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KINGDOM OF HAWAI’I A PROPOSED PLAN FOR ECONOMIC RECOVERY AND PROSPERITY INTRODUCTION Even before the current worldwide recession Hawaiian businesses were losing ground in their efforts to obtain the revenues and profits necessary to provide the well paying jobs and full employment which are the measures of the economic health and prosperity worldwide. Shortsighted lending practices, red tape, taxes upon taxes, monopolies and the greed of big businesses are slowly killing what should be a thriving full employment economy throughout our islands. The current recession has made things worse. For small businesses, which combined in number are the largest employers in our Islands, the problems are rapidly becoming overwhelming. The residents of our Islands, retired and wage earners, Hawaiian and non Hawaiian, and their families continue to suffer, many at or close to economic disaster. Unemployment and underemployment rates continue to rise throughout the Islands. Yet taxes, fees, the cost of everyday goods including food and necessities, small loan and credit card interest and charges, and fuel prices continue to rise. Real spendable income continues to drop-even for those lucky enough to have a “good job”. The number of bankruptcies, residential foreclosures and the number of homeless individuals and families grows daily. FullOn Holdings, Inc., a native Hawaiian owned and managed corporation, sponsor of the Kingdom of Hawai’i National Elections of August 2009, realized several years ago that the elections to adopt a new Restoration Constitution and elect government officials, although they would restore the sovereignty and governance of the Kingdom of Hawai'i over the islands of the Hawaiian Archipelago pursuant to the United Nations Charter and international law, would not bring economic prosperity to the businesses and peoples of our Islands. A broad yet detailed Plan For Prosperity for our Islands and our people was urgently needed. For the past three years the officers and staff of FullOn Holdings have studied the unique economic realities of doing business in and living in the Hawaiian Islands, utilizing when needed the services of outside consultants and information sources to obtain skilled opinions and data. A Plan For Economic Recovery and Prosperity slowly evolved. Key elements of the Plan have been embedded in the Restoration Constitution. Other key elements are a matter of sound implementation in the coming months through the cooperative efforts of the Kingdom’s government and Hawaiian businesses and individuals. The Plan is not to undertake extensive residential and commercial developments throughout our Islands, indeed the rapid and often thoughtless development projects of the past have been part of the problem and, if continued, will ultimately permanently scar the beauty and warmth of our Islands. What is needed is a plan to remove obvious economic injustices which are slowly destroying our businesses and families, while simultaneously developing well paying permanent jobs for the Kingdom’s citizens and residents. THE REVENUE AND EXPENDITURES SET OUT INTHIS PROPOSAL ARE SUBJECT TO MODIFICATION AS MORE PRECISE REVENUE DATA BECOMES AVAILABLE— THE EXPENDITURES PROPOSED WILL BE ADJUSTED TO MEET ACTUAL AVAILABLE REVENUES. THE IMPORTANCE OF THIS PROPOSED PLAN LIES IN THE PRESENCE OF SIGNIFICANT EXPENDITURES IN CRITICAL AREAS SUCH AS HEALTHCARE, MEDICAL FACILITIES DEVELOPMENT, SMALL BUSINESS ASSISTANCE AND CITIZEN PENSION/RETIREMENT PROGRAMS AND THE CORRESESPONDING REMOVAL OF ECONOMIC INJUSTICES WHICH HAVE RETARDED ECONOMIC GROWTH AND PROSPERITY THROUGHOUT THE HAWAIIAN ISLANDS THE PROPOSAL--BUILDING AN ECONOMIC ENGINE TO POWER THE KINGDOM’S ECONOMY The following is a snap shot look at new Economic Engine which will power the economy of the Hawaiian Islands in the future. The details of each aspect of the Economic Engine are extensive and will be published in further detail as the sovereignty and governance of the Kingdom is restored. A. ECONOMIC INJUSTICES. The Restoration Constitution deals with current economic injustices 1. Mimum interest rates are set at 7.0% for residential mortgages, 12.0 % for credit cards and 10% for all other loans. Adjustable rate mortgages may not increase by more than 1% annually and may never exceed the maximum interest rates allowed. On the ninety first day after the adoption of the Constitution all loans affecting Island residents, lands and businesses are modified by law to these rates. Charging or receiving higher interest rates thereafter is deemed usury for which the Kingdom’s Parliament may establish criminal penalties. The Constitution mandates the penalty of lender loss and refund of all loan interest if the loan is usurious. 2. Business transaction fees (ATM, account overdraft etc) are limited to a onetime charge not to exceed $2. 3. Wage earner Income taxes are prohibited as are all levies and assessments based on income earned, the latter including assessments like Social Security, Medicare etc. Wage earner real income will grow dramatically while at the same time employers will no longer be required to contribute the current approximately 10% of employee wages in the form of employers’ taxes. 