By Tom McAuliffe
HONOLULU, HAWAII — The Grassroot Institute of Hawaii (GRIH) has released a new study from the Beacon Hill Institute at Suffolk University.
The Economic Impact of the Akaka Bill: Unintended Consequences for Hawaii estimates that the Akaka bill could cost the state up to $690 million per year in lost revenue.
The Native Hawaiian Government Reorganization Act of 2007 (S.310 and H.R.505) in the 110th Congress, also known as the Akaka Bill after sponsor Senator Daniel Akaka, proposes to create a sovereign Native Hawaiian Governing Entity (NHGE) within the state of Hawaii. This is the first study on the economic impacts of the proposed bill, which is expected to be re-introduced in the new session of Congress.
The Economic Impact of the Akaka Bill: Unintended Consequences for Hawaii is a straightforward look at how passage of the bill would hurt Hawaii business while pitting neighbor against neighbor,” said Grassroot Institute President Jamie Story. “Regardless of one’s feelings about the Akaka Bill and its benefits or shortcomings, it is vital to examine the economic impact of the bill on Hawaii’s people. This study demonstrates the irreversible economic damage the Akaka Bill would do to Hawaii, and we hope Washington DC officials will take this into consideration.”
Among the study’s findings:
• The bill could exempt Native Hawaiians living or shopping on land ceded from the state from paying state income and sales taxes.
• There may be a transfer of state-owned lands to persons designated as native Hawaiians to the detriment of non-Native Hawaiian taxpayers and, correspondingly, to the state economy. The resulting tax increases would have large, negative impacts on the state’s economy leading to a possible reduction of 20,793 private sector jobs, a loss of $417.2 million in investment and a loss of $1,461 in real per-capita disposable personal income annually.
“We’ve looked at the bill, as introduced in the last session of Congress, from many different angles and have provided an objective in-depth analysis of what the economic impacts might be on Hawaii and its citizens,” said Dr. David Tuerck, Executive Director of the Beacon Hill Institute and co-author of the study. “In The Economic Impact of the Akaka Bill: Unintended Consequences for Hawaii we’ve identified the most likely effects of the Akaka Bill on the Hawaiian economy. By almost any plausible interpretation of the bill, those effects are uniformly negative,” adds Paul Bachman, Director of Research at Beacon Hill.
The new The Economic Impact of the Akaka Bill: Unintended Consequences for Hawaii study is available free of charge at the Grassroot Institute web site. Please visit: http://www.grassrootinstitute.org/studies for more information.
Tom McAuliffe is the communications director for the GRIH. The mission of the Grassroot Institute of Hawaii is to promote individual liberty, free market economic principles and limited, more accountable government.
The Beacon Hill Institute engages in rigorous economic research producing readable analyses of current public policy issues for voters, taxpayers, opinion leaders and policy makers. Please also visit: http://www.beaconhill.org for more information on that organization.
