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+--- Thread: Hawaii Senate approves nation’s highest income tax (/showthread.php?tid=22220)
Hawaii Senate approves nation’s highest income tax - terracore - 03-17-2021
https://www.staradvertiser.com/2021/03/10/hawaii-news/hawaii-senate-approves-nations-highest-income-tax-2/
A bill that would increase Hawaii’s income tax to the highest in the nation for the state’s top earners passed the full Senate on Tuesday by a near-unanimous vote.
Senate Bill 56 was approved 24-1. Sen. Gil Riviere (D, Heeia-Laie-Waialua) was the lone no vote, while Sen. Les Ihara (D, Moiliili-Kaimuki-Palolo) voted yes but with reservations. The proposed legislation will now move to the House of Representatives, where it will likely face resistance.
The proposed legislation would impose a 16% tax on individuals earning more than $200,000 a year, heads of households earning more than $300,000 and joint filers earning more than $400,000. The income brackets are currently taxed at 11%.
If the bill ultimately passes, Hawaii will overtake California as the state with the highest income tax. California’s rate is 13.3% on those earning more than $1 million.
The measure also includes increases to the capital gains tax, corporate tax and taxes on high-end real estate sales.
The bill cites the state’s plummeting tax collections brought about by the coronavirus pandemic as the rationale for the tax increases. By the end of last year, Hawaii officials were estimating the state would have a budget shortfall in excess of $2 billion. The tax increases would expire after 2027.
The measure has attracted support from local unions for government workers, including teachers, social service organizations and progressive public-policy organizations worried about furloughs of government workers and possible cuts to programs such as AIDS services and housing assistance for the poor.
“It makes sense to ask those who are fortunate enough to be doing well in this economy to pay more, in order to close the deficit without slashing the critical government services that so many struggling working families have come to rely on,” wrote Nicole Woo, director of research and economic policy for the Hawaii Children’s Action Network Speaks! — a nonprofit that advocates for children and families — in testimony supporting the proposed tax hikes.
However, a federal aid package is expected to largely plug the state’s budget hole. The American Rescue Plan Act, which is poised to pass Congress, would provide Hawaii with more than $6.1 billion in funding. The package includes an estimated $1.6 billion to bolster the state’s budget.
The proposed tax increases have attracted opposition from the business sector. The Hawaii Chamber of Commerce said if the measure passes it will “reinforce the image that Hawaii is a poor place to live, work and invest” and “undermine efforts made to turn Hawaii’s economy around.”
The Tax Foundation of Hawaii warned that income tax hikes would ultimately put a drag on Hawaii’s economy.
RE: Hawaii Senate approves nation’s highest income tax - kalakoa - 03-17-2021
1. If they want me to pay more, they need to provide better service -- and I don't mean "roads".
2. People making $200K/year can easily redefine their "residence". I don't make anywhere near that much but I'm already putting together a Delaware corporation to keep most of my earnings out-of-state.
3. Notice how everything is about bailouts and tax increases, never cuts or furloughs. Must be nice work if you can get it, I hear it even includes vaccination.
4. The tax increase is "as good as dead". Favorite part: it was "encumbered" by a "procedural gambit", so there will never be any actual "debate" that might reflect "the will of the people".
https://www.civilbeat.org/2021/03/the-hike-in-state-income-taxes-on-top-earners-is-as-good-as-dead/
RE: Hawaii Senate approves nation’s highest income tax - terracore - 03-18-2021
"Notice how everything is about bailouts and tax increases, never cuts or furloughs"
There should be drastic common sense efficiencies and cuts in government. Unfortunately, government only grows in size, it never shrinks. In less than 200 years "We the people..." was completely lost.
"I'm already putting together a Delaware corporation to keep most of my earnings out-of-state"
An excellent idea. I'm taking a different approach by planning to eliminate any taxable earnings. They will still nail me on property taxes and GET but let's face it, the federal budget deficit last year was 4.5 trillion dollars. Paying taxes only serves to put downward pressure on inflation when most of the budget is borrowed into existence, and real inflation is launching like a rocket.
RE: Hawaii Senate approves nation’s highest income tax - kalakoa - 03-18-2021
They will still nail me on property taxes and GET
Take advantage of the "dedicated ag use" scam used by Shipman and other large landowners.
GET only applies to real transactions, we just need more barter and direct sales.
A larger fight that I would pay to see: TAT should stay on the island where it's collected instead of disappearing into the State government -- they stopped sharing it "because the pandemic" and our island will never see that money again.
RE: Hawaii Senate approves nation’s highest income tax - eightfingers2.0 - 03-18-2021
So will they roll all that back once the economy is back to normal?
Didn’t think so either....
RE: Hawaii Senate approves nation’s highest income tax - leilanidude - 03-18-2021
One hand of the state has been trying to lure high-earners to Hawaii and these clowns are trying to ensure that high-earners leave or never come here to begin with...
RE: Hawaii Senate approves nation’s highest income tax - Kaimana - 03-20-2021
(03-17-2021, 09:07 PM)kalakoa Wrote: 2. People making $200K/year can easily redefine their "residence". I don't make anywhere near that much but I'm already putting together a Delaware corporation to keep most of my earnings out-of-state.
So you're going to avoid paying state taxes even though this tax hike wouldn't affect you? Seems like you should probably just move to a state with lower taxes or one that meets your standards.
RE: Hawaii Senate approves nation’s highest income tax - kalakoa - 03-20-2021
you're going to avoid paying state taxes even though this tax hike wouldn't affect you?
State/County lack any fiscal responsibility; tax increases are inevitable, and they will affect everyone whether directly or indirectly. Better to be prepared than scramble for a strategy at the last minute.
RE: Hawaii Senate approves nation’s highest income tax - HereOnThePrimalEdge - 03-20-2021
a Delaware corporation to keep most of my earnings out-of-state.
Sounds like an opportunity for an enterprising young attorney, setting up Delaware based corps. That might get the government’s attention too, and make them more accountable to taxpayers?
Ha, ha, just joking. They’re more likely to outlaw Delaware corporations for Hawaii businesses instead.
RE: Hawaii Senate approves nation’s highest income tax - Kaimana - 03-20-2021
(03-20-2021, 01:54 AM)kalakoa Wrote: you're going to avoid paying state taxes even though this tax hike wouldn't affect you?
State/County lack any fiscal responsibility; tax increases are inevitable, and they will affect everyone whether directly or indirectly. Better to be prepared than scramble for a strategy at the last minute.
Probably should move to somewhere that is fiscally responsible then instead of basically stealing while everyone else pays taxes.