One Integrated Approach to Tax Fairness?
By Tom Yamachika – One of the bills percolating in the legislative miasma this session is House Bill 1586, which is a multi-faceted bill that seeks to change some of the characteristics of our tax system. I recently had a chance to speak with the bill’s authors, so this week we are taking a closer look at that bill.
On the income tax side, the bill doubles the amount of the personal exemption for income tax, from $1,144 to $2,288. Next, it implements new income tax brackets and rates over a 3-year period. A married couple would start paying taxes at an income level of $17,500, instead of $4,800, once fully phased in. If the couple made the Hawaii median family income of $83,283, the applicable tax rate would be 6.88% as opposed to 8.25% now. In contrast, the highest rate would rise from 8.25% now to 9%. In addition, the bill would place a cap on itemized tax deductions other than charitable contributions, but the cap would be $200,000 for a family, as opposed to the $50,000 that it was in 2015.
We have written before about our numerous and low-hitting tax brackets, which have survived decades with little or no change. The effect of keeping the brackets the same while incomes and the cost of living rise is called “bracket creep,” and has the effect of taxing the poor deeper into poverty.
In addition, the Foundation has, on many occasions, testified that we can achieve real savings in administrative costs by not dealing with the very poor in our tax system. Tax returns are among the most complicated documents in state government, and if we can get out of processing a hundred thousand of them, we would be looking at serious money savings that could help ease the burden on taxpayers.
To help pay for the lower and middle class relief, the bill would have the State phase down, and eventually quit, payments of transient accommodations tax (TAT) revenue to the counties. The counties now share $105 million of TAT revenue, and have been jockeying for a percentage of collections that would give them about $50 million more. Of course, killing the allocation would be one way of halting the constant squabbling between the state and the counties over how much of the TAT pie will be served to them.
If the TAT allocation goes away, most counties will have little choice but to raise real property taxes. The bill’s authors fully realize that. In a way, that may give the counties what they have been arguing for. The counties have argued they want a stable, predictable funding source. Real property is about as stable as it gets. It doesn’t disappear during an economic downturn as business activity might, and it doesn’t require much policing; you can hide income and you can hide some physical assets, but it’s impossible to hide real property.
Some, notably including the teachers’ union, have observed that Hawaii’s property tax rates are among the lowest in the nation, and have argued that those low rates fuel speculative buying, which somehow leads to a higher cost of living. We were not particularly impressed by that argument, and have taken issue with it before, but note that under this bill, we can expect this supposed problem to disappear because property tax would be ratcheted upward.
In any event, it’s apparent that some thought has gone into this bill. Brilliance or something less? We’ll leave it to you to decide. It is at least an attempt to fix various problems in the tax system with more of an integrated approach as opposed to a knee-jerk reaction. The bill is moving forward, and we look forward to the additional discussion that is expected to arise in the coming weeks.
Fire In the Hole!
Since the dawn of time, mankind has pondered the great mysteries of the human body. Foremost in the minds of many people is the question of why hot peppers make your bum burn.
The first humans to eat jalapeños and other hot peppers must have been surprised when their mouths lit with fire for the first time. But imagine what they felt about 24 hours later.
It’s strange for the anus to have a sense of taste. We don’t really want it to. And, indeed, the anus can’t taste sweet or sour or bitter or salt. But it certainly knows spicy hot when it sees it.
Why would the body have a hot spicy receptor in the anus? Why would millions of years of evolution and perfection of the human form create this?
As an anthropologist, I needed to perform some participant observation to better understand this enigma. So I went to a Mexican restaurant and had a spicy meal that set my mouth aflame and tears flowing as I gasped for breath. By the next morning, like clockwork, my meal had travelled relatively unnoticed through the small and large intestines and was now ready for removal. Pen in hand, I recorded the degree of spiciness. It was certainly an 8 on a scale of 10.
It was at this point that I had the most amazing epiphany. Faced with the question of how to best stop the burning sensation, it all became clear.
Let me backup for a moment. Several years earlier I had been traveling and stopped for a night in a hotel in Bangkok. In the bathroom was a hose for cleaning oneself after using the toilet. For a lifetime toilet paper user, I was taken by surprise when discovering this aqueous solution to butt cleaning. But, truth be told, I liked it.
