problem entirely if he had filed annual returns.)

    So what is it about the annual return that gives it such outsized significance?  Taxpayers in other states file twelve monthly returns instead of thirteen, and they don’t have to go through these kinds of headaches.  If there is some kind of accounting adjustment at the end of the year, they can just pull out the proper month’s return and amend it.  Is there some other significant information that appears on an annual return that can’t be disclosed on one of the monthlies?  Not really.  So why don’t we just make life easier for everyone and get rid of it?

    Nah.  That would be too simple.  First there have to be studies, and blue-ribbon commissions, and a few expert reports.  Maybe then someone will begin to think about this as an actual beneficial idea.

    America Needs Civility, Not Unity

    Political vitriol spilled over into violence recently with the assassination attempt on ex-President Donald Trump, prompting pundits and politicians to preach for unity. President Biden addressed the nation to call for national unity in response to the increasingly violent political atmosphere, asking everyone to tone down the negativity. In a nation increasingly divided, unity seems the only solution to avoid further disintegration of our nation.

    Unity, however, is a lot like peace. It’s sounds great to want peace, but what is its price? 

    Peace exists when there is no war. However, we can have peace through victory, or peace through defeat. Subjugated people can be peaceful, even if they are unhappy. We want to be the peaceful winners, not the peaceful losers. We want peace on our terms, or it is a bitter peace.

    Unity, like peace, sounds like a good thing until you look at it more closely. 

    Unity means those who are different must be convinced, or silenced. Differences are put aside for the purpose of coming together, realizing we are all members of the same club. It is a monoculture of thought and opinion that we are all supposed to believe, which is sweet if you already believe it, but bitter if you don’t.

    We should not want unity of thought, especially in the realm of politics. Disunity of thought and politics is natural for a large population of diverse people with diverse backgrounds and cultures. Open debate and dialogue are essential for a democracy to work, and a difference of opinions adds color and context to political debates. Calls for unity serve to suppress opposing opinions and squash free debate. Debate only exists when there are opposing positions, and does not exist within a unity. 

    What our nation needs now is not unity, or peace. We need civility. 

    A nation in transition, with polarized politics, needs more open dialogue and debate, not less. We need to express our beliefs in a civil way, as part of the healthy debate over our political future. 

    Being civil means accepting that others disagree with you without having to hate them and want them dead or canceled from society. It means that we respect the diversity of perspectives that together constitute our society, even if we vehemently disagree. 

    Here are some suggestions of how to be civil while still being true to your beliefs. 

    1. Give others a chance to speak without interrupting them.
    2. After they speak, summarize to them what they have said, to show that you were listening and to confirm that you understand their position. 
    3. Present your position without name calling or hateful words. 
    4. After speaking, ask others to summarize what you said to make sure they understand you.
    5. Don’t speak over one another. Take turns.
    6. Don’t make threats, and don’t use threatening body language.
    7. Keep an open mind if you can, since you might be wrong, after all.
    8. Think before you speak, and realize that changing your mind when exposed to new ideas is a good thing, since it improves the validity of your position. 
    9. Try using empathy to understand the motives and experiences behind those who disagree with you. 
    10. Accept that you can’t always get your way when you are part of a group. 
    11. See compromise as a way of achieving inclusion of diverse ideas. 
    12. Keep a sense of humor.
    13. Remember that you can disagree with someone, and still defend their right to free speech.

    The only unity we need is the mutual agreement to be civil with one another. We can hate and still be civil. We can disagree on basic political philosophy and still be civil. Through civil actions we can maintain our civilization. 

    Unity is the end, not the means. The means is being civil with one another. People have to agree to not fight or kill one another before they agree to joining hands in national unity. We need a unity of civility. The rest will work itself out, as politics usually does. 

    Will Evidence Based Medicine (EBM) Turn Medical Care from an Art into a Science?

    Sydney Ross Singer, Medical Anthropologist

    7/22/24

    Evidence Based Medicine, or EBM, is the new catchphrase suggesting that healthcare goals can be better reached by using the best research available to inform doctors and patients. But consumer beware! EBM is another power grab by the pharmaceutical industry, and is more about censoring alternative treatments than anything else. 

