State of Hawaii Excise Tax
10 Tax Principles
Short Introduction
State of Hawaii Excise Tax
Full Explanation
Contact Information
Q and A

A working example

The 2020Tax system is an EXCISE TAX.There is a working example of an EXISE TAX in the State of Hawaii but it is used in Hawaii as an additional tax rather than the only tax for revenue at all levels of Government such as 2020Tax.

The 2020Tax is a CLEAN UNCOMPLICATED TAX. In contrast the Hawaii GET (General Excise Tax) is unnecessarily complicated because it determines what transactions are included and what transactions are excluded and it has different percentage tax rates for different types of transactions. The Hawaii GET also requires bookkeeping/accounting and the reporting and filing of forms by the tax payers, all of which is not required by 2020Tax (no accounting or bookkeeping and no filing of forms for 2020Tax).

The Hawaii GET (General Excise Tax)
The state of Hawaii raises nearly half its government revenues through the imposition of the General Excise Tax (or GET) in lieu of a sales tax. Hawaii's GET charges businesses 4% on all gross business income and at every level of production. Some agricultural and wholesale activies are charged at a lower rate. Because the tax is charged repeatedly at every level of production (material supplier to manufacturer to wholesaler to retailer to consumer) the tax is effectively a 16 - 18% sales tax on consumer goods. The GET is also charged on all business service activity such as real estate agent commissions, lawyer fees and the like.

Hawaii could theoretically go it alone
If the politicians in Hawaii would have the general welfare of the citizens of Hawaii at heart and not their own careers, they might have the guts to introduce 2020Tax as the form of revenue to replace all taxes at all levels of government including Federal taxes that now are collected by the IRS (Internal Revenue Service). Hawaii could collect all these taxes for Federal, State, County and City (local) in a single collection through 2020Tax and unburden its own population from all the accounting and paperwork nonsense and Hawaii could fund the Federal Government with 100% of the revenue it receives currently with its shameful 65,000 page IRS tax code.

The State of Hawaii could simply thumb its nose at the IRS and tell the Federal Government to stop bothering the people of Hawaii and give the IRS the same amount of money it currently receives. In fact the State of Hawaii could even offer the IRS 105% of the revenue per Hawaii resident that is received on average per resident of all the rest of the States combined. The IRS would be ahead of the game by not only the 5% extra it receives, but also the IRS would not have the cost of collection and auditing any longer. The State of Hawaii would be ahaed of the game as well because 2020Tax would boost its economy and make life easier for every business and resident in Hawaii and the State of Hawaii would save the cost of collection and auditing as well.

Will it ever happen in Hawaii? Who knows, there might be some courageous legislators in Hawaii that can resist all the lobbying from the special interests that benefit from a complicated and time consuming tax collection system. The general public in most jurisdictions is generally totally apathetic in matters of tax reform because they have heard tax reform proposals for many decades and all that happened was additional tax complication.

Let's hope for the best. Maybe a grass roots citizen action committee for 2020Tax might be the answer.