



Aloha Everyone,
Today, on my first day after formally leaving Congress, I filed my nomination papers for Governor.
In my 19 years in the U.S. Congress, I put my entire focus on representing the people of Hawaii. I worked hard to get along with my colleagues, no matter their party affiliation or viewpoint, because I knew these relationships would help my constituents at home.
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Now, I am focusing my four decades of experience in public service into becoming the people's Governor. I am more energized, more determined and more committed than ever.
The single biggest issue of our campaign is restoring people's trust in government. In my conversations with people across the state, it is clear that we are losing confidence in our ability to tackle the long-term economic, social, and environmental challenges that face our islands. We're going to turn this around.
Our campaign is going to listen to people and their concerns, respect everyone's opinions, including those with different views, and bring in new voices and talent to change the status quo.
Please join me this Saturday, March 6, at 11 a.m., for the grand opening of our campaign headquarters at Ward Warehouse. The opening was originally planned for this past Saturday, but was postponed due to the tsunami warning. Please RSVP by emailing (JavaScript must be enabled to view this email address) or calling 589-2237. [learn more]. I hope to meet you soon.
Imua Hawaii,
NEIL ABERCROMBIE
Abercrombie’s departure
By The Hill Editors
Rep. Neil Abercrombie (D-Hawaii), who is running for governor, is serving his last week in the House.
Abercrombie is a rare breed in the lower chamber. He is respected and admired by both Democrats and Republicans. And he was never seduced by the Senate; he was always a House guy, through and through.
But unlike many other House members, Abercrombie did not take cheap partisan shots.
In an interview with The Hill on Tuesday, the Hawaiian choked up when discussing his looming departure. “I have such deep regard and affection for the House,” he said, adding that he is getting “waves of emotion” this week.
He was first elected in 1986 in a special election, but the triumph was bittersweet. On that same day, he lost the Democratic primary, so he only served a few months before returning to Hawaii.
Abercrombie noted with pride that he was the last person whom Speaker Tip O’Neill (D-Mass.) swore in to office.
“Tip told me, ‘Whether you’re here three months or 30 years, everyone should remember the privilege of serving in the House.’ ”
In 1990, Abercrombie returned to the House, and this time he was there to stay. The Buffalo, N.Y., native was subsequently appointed to the Armed Services Committee, and after Democrats took control of the House, he chaired the Air and Land Forces subcommittee.
The 71-year-old legislator, an avid weightlifter, is not shy about expressing his views. And he has shown no qualms about bucking his party, sometimes loudly.
He lambasted his leaders for moving an ethics bill he strongly opposed and ripped Democrats on their energy policy in 2008.
Abercrombie is going out on a high note. The House on Tuesday was expected to pass the Native Hawaiian Government Reorganization Act, which would extend the federal policy of recognition to Native Hawaiians and provide parity for Hawaii with policies toward Native Alaskans and American Indians. Abercrombie and the Hawaii delegation have been working on the bill for more than a decade.
Needing to campaign back home, Abercrombie will resign from the lower chamber on Feb. 28.
While he was certainly a productive member, Abercrombie’s time in the House will not be remembered for his legislative track record.
Members, aides, lobbyists and reporters will recall his storytelling skills, his rambunctious style and his respect for his colleagues.
He will miss the House. And the House will miss him.


TAXES AND THE PUBLIC TRUST
Crafting tax policies
February 1, 2010
By Neil Abercrombie
Last year, as Congress discussed health care reform, a group of protesters emerged saying they stood for limited government and against taxes. Their opinions on health care are often based on misinformation spread by powerful private interests. I strongly disagree with their methods, which are meant to intimidate people and stifle dialogue. They believe government is the enemy; I believe our government is our responsibility as well as our opportunity.
But in some ways, I understand where they are coming from.
All people need to feel confident that their government is working and their tax dollars are well spent. It’s not a partisan idea. When my friend and colleague, U.S. Representative Ron Paul, introduced a bill to audit the Federal Reserve System, I joined a bipartisan group of eleven original co-sponsors of the bill.
But here at the state level, I’m sorry to say that public confidence has steadily eroded. People are seeing Hawai‘i’s government as an impediment in their lives rather than a partner. The stories of frustration I hear from Kaua‘i residents and across the state have little to do with public employees who are working hard with decreasing support, and everything to do with a lack of leadership. Taxpayers need to know how tax dollars are spent and that state government is competent and cares. This starts with strong leadership in the Governor’s Office.