    The assumption in the term “evidence based medicine” is that current medical care is not based on solid scientific evidence. And this is surprisingly true. Much of the time, things are done because of tradition, or due to effective marketing of a product. Medicine, after all, is an “art”, not a science. Doctors “practice” medicine, learning on each patient. Knowing what to use for a treatment is really guesswork, as the doctor cannot know how a particular patient will react to any particular drug or therapy. 

    The art of medicine also requires that doctors understand the cultural underpinnings of medical complaints. Humans are complex social organisms with lots of cultural impositions on the human body and mind, with often striking health consequences. Humans also have powerful minds that can create and cure disease through sheer willpower. These are called the placebo and nocebo effects, where people experience health impacts from positive or negative expectations. Doctors must interpret disease through not only a biological lens, but also with an eye on socio-cultural factors and personal expectations and beliefs. And doctors must filter out their own prejudices and biases, and ascertain those of their patients, too, in order to mitigate personal subjectivity and best develop the most effective treatment plan.

    The art of medicine also includes knowing the science of medicine and how the body works. And this is where evidence based medicine comes into the picture, trying to turn medicine from an art into a science. 

    According to proponents of EBM, medical care is too diverse as an art, with different doctors employing different treatments for the same condition. According to EBM, medical care should rely on the best available evidence, which would standardize treatment for people with a similar condition. 

    Using EBM, a doctor is supposed to ask a specific question about their patient’s condition, and then do a literature search to see what studies have addressed that condition. These studies are then ranked according to reliability, with large reviews and meta-analyses taking priority over single studies, which take priority over a doctor’s opinions or experiences. Statistical conclusions based on large sample sizes are valued over case studies of specific examples. Studies of the effectiveness of different treatments are to be used to determine the best treatment option. Even an artificial intelligence program can treat disease using this algorithm. 

    This sounds like a good way to fight against pseudoscience and medical charlatans. There is no doubt that scientific information can benefit medical decision-making and weed out useless and harmful treatments. But there is a fly in this EBM ointment. 

    Here are some of the problems with EBM:

    1. All research studies need funding. Funding research is an economic and political issue. It’s the art of business to know what studies to pursue, since research is very expensive. But the results can be extremely profitable, which drives the research agenda forward. This means that studies are done for profit motive, not for scientific plausibility. Lots of plausible theories are ignored, and research into these theories goes unfunded, because of economic realities and pressures, not because of their inherent worth and potential as theories. 

    2. If there is no research into a particular medical treatment or approach, then EBM would disallow its use. Doctors are supposed to base their judgments on solid research evidence. If there is no evidence, there can be no scientifically-justifiable reason for pursuing that approach. However, this says nothing about the benefit of that unstudied approach. It could be the best approach to treatment, but without data and evidence to support its use, the medical industry will say that there is no support for that approach, and will ignore it. They equate lack of studies to lack of validity or medical worthiness. 

    This means that new ideas and treatments will be discarded, ignored, or labeled as pseudoscience if there are no studies to back them. Note that this is not the same as having studies showing these alternative approaches are bad. EBM excludes anything that is not studied, and assumes that if it has not been studied, then it is not valid. This allows EBM to refute as pseudoscience anything that has not been scientifically studied. 

    3. By relying on funded research for all medical advice, EBM censors any alternative theories or treatments that are economically threatening to the scientific status quo and have, therefore, not been studied. By ignoring a subject for research funding and attention, those who control the EBM agenda can monopolize medical care. If doctors cannot use any treatment that has not been studied scientifically, and is backed by lots of statistical analyses, then medical practice can be limited to only those treatments and theories which the EBM proponents find profitable to research. This will limit development of new medical approaches and theories, and stifle medical advancement. Whoever controls the search for evidence controls medicine, and controls all the people who seek medical care.

