“Our current tax policies leave a lot of money on the table, especially around tourism.”

Editor’s note: For Hawaii’s Nov. 5 General Election, Civil Beat asked candidates to answer some questions about where they stand on various issues and what their priorities will be if elected.

The following came from Ikaika Hussey, Democratic candidate for state House District 29, which covers Kamehameha Heights, Kalihi Valley and a portion of Kalihi. His opponent is Republican Carole Kaapu.

Go to Civil Beat’s Election Guide for general information, and check out other candidates on the General Election Ballot.

Candidate for State House District 29

Ikaika Hussey
Party Democratic
Age 46
Occupation Renewable energy developer, decarbonization entrepreneur
Residence Kalihi Uka, Oahu

Website

Community organizations/prior offices held

Aina Aloha Economic Futures, treasurer; Domestic Violence Action Center, treasurer; Kalihi Valley Neighborhood Board; Hanahauoli School, Board of Trustees; Hawaii Alliance for Progressive Action, founding board; Kamehameha Federal Credit Union, former board president; Men's March Against Violence, former chair; The Arts at Mark’s Garage, former board member; Hawaiian Journalists Association, founding board of directors; Aha Hawaii Oiwi, delegate; Ha Hawaii, former board member.

1. What is the biggest issue facing your district, and what would you do about it?

Our leaders have left Kalihi behind. 

Kalihi has a long list of unfinished and unresolved problems — the lack of sidewalks, the non-functional recreation center at Kalihi Valley Homes, the lack of bus service in Kamanaiki valley. The parents at Kalihi Waena Elementary are raising their own monies to pay for bathroom repairs. Farrington doesn’t have AC in all the classrooms.

Our neighborhood is forced to play host to numerous homes for individuals in recovery from drug abuse, incarceration and homelessness, but we receive no financial benefit to offset this burden. There is a basic issue of fairness.

To make matters worse, Kalihi residents pay proportionally more in property taxes than wealthier neighborhoods. On an assessed-value basis, Kahala Avenue is paying less in taxes per square foot than Kalihi Street. The working people of Kalihi are subsidizing the luxury estates of Kahala. This is fundamentally unfair, and can be resolved by comprehensive changes to our tax code designed to make Hawaii work better for local people.

2. How do you feel about the massive income tax cut just approved by the Legislature and the governor? Do you have any concerns that it will force reductions in state services in the years to come?

This cut will be very expensive: Next year, it will cost the state $656 million in revenues, and the annual loss will continue to grow. By 2031, the tax cut will cost the state nearly $1.4 billion per year (in 2024 dollars), which is more than 10% of expected general fund tax revenues.

I am concerned that this will result in cuts to fundamental government services, which will ultimately hurt working families, youth and elders.

As a House Finance Committee budget analyst, my responsibility was the education budget, which is the largest piece of the $19 billion state budget. DOE primarily serves Native Hawaiian and Filipino youth. And as a member of both groups, I’m committed to making sure this tax break does not undermine funding for DOE and these communities committed to educating their children. 

Instead, I’m interested in identifying new revenue sources for the state. . That’s a huge puka which (like the relationship between Kalihi and Kahala) gets filled by other communities and other people who aren’t billionaires. We need tax policies which share the financial burden of our government more fairly.  

3. Hawaii continues to struggle with pay-to-play politics and corruption in government. What meaningful reforms do you think would change state government for the better?

Corrupt individuals abuse our small-town “ohana” sensibilities for personal gain and graft. We need to make it easier for individuals to speak up and raise concerns, so as representative I’d work to strengthen the auditor and ombudsman agencies.

I also support limits on campaign contributions, publicly funded elections and term limits as ways to curtail political corruption.  

4. Candidates often say they will support reform proposals in the Legislature. And yet major reform proposals don’t pass. Will you back good-government proposals even if it means going against leadership? If you are an incumbent, can you point to an example of a reform that you supported?

Yes.

5. Do you support comprehensive public financing of elections for candidates who choose to participate? Why or why not?

Yes. And I’d pay for it by levying a fee on large balances in campaign accounts. War chests should be taxed.

