Hawaii among most regressive states for taxation

Hawaii has been declared one of the 10 states with the highest taxes on the poor by the nonpartisan Institute on Taxation and Economic Policy, based in Washington, D.C.

An ITEP study released Wednesday found that Hawaii has among the highest taxes on the poor, alongside Arizona, Arkansas, Florida, Illinois, Indiana, Pennsylvania, Rhode Island, Texas and Washington.

The nonprofit research organization’s findings are reported in the fourth edition of its study titled, "Who Pays? A Distributional Analysis of the Tax Systems in All 50 States," released Wednesday and available at www.itep.org.

Porsches drive car luncheon

A Porsche parade of two, old and new, will highlight the next Auto Lunch Bunch meeting at noon Wednesday.

Guest speaker Bobby Curran, morning show host at ESPN radio KKEA-AM 1420 and KHKA-AM 1500, will discuss University of Hawaii sports.

The Kars at the Kurb display will include a 2013 Porsche Boxster, newly updated and revised, presented by Porsche of Hawaii, while Ray Freitas will bring his 1988 930S Factory Slantnose Turbo Targa. It is one of only 14 in America, according to the website of the Porsche Club of America, Hawaii Region.

The monthly video will be “The Great American Race,” which includes the Ford Model A, Stanley Steamer, Packard and Chevrolet models.

The cash-only lunch costs $14.25, which includes meal, drink and tip, and is at the usual location,
1599 Ala Moana Blvd.

Reservations can be made by contacting Ed Kemper, host and producer of “Island Driver TV” on OC 16, and auto writer for Hi Luxury magazine, at 225-2965; or Bill Maloney, producer and host of “Ohana Road TV,” at billmaloney15@aol.com.

U.S. economy shrinks 0.1 percent

WASHINGTON » The U.S. economy unexpectedly shrank from October through December, the first quarterly drop since 2009 and a reminder of the economy’s vulnerability as automatic cuts in government spending loom.

The Commerce Department said the economy shrank at an annual rate of 0.1 percent mainly because companies restocked at a slower rate and the government slashed defense spending. Those trends partly reflected uncertainty late last year about the fiscal cliff, which Congress averted in a deal reached Jan. 1.

Economists say those factors could prove temporary, and the likelihood of another recession appears remote. Still, the sharp slowdown from the 3.1 percent annual growth rate in the July-September quarter, also driven by a drop in U.S. exports, raised concerns about 2013.

Fed says growth pause temporary

WASHINGTON » The Federal Reserve said Wednesday that the U.S. economy "paused" in recent months because of temporary factors and reaffirmed its commitment to try to stimulate growth by keeping borrowing costs low for the foreseeable future.

The Fed took no new action at its two-day policy meeting. But it stood behind aggressive steps it launched in December to try to reduce unemployment, in a statement released after the meeting.

In December, the Fed said it would keep its key short-term interest rate at a record low at least until unemployment falls below 6.5 percent. Unemployment is currently 7.8 percent. And the Fed said it would keep buying $85 billion a month in Treasurys and mortgage bonds to try to keep borrowing costs low and encourage spending.

Next in BP spill saga: trial worth billions

NEW ORLEANS » Now that a $4 billion plea deal has resolved BP’s criminal liability for the massive Gulf of Mexico oil spill nearly three years ago, the company will turn its focus to a trial that could potentially cost it billions of dollars more in civil penalties.

At the conclusion of a hearing Tuesday that included emotional testimony and a BP executive’s apology, a federal judge agreed to let the London-based oil giant plead guilty to manslaughter charges for the April 2010 deaths of 11 workers on the Deepwater Horizon rig and pay the record amount of criminal penalties.

What the plea deal approved by U.S. District Judge Sarah Vance doesn’t resolve, though, is the federal government’s civil claims against BP.

Facebook surpasses expectations

NEW YORK » Facebook delivered fourth-quarter results above Wall Street’s expectations on Wednesday and sought to show that it has finally transformed into a "mobile company."

Its stock price fluctuated sharply in after-hours trading, as investors weighed lower net income and growing expenses against an increasing user base and higher advertising revenue. Facebook Inc., the world’s largest social media company, earned $64 million, or 3 cents per share, in the October-December period. That’s down from $360 million, or 14 cents per share, a year earlier when it was still a privately held company.

Lenovo’s third-quarter profits increase

BEIJING » Lenovo Group Ltd., the world’s second-biggest maker of personal computers, reported a 34 percent jump in third-quarter profit after increasing its market share and boosting smartphone sales.

Net income climbed to $204.9 million in the three months ended Dec. 31, from $153.5 million a year earlier, the company said in a statement Wednesday. Excluding a $20 million one-time gain, the figure was in line with analysts’ estimates. Sales climbed 12 percent to $9.36 billion.

Lenovo’s PC shipments rose 8 percent in the period, the only increase among the world’s four biggest suppliers, as it boosted North American consumer sales amid slowing global demand. The company has also developed mobile devices including smartphones and tablets that have helped it lure customers from Apple Inc. and Samsung Electronics Co. in China.

Revenue from China, Lenovo’s biggest market, rose 17 percent to $4.1 billion in the quarter and accounted for 43 percent of total sales. North America revenue climbed 8 percent to $1.3 billion, or about 14 percent of its global tally.

ON THE MOVE

Territorial Savings Bank has announced the appointment of Joe Chee Jr. as Kihei branch manager.

He will be responsible for branch operations and residential mortgage production.

Honolulu HomeLoans has named Keri Shepherd vice president of marketing. She will continue to originate loans with HHL as well. Shepherd was previously a loan officer and branch manager for Prospect Mortgage.

The University of Hawaii at Manoa Shidler College of Business has received $100,000 from Eddie Lam to establish the Lam Family Endowed Scholarship for undergraduate students from Macau, Hong Kong and China. He earned his BBA from UH-Manoa in 1981. Since then, Lam has established the Onlen Fairyland Co. Ltd. in Hong Kong. In 2011, Lam was inducted into the Shidler Hall of Honor.

Matson Foundation, "the charity arm" of Matson Inc., has awarded a $50,000 gift to Saint Louis School. The grant will support the school’s infrastructure and help with the improvement of the campus, which will benefit the students of the school as well as community members who attend and participate in competitions and activities at Saint Louis School’s facilities.