    4. This EBM model tries to strip the art out of medicine in the name of science, but we need to look at the quality of the science used by EBM. Unfortunately for everyone seeking medical care, most of the research used by EBM comes from studies done on rats, mice, dogs, cats, monkeys, and other non-human creatures unfortunate enough to be exploited as research subjects. Animal research is a central component of modern medicine. In the search for scientific data, researchers have discovered that it’s easier to experiment on helpless animals than on litigious humans. This requires that scientists develop “models” of human disease in these poor non-human creatures. Every imaginable harm and disease that humans can experience is studied by simulating those harms and diseases in non-humans. This is shaky science, with false equivalences between species, and results of unknown application or relevance to humans. This is admitted by animal researchers, or vivisectors, who know that human trials are needed to assess human responses. But it’s easier to test treatments for simulated diseases in animals than it is to do so in humans. The results may be scientific and repeatable. But they are of unknown relevance to healthcare. And yet, such inhuman and inhumane evidence is used by EBM to “scientifically” determine the best treatment for a human. Animal studies are lumped in with human studies, and the result is pseudoscience, not human medical science. 

    Reliance on animal models completely overlooks the cultural factors that make us human. Unlike other animals, human biology is modified by human culture. You cannot understand people and their diseases without addressing cultural factors that influence health. Lifestyle is known to be the cause of most human diseases. You could not understand this from animal studies. Mice in a cage are not the same as humans in a city, even if you genetically engineer the mice to have diseases that look similar to human disease. This is not valid medical science. 

    Proponents of EBM will respond to this charge by saying that it is up to the doctor to assess the validity of all research. Each doctor  is supposed to read every study, including meta-analyses and reviews of large numbers of studies, to assess their validity. Of course, this defeats the purpose of review articles, which EBM places at the top of the information food chain, which pre-digest large amounts of research to save busy people the time of doing it themselves. In reality, then, doctors will accept what these review articles say without much reflective or critical thought, despite the ideal of an independent medical thinker that the EBM envisions. 

    Of course, EBM proponents will also defend animal research, and say it is central to medical research. Indeed, vivisection, with all its cruelty, psychopathology, and cross-species confusion, is central to medical research, just as an evil mind is central to a lie. But it doesn’t make it good science. Is science ever good when it involves cruelty? And can you trust those doing cruel science? 

    5. Even without human studies, reliance on large studies and statistical models to determine the best treatment for a given patient is the definition of impersonal medical care. It’s what medical care would look like when dispensed from some AI robot, which may be in the near future. Artificial Intelligence models, like ChatGPT, can access medical research and dispense treatment prescriptions, but is will be based on many animal studies of dubious validity, selected from a pool of studies that have been designed to promote certain healthcare products. This will create the same treatment for the same problem in different people, even if it isn’t the best treatment. The best treatment may have been censored and ignored for research studies due to lack of economic potential. 

    For example, a 38 year old male with back pain may be prescribed a pain reliever, and perhaps also a muscle relaxant, since there are lots of studies looking into pain relief with drugs. Just rest might help, too, although rest alone as a treatment is rarely studied by drug-focused research. Given little research about the benefits of rest, evidence based medicine has no evidence to support resting as a solution, so it will not be considered. The EBM model would search the medical literature for this problem, looking for the appropriate solution — but will ignore other modalities, too, such as chiropractic adjustments of the spine, which may solve the problem immediately without drugs or rest. Literature on the use of acupuncture or meditation to resolve back pain may exist, too, and may prove effective, but it is not something medical doctors do for patients, so it will not be part of the treatment options considered.  Doctors of medicine use medicine. Chiropractors, herbalists, acupuncturists, naturopaths, massage therapists, physical therapists, and other healthcare modalities are competitors with drug-prescribing doctors. If you go to a drug doctor, expect a drug solution, and the research they will rely on will be about drugs, not other non-drug options. 

    As you can see, EBM is really a marketing tool by drug companies, designed to limit treatment options to focus on drug solutions that make money. It tries to turn medicine from an art into a science, but it’s the science of how to make money on disease. 

    Realize that science is merely one method for systematically searching for information. If the assumptions are wrong, then the results will be useless, and could be harmful if believed and put into practice. Scientific research must plumb the depths of our ignorance while we are still ignorant. All the data in the world will not yield helpful treatments if the assumptions beneath that data are wrong. And you don’t know if this is the case until you try it on people.

