February 8, 2011

Chair Green, Vice Chair Nishihara, and Members of the Committee on Health:

The Hawaii Restaurant Association with over 3,500 locations directly employing over 82,000 dedicated people here in the State of Hawaii respectfully opposes SB 1289 that proposes new taxes and fees on beverages.

With high unemployment and the shakiest economy in a generation, our citizens are facing the greatest challenge in their lives. Increasing taxes on them will put further burden on them.

This bill will also tax on tax the cost of grocery items like beverages because of our excise tax structure. The result is less money for food in order to satisfy the state coffers. This in turn will result in less consumption, then in fewer sales for the many restaurants and small businesses, and fewer jobs here in Hawaii.

Singling out items like soft drinks and other beverages is discriminatory and regressive. This will hurt the lower and middle income families who can least afford this and, on top of that, hurt the many “little league” sports activities that take place every week here in Hawaii by increasing their weekly budgets where they have none to give.

Trying to solve the State’s fiscal challenges by placing the burden on our families is wrong because you are taxing the kids and their activities and the lower and middle income families, who can least afford it, on their grocery bills, as well as hurting the neighborhood restaurants, grocery and convenience stores, which then hurts our local jobs, and ultimately our overall economy.

In summary, the HRA respectfully urges you to not pass SB 1289.

Very truly yours,

Hawaii Restaurant Association

Victor Lim / Bryan P. Andaya / Tom Jones

Co-Chairs, Government Relations Committee