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Editor’s Note:ÌýOn Friday, asking debate teams to argue whether there should be a further increase in the general excise tax to fund rail. Katelynn McDaniel argues in favor ofÌýthe motion.

With the cost of rail being almost double its initial projected cost at a whopping $9.5 billion, lawmakers and citizens of Oahu alike are raising eyebrows.

Stakeholders have been debating the most cost effective methods for funding the rail project in Hawaii for decades now. The general excise tax as a funding source has been heavily debated, and is currently being reevaluated.

The general excise tax is comparable to a sales tax in that businesses add it onto each sale in order to pay for the taxes owed to the government. Right now, the GET is at 4 percent on all islands except Oahu, where it is approximately 4.5 percent. The reason the GET is higher on Oahu is because of the rail. Lawmakers are considering both increasing the tax and extending its duration.

While everyone hates the notion of raising taxes, there are very few options if the state of Hawaii intends to complete the rail project. Hawaii’s government has sought out different avenues to raise the necessary funds along with the GET, to include seeking federal grants. The federal government so far has granted $1.55 billion to fund rail, and if the state fails to complete the project, it will be required to pay the federal transit back the $1.55 billion, $900 million which is already in use.

The GE tax should be increased and extended to complete the rail project, thus avoiding repayment of the $1.55 billion grant monies while improving infrastructure.

The reasons why the increase and extension of the GET is preferable are as follows:

1) The GET is inclusive pulling from visitors and residents.

The application of the GET to general sales ensures that the burden of funding the rail project does not fall solely on Oahu residents. As the largest source of private capital in Hawaii, tourism accounts for at least 20 percent of the GET contributing approximately $11.4 billion in visitor spending and $1 billion in tax revenue.

2) Continued use of the GET provides a measure of certainty and ease.

At this point, Oahu is already using the GET as a resource to fund the rail project. As such, an increase in the GET would be preferable to the alternative of adding new taxes to be implemented in conjunction with the GET. Continued reliance on the GE tax would ensure stability for both businesses and residents, as neither would have to endure the burdens that come with the infrastructural changes in implementing a new tax.

Additionally, continuing to follow the current model provides a measure of certainty as it is easier to anticipate the revenue generated through its utilization. Implementing a new tax in addition to the GET can increase population dissatisfaction and negatively affect future progress still needed to complete the rail.

3) The GET does not take funding away from other organizations.

If the GET is not used as the resource for the rail, then other funding will have to be pulled from different county-funded organizations. Safe and reliable transportation is important, but it should not be prioritized over affordable housing or homelessness. It also reduces conflict with other organizations. For example, if a lodging tax is added to hotel room fees, it would be fought by special interest groups and could also deter tourists from visiting the islands if they feel prices are too high.

4) Although people will spend more on GET, the rail is still a good investment.

Relying on a personal vehicle is very costly in Hawaii, especially for those who commute daily. In addition to the cost of maintenance, registration and safety check fees, drivers have to pay for gas, insurance, parking fees, parking tickets etc. This investment will continue to pay off when the rail is completed. People will save hundreds if not thousands a year by not having to take care of all of the needs that come with a car.

It’s undeniable that the people who will be affected the most are the groups in lower socioeconomic classes. Perhaps the government could implement a tax break to allow residents are who are affected the most to get some relief from the increase.

This may seem daunting to a lot of residents on the island, but finishing the rail offers hope.

Despite the problems the rail may have caused, there are plenty of solutions it offers.

There are some people who spend up to four hours a day travelling to and from school and work. With the rail, it can cut the commute to less than half.

It could allow cities like Kapolei to flourish as a second city. The rail creates a better quality of life by providing more choices of employment and opportunities to access college.

Raising taxes is a tough pill to swallow for anyone, however raising the GE tax is the best option for Oahu residents.