4. From the date of the adoption of the Constitution thru December 31, 2010 no land foreclosures of any kind may be commenced or continued if already begun. The Kingdom’s National Land Commission must represent any person or entity damaged by a violation of this constitutional provision by issuing on request Cease and Desist Orders enforceable by contempt proceedings brought by the National Land Commission in the Kingdom’s courts. Any foreclosure sale obtained during the period of foreclosure prohibition is null and void. 5. The Minimum Wage within the Kingdom is set at $12.50 per hour and may be increased by the Parliament. 6. Kingdom real estate taxes are based initially on the state of Hawai'i’s assessed valuations at the date of the adoption of the Restoration Constitution. Commercial property assessed valuations are updated every three years. Residential properties, including apartments and condominium units, are re-assessed as to value only upon their sale. Residential property tax rates may not exceed one-third of the tax rate applied to commercial properties. Property tax rates for 2009 and 2010 are 5% of assessed valuation for commercial properties, 1.6666% for residential properties. 7. All election campaigns are financed by the Kingdom government. Candidate’s use of their own funds and receipt of contributions is limited. Only individuals may contribute money or services to a candidate limited to a one-time $100. True economic reform and prosperity are impossible under the current political system where big money interests can and do buy the votes and control the actions of elected officials, members of the State Legislature and members of Congress. If one could adopt only one aspect of the Plan, it would be this one. 8. Transfer title to the stolen lands back to the descendants of the original Kanaka Maoli owners and users of the lands as of the date of the 1893 invasion of our Islands by the United States. Businesses on these lands may continue their businesses by leasing the lands from the Kingdom or, as determined by the Kingdom’s National Land Commission, by leasing from the Kanaka Maoli descendant owners. 9. Treat the distributors of fuels, ie gasoline, diesel etc., as utilities regulated by the Kingdom as to their business practices and prices charged to consumers. The fuel prices rip off ends now. B. Other Key Features of the Economic Recovery and Prosperity Plan. 1. Increase tourism by making every tourist visit to our Islands a unique Hawaiian cultural experience. For example, twice weekly our Monarch will hold an Open Court for visitors, free of charge , at the Iolani Palace. 2. Increase tourism by providing dramatic Visit Hawai'i CD’s to travel agents worldwide , in their languages, for their mass distribution. 3. Increase Tourism by working directly with the hotels and tourist businesses to plan and feature in the CD’s and in ads worldwide fly/drive/hotel packages in packaged groups benefiting all airlines, car rental agencies and hotels using multiple advertising media. 4. Provide small family and individually owned land plots to citizens and residents to garden and grow fruits and vegetables if they wish to do so. We must grow locally more of the food we eat, thereby reducing food costs by reducing imported foods. Transfer title to current lessees of Hawaiian Home Lands (This is required by the Restoration Constitution). 5. Encourage mainland businesses by tax and other incentives to locate their product assembly and warehousing operations in our islands so they may better serve their Asian and Pacific Rim customers. Seek out Asian and Pacific Rim companies to do likewise for their U.S. customers. Using mostly existing buildings and facilities, this Plan feature will ultimately bring thousands of permanent jobs to Kingdom residents. 6. Establish “International Free Trade Zones “. 7. Provide for the primary use of our agricultural lands to be the growing of crops which will be consumed in the islands as well as exported. The new Constitution returns our agricultural (and other lands) ownership to the Kingdom and to descendants of the original Kanaka Maoli owners. 8. Foster to Island and inter-island shipping competition to lower freight costs. No more freight and shipping monopolies. 9. Provide quick and fair loans, grants and tax incentives to small businesses so that they may prosper and hire more permanent employees. 10. Transfer entire State of Hawai'i departments and agencies to the Kingdom’s government, thereby preserving jobs and continuing the provision of services to Island residents without interruption. The Office of Hawaiian Affairs (OHA) and the Department of Hawaiian Homelands (DHHL) will be disbanded and their employees transferred to other Kingdom government Departments and agencies. C. KINGDOM BUDGETS AND REVENUES BUDGETS
