This bill is premised on three mistaken ideas.  First, we can raise taxes on REITs and it will have no effect on their investment behavior.  Investment capital is allocated to where it receives the highest return.  If you reduce the return, the amount of investment will decline.  The developer of the Ka Makana Alii shopping center has already testified that they will cancel phase 2 of the project if this bill passes.  That would be a loss of more than $300 million.  Second, that we have all the investment capital we need.  If that was true, why do we have a critical shortage of affordable housing?  Where was the capital to renovate Beachwalk and the International Marketplace until REITs stepped in?  What did Ala Moana Shopping Center look like before a REIT bought it?  Third, it's not fair that REITs aren't paying income taxes.  REIT investment has created thousands of jobs and generated additional tax revenue that far exceeds the revenue lost to non-resident REIT shareholders.