Farewell to the Print Edition of Small Business News doc

37th Annual SBH Conference & Program • Pages 3 & 4.
SB News From Paper to Digital Page 6
Success Continues for Jonathan G. Page 8
Obama Care: Health Cost to Increase Page 9
27th Legislature Set to Convene Page 3
SBH Sunrise Breakfast on Jan. 31

Page 3
Jones Act is Unconstitutional Page 5
SBH MEMBER
C A L E N D A R
PHONE 396-1724 • FAX: 396-1726
Small BuSineSS newS
Volume 38, Number 1• www.smartbusinesshawaii.com January 2013
It’s 2013. Happy New Year!
Wednesday, January 9, 2013
37th Smart Business Hawaii
Business & Investment Conference
Ala Moana Hotel • 8:00 am – 2:00 pm
Monday, January 14
SBH Directors Meeting
SBH Ofce • 12 – 1:30 pm
Wednesday, January 16, 2013
27th State Legislature Begins
State Capitol • 10:00 a.m.
Thursday, January 31, 2013.
SBH Sunrise Networking Breakfast
Dr. Patrick Sullivan, Oceanit
Macys’ Pineapple Room
Ala Moana Center • 7:00 a.m.
After 38 years of continuous monthly publication, the Small Business News fades into

the brilliant Hawaiian sunset. This is your nal printed issue; save it!
It wasn’t an easy decision but times and events change. The hard work, time invested,
cost and the economy, technological realities, member feedback and continuing problems
with the Post Ofce, all entered into the nal decision by the SBH Board.
It’s been a good run with lots of breaking news, commentary and information for your
business.
Though this is the last monthly printed issue, SB News will be available on line, in a PDF
format, and SBH will continue to offer you advice, technical information and alerts about the
Hawaii business climate. SBH will continue to offer you meaningful networking, meetings and
conferences.
We hope to see you January 9 at our 37th annual SBH Business & Investment Conference
and on January 31 at our monthly SBH Sunrise Networking Business breakfast.
Please call me personally (396-1724 or 349-5438) for any assistance or visit the websites
in the adjacent box.
Aloha and Mahalo for all your support

Sam Slom
President/Executive Director
Farewell to the Print Edition
of Small Business News
Dr. Patrick Sullivan • Details on Page 3.
Smart Business Hawaii

SBH Foundation

Education Transparency Portal

Hawaii Reporter

Happy SBH Sunrise People: The Last Print Edition Cover Photo *

PAgE 2 / SMALL BUSINESS NEWS / JANUARY 2013
SMART BUSINESS HAWAII (SBH)
6600 Kalanianaole Hwy., #212 • Honolulu, HI 96825
Ph. (808) 396-1724 • FAX (808) 396-1726
email:
Web:
Published monthly by Smart Business Hawaii,
Periodicals Postage Paid at Honolulu, Hawaii.
Small Business News (ISSN #0279-8395)
EDITOR & PUBLISHER: Samuel M. Slom
MANAGING EDITOR: Malia Zimmerman
DIRECTORS: Debi Halcro, Matt Longfellow,
Andy Mertz, Tyler Roukema, Jack Schneider,
Bob Sigall, Sam Slom, Fred Smoot and Geal Talbert.
LAYOUT & GRAPHICS: Melvin Ah Ching
POSTMASTER: Send address changes to
Small Business Hawaii,
6600 Kalanianaole Hwy., Suite 212
Honolulu, Hawaii 96825.
Small Business Hawaii (SBH), was founded in 1975, by
Lex Brodie. SBH is a private, independent, non-prot
[501 (c) (6)] statewide association of nearly 2,000 busi-
ness members.
Small BuSineSS newS
Volume 38, No. 1 • January 2013
Smart Business Views
By Sam Slom, President – Smart Business Hawaii
Small Business News,
Aloha Oe. Well, this is
it, the nal printed copy

of the monthly SB News,
after 38 years. In a front page article, I detail
what considerations went into the nal decision
to suspend regular monthly printings. We will
still continue of course
with our online website,
weekly SBH Biz eBlasts
and regular and special
meetings. You can always
call me personally (808-
396-1724) for advice,
answers to your business
questions and current
business alerts. There
may be future special
printed publications.
I want to thank many
people for their support,
including: our longtime
graphic artist who put the
issues together, Melvin
Ah Ching, our managing
Editor, Malia Zimmerman of Hawaii Reporter,
our many guest contributors, You our readers,
advertisers, Edward Enterprises our printer,
and Cardinal Mailing Services. Hope you
enjoyed our many issues, features, business
proles, cartoons and commentaries. Most are
still available on our website archives. Aloha!
Come to Our Conference! This is a