    This means that statistics can point in a direction, but you don’t know if it is a false lead until you try it in a case study. EBM values statistical studies with large populations over small case studies of individual people, but in the end, the case studies are the proof. At least, they are the proof for the individuals studied in the case. It may not be the same for others. Not everyone is a data point at the center of the statistical curve. In other words, not everyone is “normal”, in a statistical sense. 

    In summary, EBM is a marketing ploy used by drug companies to promote their products and exclude any information or treatment that is not profitable, or is a threat to current profits. By demanding that treatment be based on scientific evidence, it excludes any approach that has not been funded for research. Literature searches are limited to drug-oriented modalities, so that alternative approaches, even those with studies to back them, are not included in the search. This is how drug companies maintain their medical monopoly. Make medicine rely on studies that show only one way to do things. Create a monoculture of medical treatment, where only the profitable treatments see the light of day. 

    As you can see, EBM is managing the opposition to the pharmaceutical model of disease and treatment, and maintaining control over the way doctors practice, and what alternatives patients are offered. It may keep out some quacks who prescribe treatments with no valid scientific or medical support. But it’s a quackery of its own, a faith in “science” that is based on economics and animal torture. 

    What people need is to develop the art of finding effective healthcare. People need to use their intuition and survival instincts to negotiate this medical quagmire of misleading animal studies and biased research agendas. 

    Living a healthy life is an art that no corrupted EBM science can replace. We are not machines, like the AI robots that will soon dispense EBM prescriptions. Humans are complex, culture-defined, often irrational, highly emotional, mostly ignorant, and sometimes self-destructive animals. Any science humans will come up with will reflect the subjective and self-serving nature of the human animal. There is no pure science, devoid of human impurities. 

    We must accept that doctors are guessing the best they can, that the science they use is shaky at best and changes radically over time, and that each person is a unique, culturally-defined being, not a data point. It means that medical care is an art by necessity, despite the attempts by drug companies to turn medical care into a one-size fits all treatment approach that can be dispensed by a robot, and which feeds the corporate bottom line. 

    Maui Council’s housing bills setting example for whole state

    By Keli‘i Akina

    When it comes to promoting housing growth, some of the most important work takes place at the county level. 

    That’s why my colleagues and I at the Grassroot Institute of Hawaii have been deeply involved in advocating housing reform at both the state and county levels. 

    Year-round, we work closely with county lawmakers to reform zoning laws, speed up permitting processes and remove regulatory “red tape” to facilitate more homebuilding.

    This week was especially encouraging for our efforts on Maui, which faces dual challenges of rebuilding Lahaina and promoting housing growth in general.

    For instance, the Maui County Council voted to enact Bill 87, which will allow temporary structures constructed under an emergency order to be used for as long as five years instead of the current 180 days. Furthermore, the bill was amended to include all temporary structures, not just those in the burn zone.

    Grassroot policy researcher Jonathan Helton pointed out in testimony supporting the bill that Maui residents in temporary housing have been living in uncertainty, wondering if they might be forced to move after six months. If the bill is signed into law by Mayor Richard Bissen, they will be able to rest easy knowing they will have enough time to locate or build a more permanent home. 

    The Council is also considering Bill 105, which would make it easier to rebuild structures as they were before a disaster. Maui County law currently requires that structures destroyed by more than 50% be rebuilt according to modern zoning codes, with very limited exceptions. It also disallows former uses of the structures, such as bed and breakfast operations, if they have been discontinued for more than a year.

    This hard-line approach to nonconforming structures and uses poses significant challenges to rebuilding Lahaina. Indeed, Helton noted in his testimony in support of Bill 105 that “restoring Lahaina’s community-focused and walkable town center will not be possible without zoning changes such as the ones proposed in this bill.” 

    Finally, I am pleased to say that the Council is considering Bill 103, which would increase the county’s housing supply by allowing more homes per lot in certain residential districts. 

    As Helton explained in his testimony, current Maui code allows only one primary dwelling and one accessory dwelling unit on 6,000-square-foot lots in R-1 districts, 7,500-square-foot lots in R-2 districts and 10,000-square-foot lots in R-3 districts. Bill 103 would increase the number of allowable primary dwellings on those lots to two, three and four, respectively. 

