Hawaiian Bill Would Transfer Public-Owned Lands to a Native Hawaiian Government

http://online.wsj.com/article/SB10001424052970203917304574412832314714444.html

Sponsored by Senator Daniel Akaka, the bill would transfer a percentage of public-owned lands to a native Hawaiian government within the state of Hawaii. The legislation would collect some 400,000 ethnic Hawaiians scattered across the country into a newly affiliated tribe, eventually endowed with the powers of a sovereign state, including freedom from state taxes and regulations and separate police power.

With some 38% of the state falling under public ownership and thus theoretically available for transfer, the benefits accruing to racial Hawaiians could be significant. For those without a drop of Hawaiian blood, the amount of lost tax revenue and other costs will also be sizable. According to a study by the Grassroot Institute of Hawaii and the Beacon Hill Institute, the total amount of state tax and land lease revenue lost annually could range from $342.8 million to $689.7 million, depending on the percentage of public land ceded to the project.

The state could also expect to lose as many as 20,000 private sector jobs and more than $200 million in investment. The burden will fall on non-Native taxpayers, costing the average taxpayer between $705 and $1,461 in real disposable income a year.