personal invitation to join me at the 37th
Annual SBH Business and Investment Annual
Conference, Wednesday, January 9, 2013, 8
am – 1:30 pm at the Ala Moana Hotel. What
a fantastic lineup of speakers, including:
Aston’s Kelvin Bloom, Kitty Lagaretta, Roy
Yamaguchi, the FBI’s Tom Simon, best selling
author Bob Sigall, Freedom Works president
Matt Kibbe and former Governor Ben
Cayetano. See the agenda and reservation
form on page 4.
Ring! Ring! Hang-up. I nally did it: I
pulled the cord on my land line with Hawaiian
Telcom December 3 after many decades. I
joined a growing number of people who are
ditching their land lines for their exclusive cells.
Why did I do it? (1) Cost – the home line went
from $29 to $42 per month since last year; (2)
service-the home phone was out of service
too much too often and (3) very few local calls
compared to massive spam, Mainland and
solicitation calls.
Coons Dies. Longtime CPA and business
leader, Richard Coons died on Thanksgiving
Day. He was married to Rep. Barbara
Marumoto. We lost many ne people—too
many—during 2012.
Higa Steps Down. Long time State
Legislative Auditor, Marian Higa, stepped
down December 31, 2012 after 21 years as

the state Auditor. Will be interesting to see
who emerges as her
replacement.
Elections Com-
mission Keeps Nago.
Despite near universal
testimony to the contrary,
on November 27, the
State Ofce of Elections
held a meeting and kept
Chief Elections Ofcer,
Scott Nago, who was
responsible for this year’s
election snafus. Many,
many people are upset
with the performance
during 2012 of the
elections ofce and Nago.
The Governor called or all
mail-in ballots. The Commission appointed a
two member investigating committee to report
back in January. Again, it appears like there
are no consequences for state screw-up. We’ll
see.
HAL to Taipei. It seems every week
Hawaiian Airlines adds yet another route.
Because of the VISA Waiver program, Taiwan
is now more lucrative and starting next July;
Hawaiian will add several weekly ights to
Taipei.

Sullivan at Sunrise. The rst monthly
SBH Sunrise Networking Breakfast Forum of
the New Year will return, Thursday, January
31, 2013, in the Pineapple Room, Macy’s Ala
Moana (3rd Floor), from 7 – 8:30 am. Sunrise
is held the last Thursday of each month,
January-November. Dr. Patrick Sullivan,
CEO of Oceanit, will be our special speaker.
Become an SBH Member. Is YOUR
business a member of SBH? No? Lots of
benets. Strong networking organization.
Call Darlyn today (808-396-1724) or go online
to www.smartbusinesshawaii.com.
What? Not receiving your weekly
(Wednesday) electronic copy of SBH Views
+ News? More than 15,000 business owners
do receive it. It’s complimentary. Ad space
available too. Call Darlyn at 396-1724.
Visit our websites at: www.
smartbusinesshawaii.com, www.educate808.
com and www.sbhfoundation.org
Richard A. Coons, 73, former Managing
Partner of the Hawaii ofce of Deloitte & Touche
LLP, passed away at Queens Medical Center
on November 22, 2012.
In 2008 the Hawaii Society of Certied
Public Accountants named him to its rst
Legacy Hall of Fame. He was appointed
by the Chief Justice to four terms on the
Disciplinary Board of the Hawaii Supreme

Court. Most recently he served on the
Screening Committeeon the Kamehameha
Schools’ Board of Trustees.
Richard Coons was born in Oklahoma,
raised in Nebraska and California and was
a graduate of California State University at
Long Beach. He was a past president of
Historic Hawai’i Foundation, a member of
Rotary International, 200 Club, National Rie
Association, Aloha Shriners, Republican Party,
Outrigger Canoe Club, and Waialae Baptist
Church.
He is survived by his wife, Barbara
Marumoto-Coons, sons, Theodore L.
Coons and Charles R. Coons, step-children
Marshall T. Marumoto, Jay M. Marumoto,
M.D., Wendy Suite, Megan T. Marumoto,
M.D., one granddaughter and 7 step-
grandchildren.
Friends remember him as honest, rather
reserved, with a good sense of humor. He
enjoyed horseback riding, tennis, sailing, and
shing. Services were held at Waialae Baptist
Church December 15. Memorial donations
can be made to HUGS or Waialae Baptist
Church.
In Passing:
Richard A. Coons
JANUARY 2013 / SMALL BUSINESS NEWS / PAgE 3
SBH Sunrise Returns With

