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Hawaii's Tax Pyramid plan crippling small businesses

State's answer to its budget deficit is crippling small construction companies

(page 3 of 3)

Honolulu shows Highest Cost increase

This chart shows the hypothetical cost of similar construction bids in 11 U.S. cities and how those costs have changed since last year. The chart was created by Rider Levett Bucknall, a global property and construction consulting company. It indicates that Honolulu had the biggest construction-cost increase from January 2011 to January 2012 – an increase more than double that of any other city. RLB says this index tracks the true bid cost of construction, including labor and materials, general contractor and subcontractor overhead costs, fees (profit) and the standard taxes for construction contracts in that city.

 

Honolulu construction: poised for an upturn?

This chart estimates the current position of each city is its construction-business cycle, according to Rider Levett Bucknall, a global property and construction consulting company. RLB says current indicators show that the cities on the left appear poised for an upturn in construction activity; the closer the city is to the rising line, the closer it seems to be to a significant upturn. Honolulu is furthest from the rising line, indicating it may be the last of these cities to rebound. Cities on the right side of the chart are at the end of a construction cycle and there is no evidence yet of a pending rebound in construction activity there. For example, indicators show that Las Vegas is the major city that is furthest away from a construction upturn.

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Apr 6, 2012 05:00 pm
 Posted by  WCLoeffler

This is an excellent article and everything written is very true. Now we have to band together to make sure it does not roll over....Our State is killing the hand that feeds the bird.

Apr 26, 2012 02:52 pm
 Posted by  Happicat

Great article! The State continues to make it difficult for all small businesses in Hawaii to thrive. We always say "lucky we live Hawaii" ... but that only goes for the weather!

Jul 18, 2012 11:44 pm
 Posted by  Virtual

Awesome article! When a construction project is bonded, payments are made to the bonding company rather than to the prime contractor for the project. The bonding company will pay the subcontractors, retain any amounts due to it, and pay the remainder to the prime contractor.
In this situation, the bonding company is only
considered a custodian of the funds, and will be taxed
on its share of the income only.

Jul 18, 2012 11:47 pm
 Posted by  Virtual

In this situation, the bonding company is only
considered a custodian of the funds, and will be taxed
on its share of the income only. The prime contractor,
however, must report as gross income the contract
amount, although it may claim any allowable
deductions such as the subcontract deduction.
Why should the contractor pay the 4% on the full contract amount when he only gets paid for the labor that he provides. example: 400,000.00 job and he gets only 150,000.00? WHERE'S THE JUSTICE IN THIS!!

Jul 18, 2012 11:52 pm
 Posted by  Virtual

AND YES, WHO IS ENFORCING THE PVL LAWS? A TEAM OF INSPECTORS WOULD ENSURE THE INCOME THAT THEY SEEK AND THE LICENSED TRADESMEN WOULD BE ABLE TO SECURE THE BIDS THAT ARE NOW GOING TO THE UNLICENSED ELEMENTS WHO ARE RIGHTFULLY NOT PAYING INTO THE THE POT! IT'S THE SAME OLD THING, THE GOVERNMENT CREATES THE LOOP HOLES FOR THE CHEATERS! LET THE CHEATING BEGIN, IT'S ALL FAIR GAME OUT THERE ACCORDING TO THE STATE OF HAWAII WHO FAILS TO RECOGNIZE THE NEEDS OF SMALL BUSINESS!

Aug 15, 2012 05:58 am
 Posted by  brettlee

Thank you for sharing this information this post is very useful.
Burlington Airport Transportation

Aug 15, 2012 05:59 am
 Posted by  brettlee

Your article is wonderfullthanx for sharing this. Vorsorgen

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