And when you think about it, if you were walking barefoot in your backyard and stepped in dog shit, would you rather wipe it off with dry paper, or wash it off with water?
Ever since that time I have been using water for personal hygiene reasons. And when you discover that toilet paper can be contaminated with dioxin, chlorine, formaldehyde, and Bisphenol A (BPA), all of which are toxic, water makes even more sense.
Then there are the environmental considerations, with over 7 billion roles of toilet paper being used in the US annually. That takes a lot of trees. Globally, 27,000 trees are wiped out daily to make toilet paper. And, of course, making toilet paper uses more water than you would use if you washed with water in the first place.
Returning to my experiment, let me explain that my bathroom is equipped with a hose for washing, and the burning sensation was soon washed away. I then reflected on how less successful toilet paper would have been in removing the spicy chemicals from the area.
This was when I realized the purpose of the anus sensing hot spice. The chemicals in hot peppers can burn sensitive skin if left in contact for too long. This is why hot peppers can help with intestinal parasites. If you burn from the peppers, imagine how a worm feels. Having receptors in the anus for these potentially harmful chemicals gives you feedback, telling you that you need to clean the area.
How to clean oneself is really a cultural issue. It is not only related to the materials you use, but also to the method you use to poop. Do you sit on a toilet seat with your legs relatively close together (as when your pants are around your ankles)? Or do you squat over a hole, as with an Asian-style squat toilet, which separates your cheeks better? Then there is the issue of how hairy you are, but we won’t go there.
Actually, there are probably more people who use water to clean themselves after pooping than who use toilet paper. The French have the bidet, but most people use a bucket of water. On the other hand, some people use rocks and leaves. For many, instead of getting the coupons in the Sunday newspaper to buy toilet paper, they just use the newspaper.
As an aside, I must mention that while doing some fieldwork in Fiji, I discovered that the Fiji Times was commonly used for wrapping food, to clean one’s bum, and to absorb menstrual blood. That, and the comics. What a value.
The human being was designed biologically to need some form of anal cleansing. Clearly, the method one uses is culturally and environmentally determined. To ensure that the poop is removed effectively, especially if it contains irritating spicy chemicals, Mother Nature, in her wisdom, has endowed the anus with the ability to know what’s hot.
So remember. The next time you find yourself with a burning bum, the best way to put out the fire is with water. You’ll be squeaky clean, and the trees will thank you.
March is Red Cross Month, A Time to Recognize Everyday Heroes
All across the nation, the American Red Cross is honoring its everyday heroes during Red Cross Month.
For over 70 years, March has been designated as Red Cross Month to recognize how the American Red Cross helps people across the country and around the world.
“Hawaii has no shortage of everyday heroes,” said Coralie Chun Matayoshi, Hawaii Red Cross CEO. “They are selfless Red Cross volunteers and supporters who embody the spirit of humanitarianism and bring hope to those in need. During Red Cross Month, we honor and applaud them for their invaluable contribution.”
The Red Cross depends on local heroes to fulfill its mission. They are on call 24 hours a day, 365 days a year and respond to home fires and other disasters in Hawaii every 4 days, providing shelter, food, emotional support and other necessities to those affected. The Hawaii Red Cross also educates local youth, organizations and businesses on how to prepare before disasters strike,provides 24/7 support to members of the military, veterans and their families, and trains thousands of people in first aid and other lifesaving skills.
In fiscal year 2016, the Hawaii Red Cross responded to 124 local emergencies, installed 1,062 smoke alarms in 325 homes, taught 2,603 keiki disaster preparedness, assisted 1,520 military families with emergency communications and trained 12,667 people in lifesaving skills.
This year also marks the Centennial Anniversary of the Red Cross in Hawaii. Please join the cause of humanity by getting involved – take a Red Cross class to learn lifesaving skills, get prepared for disasters, volunteer, or make a donation. For 100 years, the Red Cross has played a vital role in helping the people of Hawaii recover from every major disaster, from hurricanes, earthquakes, and tsunamis to volcanic eruptions and air crashes. Through the generosity and support of Hawaii’s people, the Hawaii Red Cross will be here for the next 100 years to provide comfort and hope to those in need.
