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The Honolulu Advertiser
Updated at 6:25 p.m., Tuesday, May 5, 2009

Lingle says Democrats tax increase aimed at unions

Advertiser Staff

Gov. Linda Lingle today accused majority Democrats of giving public-sector labor unions a "false sense of hope" that the tax increases they have approved would help offset wage and benefit cuts in collective bargaining.

The Republican governor, who plans to veto the tax increases at 3:30 p.m. Thursday at a public ceremony in the state Capitol rotunda, wants to achieve $278 million in labor savings through the negotiations. Lawmakers have refused to incorporate the figure in their two-year budget, arguing it is premature with the talks in progress.

But Lingle said that lawmakers have inserted themselves into the negotiations by passing the tax increases.

With labor costs 70 percent of the state budget, the governor said she has to realize labor savings to help close the deficit.

State House Speaker Calvin Say, D-20th (St. Louis Heights, Palolo Valley, Wilhelmina Rise), responded that the tax increases were reluctantly approved to help balance the budget, not to help labor unions in negotiations.

Lingle is expected to discuss the tax increases at 4:15 p.m. tomorrow in a Web address. The governor plans to veto bills on Thursday that would increase state income taxes on the wealthy, the hotel-room tax, and the conveyance tax on the sale of luxury homes.

State House and Senate leaders have said they believe they have the two-thirds' votes necessary to override the governor's vetoes before the session adjourns on Friday.