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We pay for Oahu Rail
#41
Always wondered why I was always getting charged 4.167% till I found out there's a "tax" on the GET.
What gets me is I hear from various reporters it will be a 1% increase in the GET and not a 1 percentage point increase which is really a 22.2% increase.
Of course the reporters are wrong.
Puna: Our roosters crow first
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#42
always getting charged 4.167% till I found out there's a "tax" on the GET

GET is a tax levied on business for the "privilege" of operating in Hawaii; the other 49 states (or most of them, anyway) levy a sales tax on the consumer.

Business may pass retail GET through at point-of-sale, which means they then have to charge 4% on the 4% -- but this is not required; the business can simply pay 4% of their receipts and round prices up to compensate. (They could then make all prices divisible by $0.25 and stop counting pennies, making life easier for both customer and cashier.)
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#43
EightFingers: The extra 0.167% is what businesses are allowed to charge extra in passing on to the consumer to pay for "administration". They only pay 4% to the state.

Also, it's a 1 percentage point increase in the TAT, not the GET. The GET has a 0.5 percentage point surcharge that's already in place and only applies to Oahu; it was due to sunset (I think in 2024 or something), and this bill extends it a few more years.
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#44
They only pay 4% to the state.

Businesses pay the state 4.167%.
If I sell $100 of product and charge the customer 4% tax, the total the customer pays is $104.00. The state taxes the business not on the $100, but on the $104. Which is 4.167%.
Yes, the state excise tax taxes the tax.


charge extra in passing on to the consumer to pay for "administration".

As businesses get paid nothing for collecting the excise tax and excess tax, we refer to our administrative cost reimbursement as "squat."

The Donner Party really wasn't that great of a party, was it?
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves
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#45
Yes, the state excise tax taxes the tax.

Correct, because that 4% charged to the customer is income for the business, which must itself also be taxed. Not regressive at all.

0.5 percentage point surcharge that's already in place and only applies to Oahu

State keeps 10% of that surcharge as a "handling fee", which they're graciously offering to reduce to 1%, so as to "help pay for rail".

Pass-through rate on Oahu is 4.712%. Amazing what a little "tax on the tax" will do.
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#46
The GET tax is diabolical. In fact, a merchant has to (if they are smart) pass onto the consumer the GET tax on the GET tax received on the purchase! Yes, the collected tax is actually taxed AGAIN because collecting the tax is considered INCOME (unlike a sales tax which is considered a collection for the state).

This article has the best description of this I've found:

[Slightly modified for clarity] "Because the state considers the tax you collected to be income too, so you will pay a tax on that tax you collect (confusing right?). Paying 4.5% tax on the 4.5% tax actually equals 4.7025%, but the state allows you to round up a bit and you end up with a GET rate of 4.712% of the sale amount. Most businesses force customers to pay the excise tax and then the excise tax on the excise tax, so you’ll see 4.712% on your bill, not 4.5%. On outer islands (no .5% Oahu surcharge), this means a GET rate of 4.166%. Most businesses do this because it’s common and it means that they won’t have to pay GET out of their pocket, as the customers paid it already."

http://www.ronswebsite.com/blog/hawa...al-excise-tax/

Only Hawaii can find a way to tax a tax payment. One that is required to pay rent, see a doctor, or purchase life-saving medicine. CRAZY! DIABOLICAL CRAZY.

(This example only applies to the GET taxes levied on the end-consumer, it does not even include GET taxes levied (and passed on via purchase price) from farmers, wholesalers, distributors, or other hands it passed through to get to you).

Anybody who wants to increase this crazy tax needs to be voted out of office ASAP until imprisonment for crimes against humanity becomes a viable option for them.

ETA: formatting, clarity, content
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#47
the collected tax is actually taxed AGAIN because collecting the tax is considered INCOME

Correct: Excise tax is a tax on the business whereas sales tax is a tax on the customer.

Best part: all GET is remit to the State. I'm sure they're sending us back "our fair share"...
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#48
Hi everybody, I thought i'd chime in about the view from over on Oahu...

Nobody wants the rail over here either. This is about the property owners for the sites that the rail will stop at... (Big surprise here, a lot of them are politicians!), and guess what it goes from Ala Moana (the big fancy mall) to Kapolei (i.e. the 'second' Waikiki... Aulani Disney resort, etc).

I am saying this to reinforce the concept that this isn't Oahu wanting the outer islands to help pay for their project, this is just business as usual local style...the well connected screwing over the rest of us...
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#49
Poor Disney corporation needs all us rich big islanders to bail them out. Think of the shareholders!

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#50
[quote]Originally posted by rainyjim

Hi everybody, I thought i'd chime in about the view from over on Oahu...

Nobody wants the rail over here either. This is about the property owners for the sites that the rail will stop at... (Big surprise here, a lot of them are politicians!), and guess what it goes from Ala Moana (the big fancy mall) to Kapolei (i.e. the 'second' Waikiki... Aulani Disney resort, etc).

I am saying this to reinforce the concept that this isn't Oahu wanting the outer islands to help pay for their project, this is just business as usual local style...the well connected screwing over the rest of us...

Thanks for your input!


Proverbs 29:2King James Version (KJV)

2 When the righteous are in authority, the people rejoice: but when the wicked beareth rule, the people mourn.
Slow Walker
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