In honor of its Centennial and Red Cross Month, the Hawaii Red Cross is asking the public to raise much needed funds not only for disaster relief, but for a new Emergency Response Vehicle (ERV). Red Cross Emergency Response Vehicles are instrumental in almost every phase of disaster response—from prepositioning people, cots and blankets before a hurricane strikes, to distributing food and water following a brushfire, to providing a safe place for a Red Cross worker to offer physical and emotional support to a family following a home fire. To help the Hawaii Red Cross continue to fulfil their humanitarian mission for next 100 years, go to crowdrise.com/redcrosshawaii100
To send a contribution, mail your check to American Red Cross, 4155 Diamond Head Road, Honolulu, Hawaii 96816 or make a secure online donation at redcross.org/hawaii or call (808) 739-8109.
Planning to Buy a Used 1911? Read this first…
Editor’s Note: The venerable 1911 is one of my favorites. Like a lot of people I’ve purchased them online, usually with good results. Sometimes not. Recently I purchased a classic Colt that had issues. I realized I was in over my head, but of course, it was a bit late in the game. Without getting into the sordid details, with a little help from my friends, eventually things got sorted out. However, in the interim, it was a hassle. I realized that it would have been helpful to know more about potential issues that one might encounter before I purchased it. Hindsight is always 20-20 but in an effort to turn my experience into a “learning moment” I had a conversation with Mike Watkins, a Sr. Tech Support Gun Tech over at Brownells. Mike is an accomplished 1911 builder and a member of the American Pistol Smith Guild. I think you’ll find his comments enlightening. In the meantime, stay tuned. I plan to do a write up on how we resurrected that old Colt.
Q: What are the common issues/problems that one might encounter in a used 1911?
A: It might be damaged from abuse or modified by someone who didn’t have good Gunsmithing skills. It would be correct to ask the seller for permission to exam it. In the Firearms industry 99% percent honestly represent the condition of a used gun, just watch out for the other 1%. It is also possible they inherited the firearm and they don’t really know anything about it.
Q: Is a stock 1911 inherently more dependable than one that is accurized?
A: Not necessarily, there can be functioning issues with a new 1911, that’s why there are Pistolsmith’s. One that is properly Accurized for competition shooting has to function on every shot fired, competition today is so demanding that a 1911 that does not function correctly has no hope of the shooter winning the match he is shooting in. The same holds true for a duty weapon it has to work every time, they both need to be tested and any problems corrected and properly maintained by the owner.
Q: I’ve had friends complain that their high end guns don’t like certain brands of ammo. Is it common that a tricked out 1911 (vs. stock) is going to be more finicky about the kinds of ammo that it will consume?
A: That’s possible, but the same can be true for stock 1911 production guns. I built my 1911’s to feed SWC and hardball ammo and they have to be properly ramped and throated to do that. Most production guns are set up to feed 230 grain FMJ ammo and won’t always feed SWC ammo, That’s where a good Pistolsmith comes in.
Q: Is it even a good idea for someone who doesn’t reload to purchase a competition-style 1911?
A: It depends on caliber I think and what the gun was built for. If it was a light load SWC Bullseye 1911, it will need a heavier 16.5 lb. recoil spring to shoot full factory ammo. A IPSC gun in 9mm,.40 S&W, and .45 ACP caliber should work with factory ammo. If it is a IPSC open class 1911 in .38 Super, they are tuned for one specific load range generally and won’t function with lighter loaded factory ammo. Then you need to be a reloader.
Q: Is it inviting trouble to buy a used (accurized) 1911 online without being able to inspect it?
A: Could be, you have to trust the seller and how the 1911 is represented. A 100% return policy is always good, no matter what you are buying online. If they don’t offer a return policy I would stay away from that one.
Q: What’s the #1 cause of failure to eject or stove piping? Ammo? Bad extractor? Bad ejector? Bad magazine?
A: Limp wristing the pistol when firing, barring a mechanical problem. Light loaded ammo, or poor quality reloads in a 1911 with a full power recoil spring. Broken extractor hook or one with not enough tension on it to hold on to the rim of the case. Damaged ejector. Never saw a magazine cause ejection problems.
Q: What about failure to feed?
A: The magazine is the first suspect, then extractor tension and the shape of the extractor hook. If it still doesn’t feed the it will need a throat and ramp job done by a competent Pistolsmith.
Research Reveals Why the Chicken Crossed the Road
Despite what most people think, it wasn’t to get to the other side. That’s an urban legend.