    All of these bills show that the Maui Council is making progress toward helping county residents find housing and rebuild their lives and businesses.

    And it’s a breath of fresh air to see such common sense reforms being considered by our local lawmakers. This kind of thinking — and action — is what I hope to see more of across the state.
    ________________

    Keli‘i Akina is president and CEO of the Grassroot Institute of Hawaii.

    Your 2024 Guide to the International ʻUkulele Festival of Hawaiʻi July 27th at Kapiʻolani Park

    The ʻUkulele Foundation of Hawaiʻi presents the International ʻUkulele Festival of Hawaiʻi scheduled for Saturday, July 27th, 2024, at Kapiʻolani Park in Waikiki.

    Founded in 2009 as ʻUkulele Picnic in Hawaiʻi, the annual all-day ʻukulele event is celebrating its 15th anniversary.

    Special sales booths include Kanilea ‘Ukulele, and MUSE Kailua, featuring specialty Hawaiian goods. There will be entertainment by ‘ukulele and Hula performance groups from Japan in the Hawaii Prince Waikiki Hotel lobby from 9:00 a.m. – 4:00 p.m. There will also be an International ‘Ukulele Festival of Hawai’i Special Concert at The Beach Bar at the Moana Surfrider, A Westin Resort & Spa, Waikiki Beach from 12:00 p.m. – 2:00 p.m. that day.

    “We are so excited to celebrate our milestone 15th anniversary and to share our mission of fostering stronger ties to the local community, spreading a message of Aloha from Hawaiʻi to the world,” said Sekiguchi. “Imagine the thousands of ʻukulele fans from around the world gathering in Kapiʻolani Park with our local community, enjoying this festival together—it’s truly a wonderful scene to behold. We eagerly anticipate this joyful event and all the smiles that the ʻukulele brings. See you on July 27th at Kapiʻolani Park!”

    The event will utilize the stage at the Kapiʻolani Park bandstand and will also include a special second stage to be built in the park. The lineup includes renowned Hawaiʻi and international performers Raiatea Helm, Jake Shimabukuro, Kalaʻe Camarillo, Mika Kane, Jody Kamisato, Crossing Rain, Craig & Sarah, Cynthia Lin, Corey Fujimoto, Benny Chong, Byron Yasui, Honoka, Kalei Gamiao, Sho Humphries & Tyler Donkoh-Halm, 1933 Ukulele All Stars, Tomoki Suzuki, Dr. Trey, Flatnine Ukulele Jazz Orchestra,  Keiki performances will include the Roy Sakuma Ukulele Studios, ʻUkulele Hale, and Kapālama Elementary School, and more. Additionally, there will be ʻukulele display booths by famous ʻukulele makers from Hawaiʻi and a special collection of vintage ʻukuleles from the Hawaiʻi State Archives. 

    “On behalf of ʻUkulele Festival Hawaiʻi, we congratulate Kazuyuki and the ʻUkulele Foundation of Hawaiʻi on celebrating 15 years of sharing their love and passion for the ‘ukulele with Hawaiʻi and the world,” said Roy and Kathy Sakuma. “For 52 years, it has been our mission to spread laughter, love, and joy through the ‘ukulele and we are thrilled that ʻUkulele Foundation of Hawaiʻi will perpetuate the ʻukulele through their newly named ʻUkulele Picnic Presents International ʻUkulele Festival of Hawaiʻi.”

    Event Overview: The 15th ʻUkulele Picnic Presents International ʻUkulele Festival of Hawaiʻi Kapiʻolani Park Bandstand, Waikiki
    Date & Time: Saturday, July 27, 2024, from 9:30 a.m. – 6:00 p.m.
    Facebook (www.facebook.com/ukupichawaii)

    Instagram (www.instagram.com/ukulelepicnichi)
    Website (www.ukulelepicnicinhawaii.org

    YouTube (www.youtube.com/ukupichawaii)

    We Need to Keep What We’ve Won

    Recently, the Legislature passed, and the Governor signed into law, a bill giving us taxpayers one of the largest, if not the largest, tax cut in Hawaii’s history.

