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+--- Thread: state income tax "reform" (/showthread.php?tid=18083)
state income tax "reform" - kalakoa - 02-16-2017
http://www.hawaiitribune-herald.com/news/local-news/counties-could-lose-hotel-subsidy-house-bill-cuts-income-taxes-advances
State thinks income taxes are too high, and need to be lowered, which shortfall can be made up by keeping the "neighbor islands' share" of the TAT revenue, justified by the "many services" State provides.
Counties can obviously make up the difference by raising the property tax (which is already 70% of their revenue).
I agree that some "reform" is necessary, but really think the changes need to be about giving the counties more taxation authority. Example: why does a Big Island visitor pay TAT to the State? TAT should really stay on the island where it is collected, with counties able to set their own rate as they see fit...
RE: state income tax "reform" - PaulW - 02-16-2017
"Counties can obviously make up the difference by raising the property tax (which is already 70% of their revenue)."
Is that really the case?! Strange they don't raise it more often, it's relatively low here.
RE: state income tax "reform" - kalakoa - 02-16-2017
Strange they don't raise it more often
Too much political pressure from both ends: the poor can't afford it, the wealthy (including: resorts) don't want to pay it.
RE: state income tax "reform" - Chunkster - 02-16-2017
According to Turbotax, Hawaii has the seventh highest average state income tax rate at 8.25%. That is averaged across 12 brackets, the largest number for any state. As someone who has volunteered to assist seniors and low income folks with their taxes in three different states, I can tell you that Hawaii charges income tax at lower income levels than either of the other two where I have done this. It is quite common for families here to owe no Federal tax (or even get an Earned Income Credit subsidy payment) and still owe the state. While it is usually not much, anything at some of these income levels seems like a lot.
Our real estate taxes are among the lowest, however, and as noted on other threads, Hawaii is in the middle of the pack in terms of overall state and local taxation. Our unique system of complete state funding of public schools skews the real estate tax downward and the income tax upward.
Of course, our taxes would be significantly higher without the impact of tourist paid state revenue.
RE: state income tax "reform" - ckg - 02-16-2017
quote:
Originally posted by kalakoa
Strange they don't raise it more often
Too much political pressure from both ends: the poor can't afford it, the wealthy (including: resorts) don't want to pay it.
Just to add, the deal in Hawaii is that the real wealth is land so of course property taxes are low (to protect big land owners who certainly at least heavily influence state and local government). Income tax not quite so high on the protection list since regular folks pay it. It does not appear that resorts are getting quite the break you may think. Check this out from Maui. http://www.co.maui.hi.us/DocumentCenter/View/104050
I recall back in the day timeshare was heavily screwed and still apparently is. Non voting/non local folks that can be taxed I am sure sounds great to local and state politicians.
RE: state income tax "reform" - geochem - 02-17-2017
quote:
Originally posted by ckg
Non voting/non local folks that can be taxed I am sure sounds great to local and state politicians.
Given Hawaii's dismal voter turnout, the "non-voting" applies to a considerable majority of local folks... entirely to their loss. Not that that's at all accidental on the part of our local power structure.
(apologies for the hijack snark...)
RE: state income tax "reform" - kalakoa - 02-17-2017
does not appear that resorts are getting quite the break you may think
Not so much "getting a break" as "can afford to 'represent' themselves at the capitol".
Hawaii's dismal voter turnout
More accurate to suggest Ige was "installed", at which point voter turnout hardly matters.
RE: state income tax "reform" - HereOnThePrimalEdge - 02-17-2017
More accurate to suggest Ige was "installed"
Yes, that's apt.
Like an appliance or a utility, but without a way to reach customer service.
Even though it never worked properly from the get-go.
No child will ever again doubt they could grow up and someday become president of the United States
RE: state income tax "reform" - terracore - 02-17-2017
Legalize and tax gambling and a few of the other big-ticket items funding our criminals and many problems will be solved at once.