Dr. Patrick Sullivan
The monthly SBH Sunrise Networking Breakfast Forums return and will be
held every last Thursday of the month during 2013 (except December).
The rst SBH Sunrise Breakfast of the new year will
be held on Thursday, January 31, in the Pineapple Room
at Macy’s Ala Moana Center on the 3rd Floor from 7 – 8:30
am.
January’s special speaker is Dr. Patrick Sullivan,
CEO of Oceanit, a successful Hawaii based Aerospace,
Engineering Consulting, Information Systems and Life
Sciences high technology rm.
Sullivan will speak on, “How the technology industry
impacts Hawaii businesses”.
In addition to networking, introductions and special
announcements, the Sunrise features a full buffet breakfast,
program and free parking.
The forums are open to the public. Advance paid reservations are required.
The complete cost for SBH members and their guests remains $25 per person.
For non-members and those paying at the door—seats are limited— the cost is $35.
For details go to www.smartbusinesshawaii.com or call Darlyn at SBH, 396-1724,
or send in the reservation form on p. 11.

If you haven’t already done so, you should
make your reservations today to attend the
Smart Business Hawaii (SBH) 37th annual
Business and Investment Conference,
Wednesday, January 9, 2013. The Conference
will be held in the Ala Moana Hotel, Garden
Lanai and Hibiscus Ballroom. The event will
take place from 8 am to 1:30 pm.

The rst major business event of each
new year, the SBH Conference, is open to
the public. Advance reservations are required
(see form on page 4). Program, luncheon and
parking are included. Special reduced rates
for members and their guests are available.
Speakers will include well-known
business leaders: Aston’s Kelvin Bloom, Kitty
Lagareta (Communications Pacic) and Roy
Yamaguchi (Roy’s Restaurants); Best Selling
Hawaii Author, Bob Sigall, Honolulu Special
FBI Agent Tom Simon, and Freedom Works’
President Matt Kibbe. Special luncheon
speaker is former Governor, Ben Cayetano.
There will be a business exhibit area,
networking, and special events during the
Conference.
A detailed agenda is posted online (www.
smartbusinesshawaii.com) and printed on
page 4.
SBH to Hold its 37th Annual Business & Investment Conference
Matt Kibbe - Freedom Works
Former Governor Benjamin Cayetano
Keynote Speaker
The 27th State Legislature opens its
60-working day session on Wednesday,
January 16, 2013 at the State Capitol (10
am). The Session will run until the rst week
of May.
This is a budget year and the primary

business of the House and Senate will be
adoption of a more than $7 billion annual
budget for each of the next two years. A
separate Capital Improvements Budget
(CIP) will also be adopted. Taxes, fees and
regulations will be in the mix. Many proposals
will affect Hawaii business.
There are many new faces in the
Legislature, especially in the House which
now boasts 44 Democrats and 7 Republicans.
Maui’s Rep. Joe Souki wrested control as
Speaker from 13-year veteran Calvin Say. In
the Senate, 24 Democrats, 1 Republican are
involved with an expanded 17 committees.
Maui State Senator Shan S. Tsutsui has
once again been elected as the President of
the Senate.
Aaron Ling Johanson is the new House
Minority Leader, succeeding Gene Ward. Sam
Slom continues as Senate Minority Leader.
You can keep up to date on the status
of the estimated new 3,000 bills, business
legislation and hearing notices by checking the
legislative website, www.capitol.hawaii.gov,
the Senate Minority Blog, http://senateminority.
wordpress.com/, Hawaii Senate Watchdog
or by
calling Senator Slom’s ofce, 808-586-8420.
State Legislature
Convenes January 16

Reserve the Date: January 31 SBH Sunrise
37th Annual SBH Conference
Small Business 2013
Working for a Better Day
Wednesday, January 9, 2013
Ala Moana Hotel • 8:00 am to 2:00 pm
PAgE 4 / SMALL BUSINESS NEWS / JANUARY 2013
Wednesday, January 9, 2013 – Ala Moana Hotel • Hibiscus Ballroom – 8 a.m. – 2 p.m.
SMALL BUSINESS 2013:
“WORKING FOR A BETTER DAY”
featuring Benjamin J. Cayetano, Former Governor, State of Hawaii | Matt Kibbe, Freedom Works
ADVANCE PAID RESERVATIONS REQUIRED (See Below) – Parking Validated – Arrive by 6:45 am
Name ______________________________________________________________________________________
Firm Name ____________________________________________________ Phone_______________________
Address _______________________________________________City___________________ Zip___________
My Guest(s) ____________________________________________________Firm ________________________
Luncheon Menu: Beef
n or Vegetarian n
Enclosed is my check for $_________, for _________ (# of reservations)
@$75 for members and their guests • @$90 for Non-Members and at the door if space is available.
Full refunds until January 8, 2013. Make check payable to Small Business Hawaii and mail to:
Small Business Hawaii, Hawaii Kai Corporate Plaza, 6600 Kalanianaole Hwy., Suite 212, Honolulu, Hawaii 96825.
37th Annual Small Business
Hawaii Conference
The 37th Annual Smart Business Hawaii Conference
SMALL BUSINESS 2013:
“WORKING FOR A BETTER DAY”
Wednesday, January 9, 2013 • The ala Moana hoTel • hibiscus ballrooM
12 noon Luncheon and Program — Hibiscus Ballroom I & II
12:30 Luncheon Speech: “Ending Corruption in Hawaii”

