Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Economic Development and Technology, to which was referred S.C.R. No. 73 entitled:

begs leave to report as follows:

The purpose of this measure is to request an increase to the business expense federal tax reduction.

Your Committee received testimony in favor of this measure from the Hawaii Business League and National Federation of Independent Business.

Your Committee finds that this measure would be beneficial to small business people because there never seems to be enough hours in their day. It is typical that most small business people work straight through their lunch hour. This is a good time to meet with front line people – accountants, attorneys, or other vendors and employees. If they are conducting business, there is no reason not to allow a full deduction for this expense.

Your Committee has amended this measure by also requesting the State of Hawaii to increase the allowable business expense state tax deduction from fifty per cent to eighty per cent, and by amending the title of the measure to reflect this amendment.

As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 73, as amended herein, and recommends that it be referred to the Committee on Ways and Means in the form attached hereto as S.C.R. No. 73, S.D. 1.