For example, a strong leader is needed to make smart long-term decisions when times are good. Odd as it sounds today, at this time in 2006, the state had a budget surplus of $574 million. In 2007 the surplus was $732 million. However, instead of prudently investing to make our economy more resilient to the ups and downs of the global economy, the state was too focused on short-term spending measures and tax refunds. When the global economic meltdown occurred at the end of 2008, we could have been more prepared. Gov. Lingle is now proposing that we establish a fiscal stabilization fund that is funded during good times to help ease the bad. It’s a good idea that is better late than never.
Besides being wisely spent, taxes must also be fair. The general excise tax is a broad and easy-to-administer tax, but it is regressive — the less you earn, the higher the percentage of your income goes to taxes. In addition, Hawai‘i continues to be among the worst in the country for taxing the incomes of families living in poverty. Our current tax policy serves as a barrier to people trying to work their way towards family self-sufficiency. We can remedy this with a state Earned Income Tax Credit. This innovative policy will correct these unfair disincentives in the tax code, get more people to work in the economy, and improve the quality of life for all in the process.
I’ve indicated that all people deserve to feel confident in their government. A few months ago, a woman protesting the health care bill confronted me. When I asked her some questions, she broke down. It turned out that she was just frustrated with government because it had failed her when she rightfully needed assistance. We ended up having a heartfelt conversation, and I tried to point her to some places where she could get help.
We all pay taxes so we can have a government that works. That’s not a Democratic or a Republican idea. It is the very basis of democracy. We all pay our share for the benefit of all. When that premise is questioned, we rightly question those entrusted with public office. The duty of the next governor is to restore public confidence that our tax dollars and the public good are once more joined together.
GROWTH THROUGH INVESTMENT
Crafting tax policies
February 1, 2010
By James "Duke" Aiona Jr.
During these challenging economic times, it is critical for our state to encourage reinvestment into our local economy and provide a fair tax system that does not burden our citizens, families and small businesses with tax increases.
Economic hardship has led many families and businesses to tighten their belts to save money. Our Administration has also had to find new ways to cut spending while providing essential services for Hawai‘i residents. Right now, the worst thing the state could do is take more of your money by raising taxes.
However, some see Hawai‘i’s general excise tax — 4.5 percent on O‘ahu and 4 percent on the Neighbor Islands — as small compared to the national average sales tax of about 6 percent.
This is misleading because unlike a sales tax, an excise tax must be paid on goods and services every time they change hands, from the producer to the cargo ship to the retail store. In effect, Hawai‘i’s excise tax is equivalent to about an 11 percent sales tax. By the time a product reaches a consumer, these taxes have accumulated at each step and passed on in the price tag.
This results in high prices for goods that can be a heavy burden on our citizens when they are stretched to pay for basic necessities during these economic times.
We cannot tax our way to prosperity, and increasing the general excise tax, even 1 percent, would lead to job loss, hurt our tourism industry and, ultimately, jeopardize Hawai‘i’s long-term economic recovery.
In order to restore efficiency to Hawai‘i’s general excise tax without increasing the tax rate, we need to make sure that all businesses that enjoy exemption for the excise tax make a timely return for their taxes, as well as expressly claim their entitlement.
Over time, the general excise tax’s efficiency has been downplayed due to additions of exemptions from the tax for particular businesses. Many of these exemptions allow for businesses to avoid paying the general excise tax altogether. And because some businesses pay no tax, they file no tax returns.
We are all in this together. That is why the Administration’s supplemental budget includes the temporary use of the Transient Accommodations Tax from the counties to help balance the state budget until we recover from this national and global economic downturn.
In addition, the Cash Economy Enforcement Act of 2009, which took effect July 1, 2009, provides the Department of Taxation with additional resources and tools to investigate suspected violations of tax laws, especially cash-based transactions in order to make sure that all sectors of Hawai‘i’s economy are paying their share of taxes.
It ensures that those who transact business in cash pay the fair amount like others who deal in credit cards, checks and other traceable monetary dealings. This act also provides the department with various enforcement tools, including the authority to issue monetary fines and cease and desist citations.