Benjamin J. Cayetano, Former Governor, State of Hawaii
1:30 pm Adjournment Mahalo for attending!
SBH Leadership Circle Members/Sponsors Only
1:45 pm Private Meeting with
Matt Kibbe and Governor Benjamin Cayetano
CONFERENCE PROGRAM*
8:00 am Registration and Coffee – Garden Lanai
Network and Visit Business Exhibit Tables – Foyer
8:45 am Aloha and Welcome – “Working For A Better Day”
Sam Slom, President, Smart Business Hawaii (SBH)
9:00 am Outlook for Hawaiis Visitor Industry2013
Kelvin Bloom, Aston Hotels Hawaii
9:30 am Strategies for Hawaii’s Business Success 2013
Kitty Lagareta, Communications Pacic
Roy Yamaguchi, Roys Restaurants
Geal Talbert, UBS Financial, Moderator
10:15 – 10:30 am Brief Refreshment Break
Visit Business Exhibits (Foyer)
10:30 “Lessons from Hawaii’s Most Successful Companies”
Bob Sigall, Author, “The Companies We Keep”
11:00 am “Protecting Your Business from Embezzlement”
Tom Simon, Special Agent, Honolulu FBI
11:30 “How to Implement a Freedom Philosophy
Matt Kibbe, Freedom Works
* Program subject to change.
Matt Kibbe Benjamin Cayetano
JANUARY 2013 / SMALL BUSINESS NEWS / PAgE 5
Most Hawaii residents haven’t heard of the Jones Act, but one
Hawaii lawyer and several business owners say the 1920 federal
shipping law has a major negative impact on virtually ever resident

and business in the state, and they are challenging the law in U.S.
District Court.
John Carroll, an attorney and former state lawmaker, has led
a class action suit against the federal government on behalf of his
clients. They maintain the Jones Act violates the Commerce Clause by
restricting shipping between states to American-owned and manned
ships and thereby hurting businesses and residents by inating the
cost of goods.
The issue is hotly debated among Hawaii’s political elite, but
largely ignored by the general public.
Carroll and his plaintiffs – who include Patrick Novak, CEO of
The French Gourmet; Daniel Rocha, a farmer and rancher; Ken
Schoolland, a professor at Hawaii Pacic University, as well as William
Akina, Bjorn Arntzen and Philip Wilkerson — hope to educate the
public about the detriments of the Jones Act, which some experts
argue increases the cost of living in the islands by as much as one
third.
“The most important issue for me is the violation of the Commerce
Clause,” Carroll said. “The founding fathers fought the British and over
threw them based on imposition, without representation, of a tax on
tea. This law’s enforcement taxes everyone who purchases anything
in this state because of the excessive shipping costs, which seem to
be out of control.”
Carroll maintains the class action lawsuit should be considered as
Hawaii’s “revolution”… “to obtain economic freedom from monopolistic
domination of shippers who face no competitors.”
But Carroll and other opponents of the Jones Act have met with
powerful enemies who prefer to keep their control and prot.
Not surprisingly, the law has its advocates, including transportation
companies, unions and lawmakers who benefit from political

Federal Lawsuit: Jones Act Unconstitutional
By Malia Zimmerman, HawaiiReporter.com
contributions.
Hawaii’s congressional delegation,
with the exception of former Congressmen
Ed Case and Charles Djou, have been
beneciaries of substantial donations from
Jones Act supporters, including Hawaii’s
duopoly shipping companies Matson and
Horizon.
Carroll has spent a great deal of his
career trying to kill the federal legislation or
win Hawaii a special exemption, much like
the exemptions granted by the President
during natural disasters.
Three years ago, Carroll brought a
lawsuit against the Jones Act, but U.S.
District Judge David Ezra threw out the
case saying Carroll’s clients did not have
standing. Carroll said he’s learned from that
experience, and believes the new lawsuit
will address the issues that caused the
rst to fail.
Carroll said the impact of the Jones
Act is so severe, that the state of Hawaii is
denied access to about 90% of all available
shipping in the world. He also blames the Jones Act for destroying
Hawaii’s agricultural economy.
The lawsuit not only maintains the Jones Act violates the U.S.
Constitution but it also claims shippers that service the route from the

