SLOWER ECONOMIC GROWTH SHOWS NEED TO END

EXCISE TAX ON MEDICAL SERVICES, GROCERIES AND RENT

This morning the U.S. Department of Commerce announced that the national economic growth rate has declined to just 0.2%--its slowest growth since 1993. The decline shows the pressing need for tax relief in Hawaii. To inoculate Hawaii from the Japan recession and a near recession in the U.S., Hawaii must immediately eliminate the excise tax on groceries, medical services, and rent. Democrats in Washington--while supporting a tax cut to stimulate economic growth--point out the best way to cut taxes is to help working people who need the relief the most, and will spend it fastest. As Democratic Senate Leader Tom Daschle said on "Meet the Press" recently:

"We [should give] the tax rebate to those people who are at the lower end of the economic scale. . . That's where we [can do] more good, that's what Democrats supported."

Rep. Charles K. Djou (R-Kaneohe) stated, “At the national level, Republicans and Democrats have sent taxpayers tax rebate checks to help ease the burden of a recession. At the state level, to avoid another economic downturn, the Hawaii Legislature must similarly pass tax relief next session to help our working families.”

House Republican Leader Rep. Galen Fox (R-Waikiki) added, “Even Democrats in Washington recognize the need for tax cuts that helps working families. We hope Hawaii Democrats wake up and join Hawaii Republicans to fight off another economic slump here by enacting legislation to eliminate the excise tax on groceries, medical services, and rent.”

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