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The Honolulu Advertiser
Posted on: Thursday, April 16, 2009

COMMENTARY
Tax hikes better plan than worker cutbacks

By Robert H. Lee, Randy Perreira, Roger Takabayashi, Tenari Ma'afala, Dayton M. Nakanelua and J.N. Musto

We live in the greatest state in the greatest country in the world. We can say that because for decades, we have had high employment and good-paying jobs with a large and productive workforce, quality healthcare for almost all our citizens, a clean and healthy environment to live and work in, and a well-funded educational system that serves all our children equally.

And for decades we've been able to count on visitors and the federal government to help pay for these services. We count on knowing our children are taught and cared for by qualified and generous staff; we expect that food bought at stores and in restaurants is inspected for safety; and take it for granted that hospitals and community health centers are there to care for us in times of illness. We also know it's important to be able to provide food and housing for our homeless and jobless, medical care for the uninsured, and the multitude of other services for those in need. These are hallmarks of an evolved society that cares for those who cannot care for themselves.

Today, we are facing our greatest challenge to date. With declining visitor numbers, rising unemployment and lower revenue forecasts, we have an unprecedented budget deficit. Our elected leaders continue to cut services and now talk about cutting government jobs.

But consider this: government remains the last stable employer in the Islands. Government cannot — no, must not — go the way of Aloha Airlines, ATA, Molokai Ranch and Circuit City, and dump more newly unemployed into the swelling ranks of the jobless. We must hold the line on unemployment. That is why we (the collection of organizations that represent public employees) feel strongly that cutting state and county workers, or their work-hours, is NOT the answer to our present fiscal crunch.

President Obama has made protecting and growing the middle class a cornerstone of his national economic recovery plan. We must echo his policies. Who is the middle class? It is public employees. It is the clerk in the health department who makes $35,000 a year and on that salary supports a working wife and two children in public school. It is the mental health specialist who makes $45,000 a year, and supports two aging parents for whom she cares at home. It is the education assistant, making a salary of less than $40,000, who is a single mother putting herself through higher education for better employment opportunities down the road. It is everyone around us.

We cannot fool ourselves into believing that cutting workers or their pay will solve our budget problems. It will not. The public-sector unions have and will continue to work with government leaders and employers to reduce waste, increase efficiencies and improve services. However, with no real signal of when the economy will revive, it is clear that cuts alone will not make up the losses.

The responsible and realistic thing to do is to increase revenue. How? There are many ways to do it and minimize the impact on the struggling middle and lower classes and small business owners. Options include raising taxes on cigarettes, alcohol, online sales or property conveyance; raising personal income tax on those making over $100,000 a year; or increasing the hotel room tax so visitors also pay the cost of maintaining basic services provided by our local government. We also must consider raising the general excise tax, with a refundable food and drug credit so the needy do not suffer unnecessarily.

We must be realistic in the year 2009. We want to have a government that continues to do everything for its citizens that ours does. It doesn't come free and it never will. But it's worth paying for, for the health, safety and well being of all Hawai'i's residents.

We are in this together, and we'll get out of it ... together.

The commentary was written for The Advertiser by the following public union leaders: Robert H. Lee, president, Hawai'i Fire Fighters Association; Randy Perreira, executive director, Hawai'i Government Employees Association; Roger Takabayashi, president, Hawai'i State Teachers Association; Tenari Ma'afala, president, State of Hawai'i Organization of Police Officers; Dayton M. Nakanelua, state director, United Public Workers; and J.N. Musto, executive director, University of Hawai'i Professional Assembly.