However, making sure everyone pays their fair share of taxes is only part of an effective tax policy. Simply raising taxes on our residents and small businesses is not a solution. It’s part of the problem.
We must remain committed to enhancing the future prosperity of our great state, which begins with improving public education.
Our state’s number one resource is our people. Government’s job is to provide a fair tax environment that encourages their success and gets out of their way so they can do what Hawai‘i’s businesses do best: work hard, create jobs and invest back in our local economy.
James “Duke” Aiona Jr. is lieutenant governor of Hawai‘i. He is running for governor this fall.
My relationship with Cec Heftel goes back 40 years when I was a University of Hawaii graduate student running for the U.S. Senate, along with environmentalist Tony Hodges during the Vietnam War. Tony and I were against the war and we both stood a very good chance of winning the Democratic nomination when Cec entered the race at the last minute. I remember picketing KGMB-TV, which Cec owned at the time, demanding a debate with him. Although he emerged the winner of that race, a lifelong friendship began for which I am extremely grateful.
It’s poignant to me that he has passed away at this time when we are about to have a special election for the same office he once occupied and I am leaving. In 1986, Cec left his House seat to run for governor, and I won the special election but lost the primary election on the same day in September to fill his seat. My wife, Nancie, and I had to move to Washington, D.C. without much money and no place to live. Cec called, offered his apartment and literally put a roof over our heads. He also asked his staff to stay on to help me participate as fully as possible in the work of the Congress from September until January. He was gracious, friendly, and couldn’t have been more accommodating.
After he lost his bid for the governor’s office in 1986, I often sought his advice and counsel. He was always courteous and generous with his time. Eventually, he ran for the Board of Education, and I supported him. We talked a lot about education during his time there, and he made a tremendous contribution.
Cec Heftel had a devotion to Hawaii that was complete. He demonstrated this through his many years as a leader in the broadcasting industry and a distinguished career as a public servant. I will always cherish his warmth, kindness and good counsel.
He didn't need to leave behind impressive buildings or heroic statues or huge parks to be remembered. He left a rich inheritance of public service based on a genuine love of Honolulu and everyone (in) it, from the oldest to the youngest; from the most accomplished to the most unskilled; the most secure to the most vulnerable. And everyone in Honolulu is an heir to that legacy.
For many of us, Frank Fasi seemed like he'd always been our mayor, and always would be. I had the great privilege of working closely with him during my service on the City Council, and I can say without qualification, that people always knew exactly where they stood with him. He was totally without pretense or artifice. He never had a hidden agenda.
His passing leaves me with mixed feelings. On one hand, I am saddened because he is no longer with us, and I will miss him. At the same time, I think we should celebrate such a full life so well lived.
Thank you, Mr. Mayor.
Everyone is an Organizer: “This campaign is not about me. The people of Hawaii are the heart of this campaign.” T... http://bit.ly/aXlicA
Live interview in a couple of minutes (@neilabercrombie live at http://ustre.am/hiD)
Broadcasting live now! See me at http://www.neilbercrombie.com
Broadcasting live now! See me at http://www.ustream.tv/channel/neil-abercrombie
Broadcasting live now! See me at http://www.neilabercrombie.com
Broadcasting live now! Neil Abercrombie HQ Grand Opening at http://www.neilabercrombie.com
I have shared an audio update using #Cinch, check it out: http://bit.ly/cErEm4
Democratic Party Caucus Tonight: Tonight you have an opportunity to participate in politics at its most local, gra... http://bit.ly/d3qbGX
I have shared an audio update using #Cinch, check it out: http://bit.ly/dsogjy
Mayor Frank Fasi service program http://ow.ly/i/Cx2
I'm at Honolulu Hale, remembering Mayor Frank Fasi.
Restoring Trust: Yesterday, on his first day after formally leaving Congress, Neil Abercrombie filed his nominatio... http://bit.ly/aAs7dt
Rescheduled Grand Opening of Headquarters this Saturday, March 6, at 11 a.m.: We postponed the grand opening of Ab... http://bit.ly/bkJY1C
Making my final comments to the media after filing to run for Governor. http://twitpic.com/163266
Answering media questions outside of State Elections Office in Pearl City (HI) http://twitpic.com/1630go