    The bill was not without its detractors. Some screamed and howled and said that the wealthy, whoever they are, shouldn’t have received any cuts because, well, “they could afford it.”  Others, including agency heads in our state government, quietly fumed about how they could possibly afford to cut their budgets to balance the magnitude of the tax cuts. And they reportedly received a memo from the Governor requiring them to slash their budgets by 15%.  What a pain!

    For any of these detractors, especially the great majority who are not in elected office and thus don’t have to worry about facing the electorate in November this year or in 2026, the answer is simple. What’s done can be undone. They might already be thinking about bills to introduce next session to reverse all or some of this year’s losses.

    In the recent past, juicing up the tax code to bring in more revenue was the order of the day. In 2021, for example, lawmakers took away the sharing of the Transient Accommodations Tax with the counties that had been in place for decades, instead telling the counties that they would be able to impose their own hotel room taxes at a rate to be set by ordinance but not more than 3%.  After that law was enacted, which lawmakers had to do themselves by overriding Gov. Ige’s veto, the counties all scrambled to get a 3% county tax imposed. As a result, visitors to our islands who are staying in temporary accommodations need to deal with 10.25% state TAT, 3% county TAT, and the ubiquitous 4.712% state General Excise Tax.

    A few years before that, you may remember back in the early 2010’s that the TAT was hiked from 7.25% to 9.25%—but only on a temporary basis, our lawmakers told us. When the end of the temporary hikes arrived in 2013, lawmakers passed a bill making those TAT hikes permanent. “We needed the revenue,” they said.

    Thus, it is no stretch of the imagination for us to be thinking that some shadowy cabal of folks already is plotting to introduce bills to stop the bleeding from this year’s House Bill 2404. Maybe they are thinking of taking the bull by the horns and reversing the tax cuts. Maybe they are instead planning to squeeze taxpayers by hoisting the rates on another tax type, like the GET or the Conveyance Tax. Bills to significantly increase the Conveyance Tax, for example, have been introduced in each of the last several legislative sessions.

    As a result, we are likely to see all kinds of tax proposals in the next legislative session in 2025.  Maybe the tax proponents are thinking that it will be easier to pass tax hikes next year when no lawmaker will be up for election.  As a result, those of us who want the tax cuts to stick will have our work cut out for us. We can’t afford to let those bills sail through the legislative process unchallenged.  We’ll need facts and data, especially if the tax cuts start driving economic indicators upward.

    It takes some work even to keep the wins we have.

    Freedom is the key to future abundance

    By Keli‘i Akina

    Greetings from Las Vegas!

    You might be wondering what has brought me to Hawaii’s unofficial sister city. I’m excited to say that I’m here to celebrate liberty.

    Every year, some of the most influential thinkers and speakers on the topic of freedom gather at FreedomFest — an annual convention that explores all aspects of liberty, from economic to cultural. 

    Presenters this year include Harvard cognitive psychologist Steven Pinker, publisher Steve Forbes, presidential candidate Robert F. Kennedy, Jr. and rapper Ice-T.

    I’m playing a small role as a speaker on a panel about retirement states, but I’m also here to learn and make new friends.

    A major highlight this year is a longtime friend of mine: author Gale Pooley, a former BYU-Hawaii professor and member of the Grassroot Institute’s Board of Scholars.

    Pooley and his co-author Marian L. Tupy are the innovative minds behind the book “Superabundance: The Story of Population Growth, Innovation, and Human Flourishing on an Infinitely Bountiful Planet.” As the title suggests, it is deeply optimistic about the future. More than that, it is a scholarly contradiction of the myth that population growth must lead to scarcity.

    In “Superabundance,” Pooley and Tupy looked at the prices of goods, commodities and services over the past 200 years of population growth and found that the earth’s growing population has not depleted existing resources. Instead, resource abundance has increased faster than the population because people on average create more value than they consume. 

    This is largely due to human ingenuity that helps people overcome shortages, grow the economy and actually increase our standard of living. This is the “superabundance” of the title.

    However, superabundance requires more than just the ability to innovate. It also requires freedom. Without the freedoms to exchange ideas, trade goods, invest, make a profit and simply pursue your own goals, superabundance is stifled. 

    In short, people create value, but only if they are free to do so.