continental United States, Hawaii and Guam have a monopoly.
Matson brings in 67 percent of the goods to Hawaii while Horizon
Lines ships in 33 percent of the goods.
Photo by Melvin Ah Ching
PAgE 6 / SMALL BUSINESS NEWS / JANUARY 2013
Small BuSineSS newS
37 Years of
The Sun Sets on the Printed Edition • 1976 – 2013
This is the behind-the-scenes story in
the production of Small Business News.
For most of SB News’ existence I have
been the person behind the scenes, “The
Mysterious Mel” of type, photography, lay-
out and technology infamy.
I started work on the SB News in
the summer of 1985 when I was hired by
Paradise Printers to operate their comput-
erized Quadritek 2100 phototypesetting
machine made by the now defunct rm Itek
Infographics. The machine was for most
mortals, a very complex single function
computer that relied on a coding language
to get any meaningful work done. I learned
how to operate the Quadritek in college dur-
ing the late 1970s while working as editor
for the school newspaper.
My skills were badly needed at the
printing rm because they had just bought
the machine and picked up the Small Busi-
ness Hawaii account from which they would

produce and print the monthly newsletter.
It was through my employment at Paradise
Printers that rst put me in touch with Sam
Slom and Winnie Buckley, who was at
that time the publication’s main writer and
editor.
Both Sam and Winnie would hand over
pages of roughly typed sheets containing
stories for the next month’s SB News as
well as photos to be used in each is-
sue.
I laboriously typed the copy into the
Quadritek and started formatting the text
in the machine before the galleys were
run out, processed and manually cut and
pasted on to layout boards. The paste-up
proofs were then nalized by SBH and if
approved, sent to the printing press.
This process continued for a few years.
In late 1988 I left the printer and went
to an ad agency. They also needed a
typesetter, layout guy and somene who un-
derstood how to use the relatively new Ma-
By Melvin Ah Ching
Special to SBH
Continued on page 8.
SBH was and is still in the forefront on reporting business, tax and regulation issues. This sign
waving demonsration against a GE Tax increase has been a recurring issue over time.
Rock star Gene Simmons of KISS (top left) graced the cover
of the January 2008 edition of SB News after he was tapped

to be the keynote speaker at the 32nd Annual SBH Confer-
ence. The highly entreprenuerial Simmons turned his rock
star fame into a huge and successful worldwide enterprise.
Simmons posed for many photos on the day of the SBH
Conference as shown here with SBH Director Debi Halcro
and Winnie Chan, who was also an SBH Director at that time.
In 1996 Joyce & Bill Edwards (top right), founders of The
Systemcenter, Inc. were named the SBA Small Business
Persons of the Year and featured on the cover of the May is-
sue that year. The Edwards’ went on to receive many awards
in the ensuing years which were covered in the SB News.
Joyce was also a longtime board member of SBH.
SB News January 2008.
JANUARY 2013 / SMALL BUSINESS NEWS / PAgE 7
Lex Brodie of Lex Brodie’s Tire Company was
the founder of Small Business Hawaii which in
2009 became Smart Business Hawaii.
Jean Fukuda, a longtime SBH member and
director presented Honolulu Star-Bulletin car-
toonist Corky Trinidad an SBH Award at one
of the annual conferences in the 1990s. Both
Trinidad and Fukuda have since passed away
and today the SBH Civic Leadership Award
bears Jean Fukuda’s name.
Small Business Hawaii used to operate a member softball league which played weekly at Keehi
Lagoon Park during the mid to late 1980s. Announcements, pictures and results of the games
appeared in the monthly Small Business News.
Many people through the years have supported SBH with their time, talent and money. Among
them were former directors (L - R) Kenny Lum, Pamela Gottilieb, Richard O. Rowland who used
to write many columns for us, and cartoonist John Pritchett whose cartoons have graced these

pages with their timely commentary and humor.
The rst location of the SBH ofce was on the
2nd oor in this building on Cooke Street in
Kaka’ako, Honolulu.
This photo appeared on the cover of the May
1998 issue of Small Business News shortly af-
ter the legislature ended. That year a GE Tax
Increase bill proposal was defeated near the
end of that session. Throughout the publica-
tion of the Small Business News, members
were brought up to date on issues regard-
ing taxation, health care premiums, workers’
comp, unemployment insurance, rail, the Ha-
waii Superferry and more.
The Late Great Winnie Buckley of SBH.
SBH director Jack Schneider and his wife Mi-
chelle received the Jean Fukuda Civic Leader-
ship award from Wayne Fukuda in 2003.
PAgE 8 / SMALL BUSINESS NEWS / JANUARY 2013
By Ken Schoolland

