January 2007 | Small Business News
Small Business Views
By Sam Slom, President and Executive Director of Small Business Hawaii
Another year begins and small business approaches the Year of the Boar with cautious optimism.
However, January 1 ushers in the largest tax increase in Hawaii’s history, the .5% GET surcharge (a 121/2% increase) that applies to all goods and services purchased on Oahu. A lot of big ticket purchases and services were started and paid in December in order to beat the tax hike. The estimated $150 million a year in new tax revenue will go to partially fund the biggest planned construction boondoggle; the City’s 22-mile, $6 billion mass transit train to nowhere. More tax and fee hikes will come if this train is permitted. Residents have no vote on it.
Shocker: Medical coverage premiums will be going up and up this year in Hawaii.
Watching the kangaroo City Council hearings on the rail in December was a lesson in raw power. Mayor Mufi Hannemann, the train’s chief cheerleader — (on behalf of his union clients) — rallied every union, union retirees, big business, banks, big landholders and various special interests to move this train. Most disconcerting, was once again watching the Chamber of Commerce of Hawaii leadership sell business — especially small business — down the river by enthusiastically endorsing this $6 billion train and increased taxes without the benefit of ever surveying its members on the issue.
OHA will again push for nationhood and sovereignty for Native Hawaiians, and a feeble attempt to once again try to resuscitate the Akaka Bill. Radicals still want secession.
Will Isle residents see the SuperFerry in action by midyear? Hopefully, but not if environmental whackos get their way.
The air battles between Aloha, Hawaiian, Island Air and GO! continue as Island Air announced layoffs and schedule reductions allegedly because of GO!’s competition. Anticipate more lawsuits and PR skirmishes in the months ahead. Meanwhile, Isle consumers benefit from $19 and $39 interisland fares. GO! says it is in for the duration.
Having the lowest unemployment rate in the U.S. (2.1%) is not all great; small businesses scrambling hardest to find employees. Anyone with a pulse may apply.
January 1 your Hawaii gasoline prices will rise at least 10¢ per gallon as the temporary Ethanol GET exemption expires.
SBH dues up slightly to $200 March 1 after 10 years. Renew early and save $$$.
The sudden closure by Del Monte Pineapple in November, after a previous notice of two years, was business at its worst. The employees deserve better. The Company went further and made sure it plowed up and let rot the current crop in the field. Likewise, Ashley Furniture closed its doors suddenly cheating many buyers out of their merchandise and throwing employees into a crisis. Those of us who advocate for business and against more government regulation and intervention, decry these selfish acts because they hurt all responsible business. Hawaii’s Minimum Wage rises from $6.75 to $7.25 an hour January 1. Expect Hawaii Democrats to add additional costly increases and a quick push by the new Congress to raise the federal rate from its current $5.15 and hour to $7 or more.
Kahala Mall Consolidated Theatre 8-plex reopened 5 screens December 15 after being flooded in March of 2006; 3 more soon.
The SBH 31st annual SBH Business & Investment Conference is Wednesday, January 10 at the Ala Moana Hotel and you should be there. See the conference program agenda on page 4. You won’t want to miss luncheon keynote speaker David Tyreman. Governor was invited but is unable to attend.
Many in the business community, were stunned by Governor Lingle’s December 4 Inauguration Speech where she singled out real property development and investment as culprits of Hawaii’s social problems and called for an unspecified reorganization of Hawaii’s economy. Democrats smiled.
The 24th State Legislature convenes Wed. January 17. Hold onto your wallet!
Star Market continues its retreat from the local grocery market announcing the closure of its Kaneohe store in February and Kahala in March. Tower Records is gone; Walgreens Drugs makes its first foray into Hawaii’s market with an initial outlet on Keeaumoku Street at the former Tower site.
Peterson Sign Company riding the wave of forced new No Smoking signs everywhere.
SBH Sunrise Thursday, January 25 features University of Hawaii president, David McClain. He will discuss UH’s future. Reservation form on page 8.
The folks in Ewa just figured out they are being screwed by the tax train; hello! It’s all about money and development, not traffic.
Don’t forget to regularly check our website at www.smallbusinesshawaii.com.
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