Tax idea
perplexes
governor

Star-Bulletin staff

A proposal by Sens. Bob Nakata (D, Kaneohe) and Brian Taniguchi (D, Manoa) to increase the 4 percent general excise tax to 5.35 percent has Gov. Ben Cayetano wondering if the Senate has suddenly discovered a backbone.

"It's interesting that now the Senate, which didn't have the moxie to pass it last year, is now proposing it," the governor said yesterday.

Cayetano was alluding to a similar tax increase that he and the House unsuccessfully pushed that was to offset the cost of tax breaks and reforms meant to revitalize the state's economy.

The proposals were all part of the recommendations from a blue-ribbon panel of business, labor, civic and political leaders, including Senate President Norman Mizuguchi (D, Aiea).

Asked, as Cayetano suggested, what his position is on Nakata's and Taniguchi's proposal, Mizuguchi replied, "If you can give me 13 votes, that's the easiest way to raise revenues. I don't think there is much support for that proposal."

And in the sensitive political environment of the 25-member Senate, Mizuguchi also needs 13 votes to remain the chamber's leader.

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