Governor backs disabled tax

By Lynda Arakawa
Advertiser Capitol Bureau

Gov. Ben Cayetano yesterday praised an idea his wife is promoting that would create a $10 monthly tax to pay for a long-term care program for disabled residents.

Vicky Cayetano's proposal still has details that need to be worked out. Advertiser library photo • Sept. 8, 1999

"It's a concept that I'm very familiar with," the governor said through his press secretary, Kim Murakawa. "A little more work needs to be done to see what the administrative cost will be. The group put together by the first lady to tackle this issue did a fantastic job, and really addressed this difficult issue of long-term care. This is the first viable proposal that we've had to deal with this problem on a universal level."

Cayetano said while some legislators already have been working with the first lady on the proposal, "the question is always timing."

"He's confident, if not this year, then something similar to this will be put in place in the years ahead," Murakawa said.

Vicky Cayetano said she wants the contributions to come from a broad segment of the population, including retirees and homemakers, but exactly who would be required to pay or how it would be collected still need to be worked out. She said a voluntary contribution was considered, but it was determined the number of participants would be too small.

Mrs. Cayetano also noted that Hawai'i is among the top three states with populations aging most rapidly, with 212,000 residents 60 years and older as of last year.

Some lawmakers expressed concern about imposing a fee on taxpayers when the economy is already in a slump, while emphasizing that long-term care is a critical issue that needs to be addressed.

"I know the House is pretty reluctant in setting new taxes or fees because it might have ramifications on businesses (and consumers), especially in this hard time," said House Vice-Speaker Sylvia Luke, D-26th (Punchbowl, Pauoa). "I know some people are pretty open to dedicated taxes for education. I'm not sure if they would be open to taxes dedicated to long-term care."

But she added: "It is a legitimate concern, and Hawai'i's population is aging, and at some point we need to deal with it."

Senate President Robert Bunda, D-22nd (Wahiawa, Sunset Beach, Waialua), who has met with Mrs. Cayetano about the long-term care proposal, called it a "good beginning" and affordable.

"I would say that if 75 percent of the people feel that this is important in their life, then I think the Legislature will respond, and respond with passing something," Bunda said. "If you know that money is going to go directly to you should something happen to you, I think it will probably be more palatable for people to handle."

But House Minority Leader Galen Fox, R-21st (Waikiki, Ala Wai), said the proposed tax would hurt the poor, and that a meaningful state program could not work without help from the federal government.

"I applaud people who give (long-term care issues) attention, (but) I just don't think that this is the right way," he said.

You can reach Lynda Arakawa at larakawa@honoluluadvertiser.com or 525-8070.