In contrast, the Hawaii general excise tax cheap rs gold applies, in the words of the Hawaii Supreme Court, to “virtually every economic activity imaginable.” Unlike the typical mainland sales tax, our GE tax does apply to wholesale transactions, does apply to services, and does apply to rents, interest, commissions, and other forms of income.” In fact, a study was done to actually see what the equivalent sale tax rate would be if Hawaii were to go towards a “sales tax” like other states, and the rate came out to be higher than
The approximate rate for a tax would be somewhere above How does this happen you ask? Let’s take a look at a typical grocery store and a loaf of bread that cost about .. The grocery store charges atax on the . loaf for a price of or tax on Oahu for a price of .. But what you may not realize is that the . price has to take into account the rent the store pays, the services it contacts with (such as paying their accountant, plumber, electrician, air conditioning mechanic, cleaners, and others), as well as any purchases it makes such as shelves, display cases, signs, flyers, light bulbs, etc.
All of these are assessed the GE tax thus added to the cost of doing business. So you can see that the State is getting much more than just the ., and more importantly to the consumer, you can see how the pyramiding effect will drive the cost of doing business much higher with even a .% bump in the GE rate. The end result is that ALL goods and services will cost more and the consumer is the one who is going to foot the bill.