SBH President, Sam Slom, was the rst
to recognize the publication potential for The
Adventures of Jonathan Gullible: A Free Market
Odyssey. Twenty-three years ago, before the
fall of the Iron Curtain, Sam offered to publish
a book to introduce free market ideas in Hawaii
schools. His ideas have never been embraced
in the islands, but this venture has now been
published in 71 editions in 47 languages

around the world.
Most recently
the tale has been
touring as a play
across Africa
with Adedayo
Thomas and
a cast of 30,
courtesy of
Students for
Liberty and the
Atlas Foundation
for Economic
Research. There are now more that 45 public
policy institutes and organizations worldwide
that have adopted the book for publication or
promotion in one manner or another
During my lecture circuit of 23 presenta-
tions at 16 institutions in 5 countries last
summer, the rst free market book in Vietnam
was launched, next to a bust of Ho Chi Minh.
The third Chinese edition was published in
Shanghai, the second Albanian edition was
published in Tirana, the second editions Dutch
and German are forthcoming along with a new
Hindi edition. The ninth English edition, hard
cover with full color illustrations, including the
narrated audio CD, is available on Amazon.
com.
Lastly, we are making progress toward

production and investment toward the
animated lm in Los Angeles. Those interested
in any phase of this project may contact me at
, or call 808-389-
1998.
How better to bring free markets to the
world than through education and media of
all types.
Mahalo to Sam for starting the ball rolling
and to Malia Zimmerman, Founder of Hawaii
Reporter, and Dick Rowland, President of
The Grassroot Institute Hawaii, for keeping it
going over the years.
Copies of Jonathan Gullible will be
available for sale at the upcoming 37th Annual
SBH Conference on January 9.
cintosh computer. While I was still employed
at the printers, I did learn a lot about the
Mac and how to make a publication on the
visually oriented and easier to use platform.
Print production moved from dedicated
typesetting computers and hand paste-up to
a totally digital process utilizing for the most
part the Apple Macintosh computer (there
were people in the industry who went to
the dark side and used PCs; but they don’t
count for this story).
It was during this time in the late 1980s
that Sam also adopted the Mac platform for
use in the SBH ofce. I purchased a Mac

of my own in 1988 which later allowed me
to integrate the SB News into Macintosh
production for pre-press work. While it was
doable, it was not totally without its quirks.
For a number of years production was
stuck between digital composition, hand
paste-up and in-house laser printing before
gradually transiting to a digital only print
process. Taking photos for the publication
also changed going from traditional 35mm
lm as late as 1999 to totally digital by the
end of 2003.
Sam and I had recurring “debates” over
issues involving the software and operating
systems between our Macs, starting with
System 6, moving to Systems 7, 8, 9 and
nally 10 (OSX), where we are today. We
started with Ready-Set-Go, spent many
years on PageMaker and are now with
Adobe InDesign.
Regardless of the technical issues,
members always received their Small
Business News in the mail, every month,
on time with updates, announcements and
commentaries on the latest business and
political news.
I learned a lot over that time produc-
cing and reading the Small Business News.
It helped shape me more into the scal
conservative “pake” that I am today.

As this paper edition of Small Business
News nally rolls off the press and into your
hands this month, rest assured that SBH
will continue to bring you the latest news,
announcements and commentary that is
worthy of your time and space on your digi-
tal device.
As we go to PDF only starting next
month, one thing is for certain. Small Busi-
ness News will go to a full color format with
the digital only editions. That means most, if
not all of the photos will be in color and that
design changes may also be forthcoming.
The digital edition of Small Business
News will be even more closely integrated
into our website, Sam’s weekly eBlast, as
well as our Facebook and Twitter social
media platforms. PDF can be viewed on all
types of computers including tablets and
phones running the Apple iOS and Google
Android systems.
In the not so distant future SBH can
look forward to the ePub format and maybe
even its own Android and iOS app.
SB News: From Paper to Digital
Contined from Page 6.
Jonathan Gullible: An SBH Phenomenon
Ken Schoolland and Nguyen Cong Minh with the Vietnamese edition of Jonathan Gullible.
JANUARY 2013 / SMALL BUSINESS NEWS / PAgE 9
IT’S YOUR MONEY

