[ OUR OPINION ]

Tax reductions will
create little stimulus

THE ISSUE Congress has approved a $350 billion package of tax cuts and assistance to states aimed at energizing the economy.

AMERICANS are not clamoring for tax cuts but will be given a generous package of reductions over the next decade. President Bush says the cuts will put more money in people's pockets, revive the economy and create more jobs, but most economists are dubious at best. The greater likelihood is that it will increase the national debt, forcing Congress to increase the red-ink limit by nearly a trillion dollars to $6.4 trillion.

The president asked Congress to lower capital gains tax rates and eliminate income taxes on corporate dividends, which would have reduced federal revenues by $400 billion over the next 11 years. The theory is that those actions would encourage investment, resulting in more productivity, economic growth and jobs.

That seems logical. However, two years ago, Congress approved a 10-year tax cut of $1.3 trillion, one of the largest in history, with the explanation that the economic stimulus would create more jobs. Since then the country has lost nearly 2 million jobs.

Bush asked for a tax bill this year that would have lowered revenues by $726 billion over the next decade. He embraced the $350 billion measure approved by Congress, undoubtedly realizing that it could end up exceeding his proposal.

The most popular parts of the bill are temporary -- one-year tax breaks for married couples, an increased tax credit for children and reductions in taxes for capital gains and dividends through 2007. If those reductions are made permanent, which is likely, the tax reductions will exceed $800 billion over the next 10 years, according to the Center on Budget and Policy Priority, a liberal research institute.

In the short term, the bill approved by Congress provides larger tax cuts than those proposed by the White House. Bush's plan would have lowered taxes by $35 billion in the current fiscal year, which ends Sept. 30, and $117 billion in fiscal year 2004, according to the Congressional Budget Office. The bill approved by Congress is expected to result in reduced revenue of $61 billion in FY 2003 and $149 billion the following year.

As the government allots huge amounts to rebuild Iraq and prepares for the retirement of baby boomers, America is being directed to fall further in debt. As Federal Reserve Chairman Alan Greenspan warned Congress last week, "Deficits do matter."

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Park warning signs
need careful thought

THE ISSUE The state gets relief from lawsuits involving accidents in natural areas.

A NEW law limiting the liability of the state -- and taxpayers -- when someone is injured on public lands does not release authorities from their obligation to calculate and warn of potential dangers and from properly maintaining hiking trails and parks.

Officials should seek expertise in fashioning the warning signs the law requires. The signs should note risks and conditions clearly but concisely so that novices and visitors unfamiliar with Hawaii's geology can assess their skills and willingness to engage in outdoor activities. Providing additional information in pamphlets and on tourism Web sites also would be helpful to tenderfoot tourists.

The law approved by the state Legislature early this year follows a court ruling that found the state negligent in a 1999 accident at Sacred Falls park where eight people died and dozens of others were injured when boulders and rocks collapsed into the narrow valley. At least 10 signs at the start of the trail leading to the falls warned of possible rockslides and flash floods, but a judge declared them inadequate and plaintiff testimony indicated the signs may have been confusing.

For this reason, the state should adopt consistent standards for signage, as the National Park Service and the U.S. Army Corps of Engineers have done. All the elements of a sign -- size, typography, language, placement, even color -- should be examined thoroughly so that information is conveyed without ambiguity. The aim is to alert people to hazards even though it should be obvious that hiking atop a muddy ridge or through a tight river valley carries risks.

Upkeep of public recreation assets should not be neglected. If the state and the tourism industry are promoting Hawaii's natural areas, as they did with Sacred Falls, maintaining them so they can be used with reasonable safety is necessary.

The law does not include liability at public shorelines and beaches, where many injuries occur and result in litigation. Lawmakers should examine this situation and come up with appropriate legislation.