1. Upgrading the quality and effectiveness of the governmental services now provided by the state of Hawai'i. Estimated annual cost: $1 Billion Comment. The quality and effectiveness of the services now being rendered by the state of Hawai'i to Kingdom citizens and residents are rated as “Poor”. 2. Provision of adequate temporary housing and services to homeless individuals and families. Estimated annual cost: $100 Million. 3. Operation of the new National Land Commission and the Genocide Commission Estimated annual cost: $55 Million 4. Provision of adequate and effective medical, dental and prescription services to all Kingdom citizens, residents and visitors. Estimated annual cost $4.0 Billion Comment. The adoption of a socialized medicine format where the government provides medical , dental and prescription services is rejected as ineffective in providing accessible and effective health services. Instead, the Kingdom will contract with one or more qualified medical insurers to provide a high quality PPO type of medical, dental and prescription insurances to all citizens, residents and visitors. The role of the Kingdom’s government will be to establish high standards uniform coverage and service requirements, continually monitor the delivery and denial of health services by the insurers and to pay the insurance premiums. All Island visitors will pay a modest one time per visit fee and be fully insured while visiting the Kingdom . 5. Provision of grants and low interest loans to healthcare providers to enable them to increase their provision of medical and dental services by expanding and updating current facilities and establishing new clinics and facilities. Estimated annual cost $750 million 6. Provision of affordable and adequate housing to all Kingdom citizens Estimated annual cost $5 Billion Comment. The current DHHL list of families awaiting affordable housing will increase from the current 33,000 Native Hawaiian families to approximately 50,00 when updated to include all Kingdom citizens in need of affordable housing. Because very few of these families can qualify for traditional mortgage financing, the Kingdom will provide all of the families with Kingdom 3% simple interest mortgages. The homes will be purchased with no money down and at the actual cost of building the homes. The mortgages will be for 30 years with 11 payments per year-there will be no payments due nor interest charged for the month of December. Fair provisions for mandatory payment abatement and restructuring of payments will be contained in each mortgage document. The Kingdom will not sell or borrow against these mortgages. 7. Grants and low interest loans to small businesses. Estimated annual cost: $500 Million. 8. Funding of Kingdom employee retirement programs. Estimated annual cost: $1 Billion Comment: This expenditure requires further study and analysis. It is planned that the Kingdom will take over the current state of Hawai'i employee retirement obligations and the funds and assets retained by the state to fund these programs. Kingdom employee retirement programs will be modified to include personnel of public and privately owned educational institutions as a matter of employee election and will be based on fixed benefits in an annuity type benefit structure. Funds will be invested in individual private annuities guaranteed by the Kingdom. The funding obligations of the Kingdom will be maintained on a 100% currently funded basis at all times. Employees will be able to increase their annuity monthly retirement benefits by their own voluntary contributions. Kingdom citizens need retirement benefits. The future political relationships of the Kingdom with the United States may result in our citizens continuing to receive the U.S. Social Security and other retirement benefits. If not , the Kingdom will adopt its own citizen retirement program based in government guaranteed private annuities fully funded on a current basis, and wherein citizens may increase their retirement benefits by making voluntary contributions. If a Kingdom sponsored retirement program is needed, the retirement plan must be fully funded from Kingdom revenues. The Kingdom’s annual budget for each of the next 5 years beginning in 2010 will be approximately $23.4 Billion, increasing by $200 Million to $300 Million each year due to the anticipated rise in the cost of goods and services each year. REVENUES Money is the fuel which operates the machinery of governments. Governmental revenues are derived from various sources, not just from taxes. These various sources of revenue to fund the Kingdom’s annual budgets are still under study and analysis. The following Kingdom revenue sources and amounts will be updated in the coming weeks: 1. Real estate taxes and recording fees. Estimated annual revenue: $3.8 Billion 2. Vehicle registration fees, tourist fees and other fees Estimated annual revenue: $50 million 3. Business income tax and license fees. Estimated annual revenue: $ 750 Million 4. Lease of Kingdom Lands to businesses. Estimated annual revenue: $250 Million 5. Lease of lands to the United States government for military and other purposes. Estimated annual revenue $18 Billion Comment. The U.S. government currently pays the state of Hawai'i $800 Million annually for its lease use of Kingdom lands. On the mainland, however, the U.S. government often pays the fair rental value of lands it leases from others. An independent study commissioned by FullOn Holdings has determined that the annual fair rental value of the Kingdoms lands used by the United States government to be between $18 Billion and $20 Billion. The Kingdom will require that the United States pay a current fair market annual lease payment for its use of Kingdom lands. 6. It is the current belief of FullOn Holdings’ officers and staff that the Kingdom of Hawai'i can fulfill its annual revenue needs without continuing the levy of sales taxes. TOTAL ESTIMATED ANNUAL REVENUE $22.75 Billion Richard Kamahele Figueroa, President and CEO |