Ward unveils plan
for cutting taxes, cost of
living in Hawaii

By Helen Altonn
Star-Bulletin

Republican Gene Ward says he would use his "majority voice" in Congress to support tax relief, cost of living reductions, business incentives and other changes to spur Hawaii's economic recovery.

Ward, a state representative trying to unseat Democratic U.S. Rep. Neil Abercrombie, today unveiled a plan he says would "stimulate the local economy and put Hawaii on the road to full recovery, growth and prosperity."

Abercrombie said, "Mr. Ward is way behind the curve." He said Hawaii's Democratic delegation already is bringing billions of federal dollars, jobs, programs and projects here and increasing funding for teachers and education.

Ward's priority is to reform the Jones Act, which requires ships to be America-made and crewed. He says it would lower the cost of living in Hawaii. But Abercrombie says Ward's proposed reforms would hurt Hawaii and "detract us from the game plan we are already implementing as a congressional delegation."

Among other proposals, Ward calls for a reduction in the capital gains tax, a $1 million death tax exemption for family-held businesses and small businesses, reduced government red tape on small businesses, and tax relief for Hawaii families. He said he supports a flat tax, with exemptions for home mortgages and charitable contributions.

He says a flat tax would "spur an increase in work, saving and investing."

He also proposed that "new tax forms would fit on a postcard," and that the first $33,000 for a family of four would be exempt from taxation.

Abercrombie said some of Ward's proposals have already been enacted: A $1.3 million death tax exemption was passed in the tax relief act last year and capital gains taxes also were reduced.

He said a flat tax "has not been able to get past first base in Congress" and asked what Ward is proposing to offset the loss of revenues from tax cuts. Any tax cut proposal in Congress must be accompanied by a plan to offset revenue losses, he pointed out. "The flat tax is a killer."