Hawaii Health Costs to Rise With Obamacare
SBH Membership
Can Help You!
One of the benets of membership in SBH is our business
referral service. Another is member discounts. Also, you can
contact SBH for answers to employment and other legal
questions. Finally, SBH is your business advocate at the
State Legislature, City Council and Public Agency hearings.
Please join today. Call 808
396-1724 for details
or send in the membership form on page 11.
By Lowell Kalapa, President, Tax Foundation of Hawaii
Last month we talked about the
possible tax increases that might occur as
a result of the “scal cliff” if the lame duck
Congress does nothing; however, what
readers should know is that some taxes
are already scheduled to rise as a result
of the Patient Protection and Affordable
Care Act (PPACA).
While much of the public awareness
around this precedent setting legislation
focuses on mandatory health care
insurance, there are serious tax implications
in the measure that will go into effect next year. Last week we mentioned
that high income earners ($200,000/$250,000) with dividend and capital
gains taxes will be hit with an additional 3.8% tax on that income to
fund Medicare. In addition, these taxpayers will see their share of the
Medicare tax on their wages rise by 0.9% which when added to the
current 1.45% paid by all wage earners will make that tax rate 2.35%.

While the employers share for Medicare on these high-wage
earners will remain at 1.45%, the combined tax rate will rise to 3.8%
which is the same rate these taxpayers will pay on dividend and capital
gains income. This tax increase is expected to raise $317 billion over
the next ten years.
Another new tax will hit manufacturers of medical devices with
a tax equivalent to 2.3% of their gross sales. It is estimated that this
tax will raise more than $29 billion over the next ten years. Of course,
those manufacturers will pass the cost of the tax on to their customers,
increasing the cost of medical care.
Those taxpayers with Flexible Spending Accounts will be limited
to an annual contribution cap of $2,500 with which to cover out-of-
pocket medical expenses. Currently there is no limitation on pre-tax
contributions to Flexible Spending Accounts used for medical expenses.
It is estimated that this will raise $24 billion over the next ten years.
One tax increase won’t come in the form of a new tax or a rate
increase but it will come in the form of a higher threshold for the
itemized deductions that taxpayers can take for medical expenses
made during the tax year. All taxpayers can currently deduct any
medical expenses they made during the tax year as long as they are
in excess of 7.5% of their adjusted gross income. Under the Patient
Protection and Affordable Care Act, that threshold will rise to 10%.
In other words, taxpayers will be able to deduct only those expenses
that exceed 10% of their adjusted gross income. It is expected that
his change will raise another $19 billion over the next ten years.
Finally, on January 1, 2013 the amount that a health insurance
company can deduct for compensation paid to its executives and
directors will be substantially reduced. While it doesn’t sound like
much, it is estimated that this change will raise $800 million over the
next ten years.

Some other changes adopted under this legislation have already
gone into effect such as increased penalties for unqualied withdrawals
from Health Savings Accounts (HSA) and Archer Medical Savings
accounts (MSA). An interesting provision that levies a 10% excise tax
on tanning bed services went into effect on July 1, 2010. An annual
fee on drug manufacturers went into effect in 2011.
But that is not the end of the taxes and fees adopted under the
Patient Protection and Affordable Care Act. A new annual fee on
health insurers will kick in beginning in 2014 as well as a 40% tax on
expensive health plans that will go into effect in 2018.
The fact that all of these tax increases have been adopted and will
go into effect come January 1, 2013 makes the scal cliff even more
frightening. Will the nation be able to withstand even more taxes on
top of those that will come with “Obamacare?” While many of these
tax increases are “hidden” from the general public, they, nonetheless,
will add to the cost of living for all taxpayers.
That is why it is so important that taxpayers understand the gravity
of what faces the lame duck Congress in the next few weeks. While
everyone seems to agree that it cannot be all spending cuts or all tax
increases, policymakers need to be sensitive to the burden already
borne by Americans - individuals, families, and businesses. And if
policymakers think that they can just make the wealthy taxpayers
pick up the tab, they should remember that those who have those
resources can also choose where to invest their “riches.”
No one will come out of this crisis unscathed. Taxpayers need to
realize that someone has to pay for the programs and services the
federal government has grown over the years. Now is the opportune
time to rethink how much federal government we really need and for
which we are willing to pay.
More on the web:

PAgE 10 / SMALL BUSINESS NEWS / JANUARY 2013
Be sure to check these websites for up to date Hawaii business
information and events:
Smart Business Hawaii

