Posted on: Monday, October 1, 2001

The September 11th attack
Tourism tax break proposed in House

By Walter Wright
Advertiser Staff Writer

U.S. Rep. Neil Abercrombie yesterday proposed a tourism tax break to get Americans traveling again.

The idea is to allow an income tax deduction, for a period of time, even for purely recreational travel.

Abercrombie said the notion is one of several he expects the House Ways and Means Committee to act on within two weeks to stimulate the economy in the wake of terrorist attacks Sept. 11.

Before the attacks on the World Trade Center and the Pentagon, the Hawai'i congressional delegation was already pressing for bigger tax deductions for business travel.

But Abercrombie, in town for a gathering of the veterans of the 100th Infantry Battalion, 442nd Regimental Combat Team, said the impact on travel caused by the attacks has made many in Congress realize how important travel is to the economy as a whole.

Tourism is among the top three industries in 40 of the 50 states, he said.

Abercrombie is on a special tourism caucus among House Democrats.

He said analysts who have evaluated the tax break for its real impact on government revenues indicated that a tourism tax credit would more than pay for itself by stimulating overall economic activity, which is subject to taxation.