Taxation with every transaction, regardless if you’re the buyer, the seller, the middleman or the messenger:
G.E.T. is an unusual example of an excise tax found in the State of Hawai‘i. In lieu of a sales tax, the State of Hawai‘i imposes a General Excise Tax, or GET, on all business activity in the State. The GET is charged at a rate of 4% for most businesses and 0.5% for wholesalers. The tax is imposed on all business entities, so in essence, the tax is collected at every level of production (material supplier to manufacturer to wholesaler to retailer.) The GET is also charged on all business service activity such as real estate agent commissions, lawyer fees and the like. With Hawai‘i’s industry heavily dependent on tourism and tourist spending, the State regularly raises nearly half its government revenues through the imposition of the GET. Hawai‘i’s GET has been criticized for having a disproportionate impact on low-income families, owing to the fact it is charged on all intermediary transactions (such as those between wholesaler and retailer) as well as services, resulting in a pyramiding effect as costs rise in relation to final retail prices. -- Wikipedia
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