Hawaii charges business people a general excise tax (GET) for doing business, and the seller of goods and services passes on that 4.5% GET to the buyer. No exceptions are made for food and medical expenses. A flat tax rate is regressive. It affects those less able to pay more than the wealthy.

Medical providers should not be taxed for their services and then pass that tax on to clients. Inflation has increased the price of food and caregiver services disproportionately to family resources for people in the middle- income range. The GET on medical services, prescription drugs and caregiving impoverishes middle-income families, which in turn, reduces their spending in the consumer economy.

Regressive taxation in the context of inflation drives people out of Hawaii and increases the need for government subsidies for those who stay. It hollows out the workforce in essential jobs: teachers, technicians, nurses, police and clerks.

It makes more economic sense to get rid of the GET on medical services and food, support middle-income workers and lift the burden from the poor.

Jean E. Rosenfeld

Downtown Honolulu

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