While the commission will work collaboratively in all areas, by the reckoning of many, the most pressing issue at hand is protecting the quality of life. More specifically, working families are being priced out of the Islands. Before the valuable collaboration begins, this new commission must build on the work of other experts and pick the "low-hanging fruit" to help the working families of Hawai'i now.

There are two initiatives that could immediately help us all and thereby boost the sustainability of the current economic prosperity in Hawai'i. The good news is that the Legislature could implement meaningful legislation by holding a special session this summer.

The first initiative would be to pass Senate Bill 815, which would provide temporary tax relief to employers by lowering the maximum taxable wage base from $32,300 to $7,000 over the next three years.

In 2005, Hawai'i's employers will be taxed at the highest maximum taxable wage base in the nation at $32,300. Taxing employers at the federal minimum level of $7,000 over the next three years would greatly stimulate small-business growth. This would result in immediate economic benefit by giving Hawai'i's employers more money to create new jobs, expand benefits and provide pay increases to their employees. Passage of this legislation would put an estimated $200 million back into the economy over the next three years at no cost to the taxpayers.

Implementing an immediate tax cut would be the second initiative. We have a booming economy in Hawai'i, yet some politicians continue to raise taxes.

The Council on Revenues has revised its projections for economic growth, predicting that Hawai'i's economy will grow an additional $171 million in fiscal year 2006, and an additional $194 million in fiscal year 2007. Additionally, over $200 million is expected to be on the books immediately at the close of fiscal year 2005. That means, according to the revised projections, there will be an additional $565 million in our economy by the end of fiscal year 2007.

As a result of the surplus, we should be committed to tax cuts and give excess revenues back to the working men and women in Hawai'i. There are numerous tax cuts that the Legislature should consider, which would impact working families and individuals. Progressive tax cuts such as eliminating the general excise tax on at-home food, increasing the standard deductions to match federal levels and/or increasing the personal exemptions to the federal levels would significantly assist Hawai'i's taxpayers.

Cutting taxes is a fiscally prudent decision as history has proven reducing taxes spawns economic activity and growth. Tax cuts do result in increased revenue to the government.

Implementing unemployment insurance payment reform and cutting the regressive excise tax on food would put an estimated $700 million back into the Hawai'i economy over the next two years.

Now is the time for bold leadership to maintain Hawai'i's economy. Hopefully the Economic Momentum Commission will be just that — bold.

Sen. Fred Hemmings, R-25th (Kailua, Waimanalo, Hawai'i Kai), is a member of the Economic Momentum Commission, recently appointed by Gov. Linda Lingle.