Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 428 entitled:

begs leave to report as follows:

The purpose of this bill is to reduce the corporate income tax and franchise tax rates.

While your Committee is carefully examining the merit of each "tax cut" bill with regard to strengthening the state economy, your Committee is also taking a broader look at the implications of all of these bills in toto. It is also the intent of your Committee to pass out those "tax cut" bills that have merit to provide the House Committee on Finance with enough latitude and legislative options to help the economy.

The Hawaii Business Roundtable, Hawaii Bankers Association, and the Chamber of Commerce of Hawaii testified in support of this measure. The Department of Taxation and the Tax Foundation of Hawaii submitted comments on this measure. The Department of Budget and Finance and Kokua Council submitted testimony in opposition to the measure.

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 428 and recommends that it pass Second Reading and be referred to the Committee on Finance.