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The Honolulu Advertiser
Posted on: Friday, April 23, 2004

EDITORIAL
State tax check-off has many downsides

Now who would be against getting more money to programs that deal with domestic violence, child abuse and similar human services?

No one, obviously.

Thus, a bill destined for legislative approval that would create a $5 tax refund "check-off" program for such services is bound to be popular.

Similar to the check-off boxes for the Hawai'i Election Campaign Fund and public-school repairs, this new option would allow taxpayers to give $5 of their refund (if one is coming) toward these key social services.

As appealing as this is, there are a number of problems that should be considered:

• Social services are not the only worthy program that could benefit from a check-off system. If lawmakers are willing to provide this alternative source of funding for these programs, how can they say no to others?

The logical (well, maybe not entirely logical) extension of all this would be an income tax system in which your entire payment could be dedicated to the service or services you wish.

• This effectively would be another special fund, and we have seen what can happen when programs and services are shifted from general fund support to special funds. Taxpayers might check off their $5 for social services only to see the money diverted to another purpose.

• There is always the possibility that once a substantial sum has been collected through the check-off system, legislators would find reason to reduce general fund support for the program by a like amount.

If this check-off system is to go through, it should at a minimum come with an iron-clad guarantee that regular support for the affected programs would not be diminished.