    Unfortunately, not everyone is prepared to embrace the promise of freedom and superabundance. But here at FreedomFest, Gale’s book is practically required reading. It won the festival’s Leonard E. Read Book Award, and is the subject of its own special session. It seems like everyone is talking about “Superabundance” and what it means for our planet.

    In The New York Times, business columnist Peter Coy wrote that “what makes ‘Superabundance’ more than a reiteration of cornucopian optimism is the tables and charts the authors have put together showing exactly how much better life has gotten because of technological progress and trade.”

    Psychologists Jordan Peterson, author of the best-seller “12 Rules for Life,” advised: “Read this book. It’s a valid antidote to demoralization, cynicism and hopelessness.”

    On X, journalist John Stossel highlighted Pooley and Tupy’s work with a video about why population doomsayers are wrong. Elon Musk shared Stossel’s video with an enthusiastic “I agree!”

    The message of “Superabundance” is important, especially when one considers how much the younger generation has been influenced by the pessimism of the scarcity myth. 

    Here in Las Vegas, there is a palpable sense of optimism and excitement about the future, and I think that Superabundance” is one of the reasons for that.

    Congratulations to Gale Pooley and Marian Tupy for their well-deserved award. We’re so proud that you are part of the Grassroot family.
    ________________

    Keli‘i Akina is president and CEO of the Grassroot Institute of Hawaii.

    The Importance of Conformity

    Recently, Governor Green, without much fanfare, signed into law a number of bills that had been proposed by the Department of Taxation. Many of them covered relatively arcane subjects such as whether the Department had the authority to serve administrative subpoenas outside the State of Hawaii.  (The bill said that they can.)  One of them, however, in the course of just four pages does a heck of a lot of work.  It incorporates into Hawaii’s income tax law and estate tax law all of the changes to their counterpart Federal tax laws, except for those laws that are specifically treated a different way.  We call this concept “conformity.”

    Why is conformity important?  Before the late 1970’s, Hawaii had its own income tax law that kinda sorta looked like federal income tax.  Resident individuals, namely most of us around at the time, had to contend with Form N-12, an income tax form that looked a little like a Form 1040 but had its own little quirks.

    In 1978, however, our legislature enacted laws saying that our income tax law was going to follow federal law, basically to make income tax easier to deal with.  (And they would be easier to audit, too, if for example the IRS audited someone’s return and made changes, in most cases the changes would be reflected in Hawaii law so our state auditors could simply follow the federal auditors’ work.)  Our legislature would decide every year which federal tax laws they would follow, and which ones they wouldn’t. Those differences would be written out in the law books.

    Much later, we massaged our estate tax laws to work the same way—every year the Department of Taxation introduces a bill to pick up all or some of the federal changes, and as a result our tax code for that tax also picks up the federal tax law except for certain changes that are written out in statute.

    For income tax, for example, adjusted gross income is quite similar to federal AGI, especially for taxpayers who have all if their income earning activity here in Hawaii. Deductions for individual taxpayers are similar as well. That’s why in the late 1990’s the Department introduced Form N-11 to replace the N-12.  Instead of calculating state taxable income from scratch, it started with federal AGI and made adjustments to it. The N-11 is the form that most resident individuals file today.

    For businesses, one of the most common differences is in the calculation of depreciation, which is already mind-numbing even without state differences.  Most states, including Hawaii, resisted the concept of “bonus depreciation,” which the Feds introduced in 2002 and which really never went away.  As a result, businesses with fixed assets normally need to calculate depreciation at least twice, once under federal rules and once under state rules.

    For estate tax, the changes are a bit more radical.  This is because the federal system has an integrated estate and gift tax, while Hawaii has no gift tax. In addition, the federal code has a threshold of $13.61 million, meaning estates of lesser value generally don’t have to worry about federal estate tax; Hawaii’s lawmakers couldn’t stomach a threshold that high, and instead locked us into the federal threshold that existed in 2017, namely $5.49 million.

    But in either case, it’s very helpful for taxpayers and tax practitioners to have a ready-made list of the differences between state and federal tax treatment.  It certainly beats having to do the taxes from scratch for both federal and state purposes.