For those living a more rural lifestyle, as I do, who have the pleasure of having chickens, this proverbial question suddenly makes sense. I came to that realization the other day experimenting with a chicken and my truck.
First, let me explain that I live on Hawaii Island and my 30-40 chickens are free-range in the truest sense of the term. They perch and lay wherever they want, and have acres of lawn to scratch for insects. They also enjoy eating coconuts opened for them and overripe bananas that dropped unnoticed by us humans. I say 30-40 because hens occasionally come out of the bushes clucking to newly hatched chicks.
We watch their behavior in this natural environment and have discovered that chickens are really a great deal like people. If you live with chickens you know what I mean.
You also know what happens when you drive your truck towards a chicken. How the chicken responds is truly baffling, because it seems so stupid that you would never have thought a bird could be so dumb and self-destructive. That’s right. They run across the front of your truck at the last second, making a near miss with your tires. At least, it’s usually a near miss. Other times it’s soup.
It makes you scratch your head and ask, “Why DID the chicken cross the road?” And since chickens are very much like people, what could this teach us about ourselves?
I decided to do an experiment and see, from a scientific point of view, what’s compelling the chicken to risk its life and make a last minute mad dash in front of a moving truck.
To do the experiment I used a 2006 Toyota Tacoma truck, white, with a slight dent in the rear gate but otherwise in good shape. Low mileage. Asking $5,000 obo.
Anyway, I waited until I saw chickens hanging around the side of the grass driveway. I got into the truck, turned it on, and proceeded to drive at about 10 miles per hour towards the chickens. My heart pounded as I contemplated the potential fate of my avian friends, but felt this experiment could reveal some deep truth so it was worth the risk.
There were 4 barred rock chickens scratching and pecking through the grass on the left margin of the driveway. Across from them, on the other side of the driveway, was the same grass, with no special food, animals, or other enticements. In fact, from their faces you couldn’t see the least bit of interest in the other side of the road. That is, until I came driving towards them.
As I came within a few feet of the birds, three ran away from the road, further towards the left. The other chicken decided to cross the road.
I must disclose that I did not wait to see if the event would prove fatal for the bird since I slammed on my brakes, ending the experiment. But it was a success in showing one thing. There was no reason any sensible bird would want to suddenly visit the other side of the road, an impulse which happens to coincide with the appearance of a moving truck. No, this experience showed that there was no real motive to get to the other side.
However, when you consider what the chicken sees, the solution may become clear. Imagine being ground level at the edge of a road with a truck coming down the road towards you. To a chicken, the truck is enormous. And for the time it takes to pass the chicken, the other side of the road is effectively cut off from view and accessibility. In other words, a truck barrier suddenly separates the sides of the road, denying the chicken access.
The chicken sees the truck as taking away its ability to go to the other side. It doesn’t want to be limited and deprived of the other side of the road, and sees this challenge to its access as a reason to quickly run to the other side. “Do it before you can’t”, would be that chicken’s motto.
Sales people know that people are like chickens, and they have a technique where they make you feel the thing you want to buy may not be for sale, or may already have been sold, or that someone already said they wanted it but didn’t put a deposit on it yet. Boy, does that make people jump at the deal, before it’s too late.
The chicken didn’t have the foresight to realize that the truck was going to soon pass, and that the barrier from the other side of the road would not be around for more than a few seconds. All it could think about at those last moments before the truck passed was how important it was to be able to get to the other side, if, for some reason, the other side was suddenly better than the side you are on.
Which means that the chicken crossed the road because the grass may be greener on the other side, and you don’t want to lose the opportunity to get there in case you have the sudden impulse to do so.
Weeks later I repeated the experiment with the same chicken, who happened to be by the road at the right time when I was in my truck. I checked the other side of the road, and again there was nothing a chicken would want over there to make her dash across. Did she learn from her past experience that the truck would only block the road for a few moments? Will she realize that there is nothing on the other side of the road that justifies taking the risk of dashing in front of a truck at the last moment? Is she a wise chicken who will stand her ground, realizing that she did not have to respond to the truck?
I came within a foot of the bird as it looked at the truck coming, but this time it was different. She ran the other way, away from the road. Clearly, she was chicken. I concluded that a chicken chicken doesn’t cross the road.
The moral of the story, if applied to human affairs, is to not let the fear of losing opportunities lead you to making rash decisions, or you may end up as soup.