Republicans stage rally
to derail any new taxes

---

Associated Press

Chants of "No new taxes!" echoed through the state Capitol atrium yesterday as Republican lawmakers held a rally denouncing tax proposals advancing in the Legislature.

A few dozen people attended the rally chanting and carrying signs reading, "Spend less," "Put the Legislature on a diet" and "No new taxes."

Legislature Directory Legislature Bills & Hawaii Revised Statutes

Republicans cited three proposals approved by the Senate that they said would raise taxes by about $430 million a year:

>> A proposal hiking the state's 4 percent general-excise tax to 4.5 percent with two-thirds of the proceeds -- about $120 million -- going to public education.

>> A bill granting counties the authority to impose a 1 percent retail-sales tax.

>> A measure to fund a state long-term care program through a graduated monthly tax on all Hawaii workers starting at $10.

"Either one of these increases is going to be very painful," said Rep. Barbara Marumoto, R-Kalani Valley-Diamond Head.

All three Senate-approved measures are headed to conference committee, where they will be part of negotiations with the House over balancing the state budget.

House lawmakers and Gov. Linda Lingle are opposed to increasing the general-excise tax.

Without the increased revenues from a tax hike, "I think there would be significant cuts to the education budget," said Senate Ways and Means Chairman Brian Taniguchi (D, Moiliili-Manoa). "I think people don't see that at this point."