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
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.
• Neil Abercrombie represents the 1st Congressional District of Hawai‘i. He is running for governor this fall.
