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Senators’ new tax bill
is power, money grab

THE ISSUE The Senate revives its excise tax measure to pay for transportation improvements.

THE state Senate's plan for funding transportation improvements is no better now than when it was first proposed. It steals from counties the legitimate power to make their own decisions and snatches a portion of the increased revenue for state purposes.

Senate leaders should back off from their attempts to link excise tax financing for transit with raising tax deductions. They should also stop their insistence on controlling how the funds are used.

Lawmakers are finishing work today on a bill that would authorize counties to raise the state excise tax to pay for transportation improvements. The Senate had recommended a surcharge of up to 0.5 percent while the House favored an increase of as much as 1 percent. The exact increase would be left to each county to decide.

However, as the legislative session winds down, Senate leaders have revived their earlier plan to retain dominion over spending. Their proposal would impose a 1 percent excise tax hike statewide and have lawmakers parcel out a fixed amount to counties as they see fit. In addition, some of the revenue would flow into the general fund and another portion would be used for a possible increase in the state's standard tax deduction.

Raising the deduction would provide some relief for lower-income taxpayers, but that should not be contingent on the transit tax. Further, support for the tax increase has been based on the need for traffic improve-ments, not to boost fresh revenue into state coffers.

The excise tax increase is primarily aimed at financing a mass transit system for Honolulu, an expensive undertaking that would not directly benefit neighbor island residents. An across-the-board increase would be an unfair burden and undercut decision making that rightly belongs to counties to raise amounts to fit their needs and to determine what residents are willing to pay.

The House is correct in holding to its position to leave these matters to county leaders. Members should prod their counterparts in the Senate to do the right thing -- give up their attempt to amass more power and money.

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State should consider
stem-cell research

THE ISSUE Lawmakers might recommend a feasibility study of public funding for stem-cell research.

MORAL and ethical guidelines for research using human embryonic stem cells are being recommended by the National Academy of Sciences. The suggested ground rules come in time for states to advance the valuable research that is denied significant federal funding. The Legislature should go forward with a study on the feasibility of public funding of stem-cell research in Hawaii.

The Bush administration put limits on federal spending for stem-cell research in 2001, under religious arguments that it would lead to human cloning. The research is potentially valuable in treating Parkinson's disease, heart problems, diabetes and other ailments.

The guidelines call for restrictions on incorporating human embryonic stem cells into animals and a limitation of 14 days that human embryos can be grown in culture. A key proposal by the 10-member panel calls for a system of local and national oversight committees comprised of researchers, experts in law and ethics, and members of the general public.

The guidelines were completed ahead of schedule so the new agency overseeing stem-cell research in California can use them in setting standards. The agency must create standards before distributing $3 billion in research grants approved by California voters last year. New Jersey has pledged $400 million for such research, and Massachusetts is close to approving funding.

The Hawaii House and Senate have passed resolutions calling for a feasibility study of public funding of stem-cell research. The House version would assign the study to the University of Hawaii, and the Senate version would assign it to the Legislative Reference Bureau, a research arm of the Legislature.

The Senate concern that assigning it to UH would be a conflict of interest, since the university would eventually receive the research money, is valid. The university's opening of a 216,000-square-foot medical research building in Kakaako is scheduled in August.

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