Posted on: Friday, October 5, 2001
The September 11th attack
Hawai'i joins economic stimulus efforts
By Susan Roth
Advertiser Washington Bureau
WASHINGTON — Rep. Neil Abercrombie and Sen. Daniel Akaka, both Democrats, sought to give Hawai'i a boost by joining legislative efforts yesterday aimed at stimulating the nation's economy in the aftermath of last month's terrorist attacks.
Abercrombie joined with two Arizona Republicans in proposing to offer Americans a tax credit of up to $500 for taking a vacation.
Akaka teamed up with a bipartisan group of senators sponsoring a bill that would expand access to Small Business Administration loans and management counseling.
The Travel America Now Act, whose chief sponsors are Sen. Jon Kyl, R-Ariz., and Rep. John Shadegg, R-Ariz., is designed to boost the $582 billion tourism industry by allowing anyone to earn the tax credit by buying a bus, train, cruise ship or plane ticket by Dec. 31.
Tickets must be purchased by then, but people can travel at any time. The cost of rental cars and hotels also would qualify for the tax break. Travel is limited to the United States.
"This legislation is a timely response to the job losses and business downturn affecting millions of working families in every part of the country," Abercrombie said in a statement. "Travel and tourism is a mainstay of the economy not only for Hawai'i, but for the nation as a whole. Our bill is a focused stimulus measure that addresses the hardest-hit sector of the U.S. economy."
The measure also contains a provision to temporarily restore full tax deductions for business entertainment expenses, including meals — something Abercrombie has been pushing for years. Current tax rules limit those deductions.
Congress and the Bush administration are negotiating a legislative package that would include a combination of tax cuts and spending to stimulate the nation's sagging economy. The business meal deduction has been discussed as part of that package.
The American Small Business Emergency Relief Act, introduced by Sens. John Kerry, D-Mass., and Christopher Bond, R-Mo., along with Akaka, would provide businesses crucial access to credit by expanding the eligibility requirements for disaster loan programs.
Businesses throughout the tourism industry that were indirectly affected by the attacks could apply for loans at reduced rates.
"While I am confident that Hawai'i's visitor industry can withstand this downturn, action is necessary to help preserve existing jobs and support the economy during this difficult time," Akaka said in a statement. "It is imperative that Congress and the president include small-business relief in any economic stimulus and post-disaster recovery legislation we consider."
