We disagree with the "F" rating given Hawaii, especially on the rankings for our state in three areas: labor, taxes, and state support for small business. According to the Handbook of Labor Statistics, 1980, the percentage of estimated private non-farm working time lost to labor disputes in Hawaii from 1969 to 1978 is lower than the U.S. average. For what reason, then, is Hawaii ranked 48th in the labor force category?

Hawaii is peculiar in that 10% of the population of the state on any given day is made up of visitors, who spend significantly more than residents during their stay. These visitors contribute substantially to the state's revenues and significantly relieve the burden of taxation borne by resident businesses and individuals. A recent study by the Council of State Planning Agencies ranked Hawaii 29th lowest in hypothetical manufacturing firm tax burden and 38th lowest in percentage of taxes with an initial impact on business.

While it is true that none of our legislative committees, advisory boards, or assistance offices are titled "small business," Hawaii provides not only direct financial assistance to small business, but also technical assistance, promotional and cooperative advertising assistance, state-supported employee training, vocational education, and general economic research. Small businesses in Hawaii are well represented on the state's numerous advisory commissions.

EDITOR-NOTE:

According to the Directory of National Unions and Employee Associations, Hawaii had a unionization level of 27.9% in 1970 and 32.1% in 1978, the 5th highest in the nation. It was one of only four states to experience an increase in unionization during that period. Other factors that lowered Hawaii's rating were dollars expended for vocational education (it is the 10th lowest in the nation) and percentage of workers who are high school graduates. INC. attempted to measure the tax burden borne by small businesses in all industries, not just manufacturing. For this reason, we relied on total corporate taxes per capita as the most appropriate indicator.