Small Business Hawaii Entrepreneurial Education Foundation

Educate 808 – Education Transparency Portal

Hawaii Reporter •
Find Business News & Information Online.
The following was written by celebrity, comedian, author Ben Stein
and recited by him on a recent CBS Sunday Morning commentary.
My confession: I don’t like getting pushed around for being a
Jew, and I don’t think Christians like getting pushed around for being
Christians. I think people who believe in God are sick and tired of
getting pushed around, period. I have no idea where the concept
came from, that America is an explicitly atheist country. I can’t nd it
in the Constitution and I don’t like it being shoved down my throat
Or maybe I can put it another way: where did the idea come from
that we should worship celebrities and we aren’t allowed to worship
God as we understand Him? I guess that’s a sign that I’m getting old,
too. But there are a lot of us who are wondering where these celebrities
came from and where the America we knew went to.
In light of the many jokes we send to one another for a laugh,
this is a little different: This is not intended to be a joke; it’s not funny,
it’s intended to get you thinking.
In light of recent events, terrorists attack, school shootings, etc. I
think it started when Madeleine Murray O’Hare (she was murdered,
her body found a few years ago) complained she didn’t want prayer

in our schools, and we said OK. Then someone said you better not
read the Bible in school The Bible says “thou shalt not kill; thou shalt
not steal, and love your neighbor as yourself”. And we said OK.
Then Dr. Benjamin Spock said we shouldn’t spank our children
when they misbehave, because their little personalities would be warped
and we might damage their self-esteem (Dr. Spock’s son committed
suicide). We said an expert should know what he’s talking about. And
we said okay.
Now we’re asking ourselves why our children have no conscience,
The Way Things Have Become
why they don’t know right from wrong, and why it doesn’t bother them
to kill strangers, their classmates, and themselves.
Probably, if we think about it long and hard enough, we can gure
it out. I think it has a great deal to do with “we reap what we sow.”
Funny how simple it is for people to trash God and then wonder why
the world’s going to hell. Funny how we believe what the newspapers
say, but question what the Bible says. Funny how you can send ‘jokes’
through e-mail and they spread like wildre, but when you start sending
messages regarding the Lord, people think twice about sharing. Funny
how lewd, crude, vulgar and obscene articles pass freely through
cyberspace, but public discussion of God is suppressed in the school
and workplace.
Are you laughing yet?
Funny how when you forward this message, you will not send it to
many on your address list because you’re not sure what they believe,
or what they will think of you for sending it.
Funny how we can be more worried about what other people
think of us than what God thinks of us.
My Best Regards, Honestly and respectfully, Ben Stein

great quotations
“In the modern world of business, it is useless to be a creative origi-
nal thinker unless you can also sell what you create. Management
cannot be expected to recognize a good idea unless it is presented
to them by a good salesman.”
— David M. Ogilvy
JANUARY 2013 / SMALL BUSINESS NEWS / PAgE 11
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Thursday, January 31, 2013 • 7:00 – 8:30 a.m.
Pineapple Room, Ala Moana • Breakfast / Free Parking
Dr. Patrick Sullivan, Chairman & Founder — Oceanit
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SIFE is now
Enactus
Hawaii Pacic University’s success-
ful Free Enterprise SIFE organization has
undergone a name change, according to
club leader, Pitchanun Wittayanont (aka,
“Foily”). SIFE has participated nationally
and locally in free market programming,
education, and debates. Professor Ken

Schoolland is the mentor for the organi-
zation.
The new name is Encatus. Foily ex-
plains the name comes from en+act+us:
Entrepreneurial — having the per-
spective to see an opportunity and the tal-
ent to create value from that opportunity;
Action — the willingness to do
something and the commitment to see
it through even when the outcome is not
guaranteed;
Us — a group of people who see
themselves connected in some important
way; individuals that are part of a greater
whole.
The change is systemwide as reect-
ed in SIFE’s new identity and presence,
now known as Enactus. They’re online
at Best of luck to the
student members in Enactus!
SMALL BUSINESS NEWS
January 2013
6600 Kalanianaole Hwy., Suite 212
Honolulu, Hawaii 96825
Phone 396-1SBH (1724)
www.smartbusinesshawaii.com
SBH Sunrise — November 29, 2012: Some of the attendees at the last Sunrise breakfast in 2012 pose with
speaker Tyler Roukema (3rd from left) of Outback Steakhouse, Hawaii Kai. They include from L-R SBH
President Sam Slom, HPU students Pitchanun Wittayanont, Martin Tobrey and their professor Ken Schol-
land, author of the Jonathan Gullible series of books.

Last SBH Sunrise
of 2012
Bob Frost re-introduces himself at
the SBH Sunrise on November 29.
* On the front page the Happy Sun-
rise people are Winners’ Camp fans
of Tyler Roukema. They are from left
to right: Niki Whitehouse, Delorese
Gregoire, Tyler, Kalei Lam, Dianne
Lam, and Bryce Harken standing in
the center, back row.
Don’t miss the rst SBH Sunrise
breakfast on January 31 which fea-
tures Dr. Patrick Sullivan of the tech
rm Oceanit. Reservation form is on
page 11 or you can call SBH at 396-
1724 today.