So there I was talking about how tax credits are an easy path for lawmakers to take, since they generally please the specific while causing little direct pain to the general. For that reason, I said, they are hard to repeal and easy to stick into the tax code.

Well, who would know that lawmakers have — at least on paper — actually made a stab at rationalizing the ever-growing list of exemptions to our excise tax code! A bill, SB2829, “sunsets” or kills off tax credits in batches between now and 2012.

But wait a minute. The exemptions aren’t killed off outright. First, a study must be conducted to see whether the credits should be eliminated, modified or — as is likely — continued. Make no mistake: These credits will not die an easy death.

Already, as the bill has moved through the Legislature, some pieces have been taken off. The exemptions for public utilities (who pay a different kind of tax anyway), for lifeline telephone service and for ethanol facilities, among others, have already been taken off the list. Likely there will be more.

For a hint, take a look at who supports and who opposes the bill. The HGEA, whose members rely on robust state tax collections for wage increases, is all for it. Opposed is everyone from the Chamber of Commerce of Hawaii to the Hawaii Solar Energy Association, Twin Chimneys Entertainment LLC, the Hong Kong China-Hawaii Chamber of Commerce, L’Amour Wedding Bridal Salon and many, many more.

Once again, the specific will become the enemy of the general. But, give them credit for at least trying. If nothing else, this will throw a spotlight on the resistant nature of these credits.

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On another note, I recently blogged on Sen,. Daniel Akaka’s hesitation about a proposal by Sen. James Webb to expand GI educational benefits for vets of the Gulf, Iraq and Afghanistan war. Akaka is Chairnman of the Veteran’s Affairs Committee and is all for veteran benefits. But he had troubles with the bill because of its impact on the Veterans’ Administration and on the military’s ability to keep people in the service (if the benefit is too sweet, they leave, hollowing out an already over-extended military).

Well, apparently a little quiet ruffling of feathers from the Akaka camp accomplished its purpose. Akaka has announced that satisfactory changes have been made and now he is fully on board with Webb’s 21st Century GI Bill (s22).

All’s well that ends well, one supposes.

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