6. Hawaii is the only Western state without a statewide citizens initiative process. Do you support such a process? Why or why not? 

Yes. Providing avenues for direct democracy is one way to check political corruption.

There are some policies — like campaign finance reform — that are in the public’s interest that are not likely to be passed by elected officials concerned with maintaining their current control over local politics.

Initiative, referendum and recall are critical tools for maintaining “checks and balances” on political power.

7. Thanks to their campaign war chests and name familiarity, incumbents are almost always reelected in Hawaii legislative races. Should there be term limits for state legislators, as there are for the governor’s office and county councils? Why or why not?

Yes. A firm term limit — perhaps 10 years for the House and 12 for the Senate — would improve Hawaii’s political culture. It would create a sense of urgency to follow through on important matters.

For politicians, term limits would create a narrative for transitions in their careers; for political parties, it would facilitate upward movement for younger or newer advocates; and for voters, term limits would give them more choice in entrenched districts. If you have little or nothing to show for your first 18 years on the job, then why should you have more time? 

Similarly, we need to reexamine multi-member districts. Forty years ago, multi-member districts allowed many new names to come into politics, as the second or third choices in larger districts. This is another good way to cultivate a more dynamic political system, and minimize political gridlock.

Finally, I’d also like to see neighborhood boards be more empowered with their own resources and dedicated funding (perhaps from parking revenue). Neighborhood boards provide a key opportunity for direct democracy where residents can affect the quality of life in their own communities.

8. What will you do to ensure accountability at the Legislature? Do you support ideas such as requiring the Sunshine Law to apply to the Legislature or banning campaign contributions during session?

Yes to Sunshine Law for the Legislature.

I’m not convinced that banning campaign contributions during session will make an impact.

9. How would you make the Legislature more transparent and accessible to the public? Opening conference committees to the public? Stricter disclosure requirements on lobbying and lobbyists? How could the Legislature change its own internal rules to be more open?

I’d be interested in stretching the legislative session out over a longer span of months, to allow for more community vetting of proposals. I expect that we’d arrive at better decisions if we’re fueled less by adrenaline and more by the thoughtful input of all of our communities.

Our neighbor islands are still largely excluded from the process, as are all individuals who work from 8 a.m. to 4 p.m., which is when the Legislature meets, generally. A slower, more deliberative process would allow us to be more inclusive and create better policy.

10. Many people have talked about diversifying the local economy for many years now, and yet Hawaii is still heavily reliant on tourism. What, if anything, should be done differently about tourism and the economy?

We should tune our market positioning to aim for higher-dollar, higher-quality, lower-quantity, regenerative tourism.

The root of our economy is our people, and we should invest accordingly. Our education system should lead the world, as it did in the 19th century. We can do it again.

Local and global tech companies look at a variety of factors to decide on where to set up a headquarters. One of the key factors is quality of life. The harsh reality is that Hawaii’s quality of life is currently quite poor for most people.

The knowledge economy requires the same ingredients that all local people need: good schools, walkable communities, affordable housing, clean water and good food. If we maintain our focus on the basic needs of our communities, we will be able to establish Hawaii as a good place for 21st century business.

11. An estimated 60% of Hawaii residents are struggling to get by, a problem that reaches far beyond low-income and into the middle class, which is disappearing. What ideas do you have to help the middle class and working families who are finding it hard to continue to live here?

Instead of a tax cut, I’d prefer an EITC (or what Milton Friedman called a “negative income tax”), which would rebate to workers a higher amount than they would have contributed in taxes, with the goal of raising them to a sustainable level. To quote my union: One job should be enough to live in Hawaii.

Also, our current tax policies leave a lot of money on the table, especially around tourism. Lawmakers should be assessing all of the ways profit is made off of us, our land and our culture, and ensure we are collecting a fair fee on those transactions.

One example I’m thinking about is all the tourist-generated social media content, which Meta and other companies monetize through advertising. Those advertising dollars should be treated as income generated in Hawaii, and taxed accordingly.

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