06-05-2014, 09:59 AM
A vote for Abercrombie, and Schatz, will be a vote to raise your taxes
eventually to the point of impoverishing those people who are already struggling to make ends meet.
In addition you will find a host of new regulations all designed to extract more of your hard earned money and alignment with UN REGULATIONS
http://www.civilbeat.com/2011/02/8563-ho...-cost-you/
Gov. Neil Abercrombie‘s proposed tax increases will take a bite ranging from barely more than $100 for a welfare recipient to thousands for a state government retiree, a Civil Beat investigation has determined.
Abercrombie in his State of the State speech proposed a combination of tax increases, new fees and cuts to government services.
Civil Beat examined the impacts of the five direct tax and fee increases, as well as the increase in out-of-pocket expenses for state retirees, that have been proposed by the governor to address the state’s budget shortfall.
We looked at the potential financial impacts on a sampling of Hawaii residents and found:
•For a single young professional in the private sector: a minimum of an extra $242.
•For a state employee: a minimum of an extra $247.
•For a state retiree: a minimum of an extra $3,894.
•For a welfare recipient: a minimum of an extra $123.
These are the financial proposals considered for this story with links to the legislative bills that explain them in more detail:
Alcohol Tax: Increasing Hawaii’s six alcohol taxes by 50 percent. Expected to generate an extra $20 million annually.
Soda Tax: A new “sugary beverage” fee of 10 cents for containers 12 ounces or less, and 25 cents for anything bigger manufactured in or imported into Hawaii. Expected to generate $50 million annually.
Vehicle Taxes: A $20 increase of the flat-rate vehicle registration fee, from $25 to $45. Doubling the vehicle weight tax, which currently ranges from .75 cents ($0.0075) to 2.75 cents ($0.0275) per pound. The registration fee would raise an extra $20.6 million. The weight tax increase would generate an addition $33 million.
State Income Tax Deduction: Eliminating deduction for state income taxes paid. Expected to raise $99 million in fiscal 2012.
Pension Tax: Taxing pension income for retirees who earn more than $37,500. Expected to generate about $30 million annually starting in 2013.
Repeal of Medicare Refunds: Eliminating reimbursement of Medicare Part B for state retirees. The move is expected to save the state $42 million a year.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
Young Professional#61466;
There are about 436,400 Hawaii residents between the ages of 21 and 45. Here’s how a single person would be impacted.
Alcohol Tax#61466;
Alcohol taxes will go up noticeably assuming two things: One, that Hawaii residents drink as much as their national counterparts. And two, that the wholesale tax is passed on to the consumer without any additions or savings.
The amounts would break down as follows:
•Wine: $4 in annual taxes. That compares to the $2.76 paid at the current rate, assuming the average American drinks 2 gallons of wine a year (which comes out to a little more than four glasses a month).
•Beer: $32 in annual taxes. That compares to the $21 paid at the current rate, assuming the average American drinks 23 gallons of beer a year (which comes out to about 20 12-ounces bottles a month).
•Liquor: $9 in annual taxes. That compares to the $6 paid at the current rate, assuming the average American drinks a gallon of hard liquor a year (which comes out to about seven shots a month).
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
Soda drinkers can expect to pay more for their sugar fix. The amount of sugar that qualifies a beverage as sugary still hasn’t been defined. The bill’s current language says a “sugary beverage” is “any soda, juice or other non-alcoholic beverage that is sold in separate deposit beverage containers and the contents of which contain more than __ percent sugar, including sweetened water, soda, sports drinks, energy drinks, colas, sweetened coffee or tea, and fruit or vegetable drinks containing less than 70 percent natural fruit or vegetable juice.”
Given that the average American consumes 50 gallons of soda and other sweetened beverages a year, that fee could add up to a minimum of $53, based on 50 gallons amounting to 533 12-ounce cans. But for consumers who drink those 50 gallons via an even mix of 12-ounce cans and larger cans (such as the 16-ounce Monster Energy Drink cans), the fees would add up to about $77 a year.
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
Drivers are in for increased costs under proposals to double the state’s vehicle weight tax and raise registration fees by 80 percent. Owners of heavier vehicles would pay more, lighter vehicles less. These would come on top of vehicle fees also collected by the counties.
Here’s a breakdown of the charges for a car that weighs 3,500 pounds (such as the Toyota Camry), which the bill says is the average for the state:
•State weight tax ($0.0175 per pound): $61.25
•State registration fee: $45
•Honolulu county weight tax ($0.05 per pound): $175
•Honolulu registration fee: $20
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
State Income Tax Deduction#61466;
A repeal of the deduction for state income taxes paid would essentially increase the amount of income subject to tax.
According to the bill, deductions for those earning $75,000 or less would be phased out by 50 percent this year, by 75 percent next year, then completely for tax years after Dec. 31, 2012. For those who earn more than $75,000, the deductions would be eliminated this year.
The standard deduction is a dollar amount that reduces the amount of income on which you are taxed. (Taxpayers can itemize their deductions if they are greater than their allowable standard deduction.) Under the current tax code, standard deduction amounts in Hawaii are:
•Single: $1,500
•Married filing separate: $950
•Married filing jointly: $1,900
•Head of household: $1,650
That means the taxable income for someone filing as a single person who earns the state’s average wage would be $43,000, instead of $41,500. The state Tax Department’s tax table online shows a difference of $119 in taxes between the two incomes.
New: $2,821 | Current: $2,702
The bottom line: The average worker earning $43,000 (the state’s mean annual wage) would pay an extra $119 in income taxes.
Total impact of Abercrombie’s proposed tax hikes: A single private-sector worker earning the mean wage of $43,000 would likely pay a minimum of an extra $242.25.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
State Employee#61466;
The state has some 50,000 employees on its payroll, including the University of Hawaii and Department of Education.
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to the way they affect the young professional above. But the proposed repeal of the income tax deduction would affect state employees differently. That’s because the average state employee earns a higher average salary than the state as a whole.
On top of the proposed tax increases, state employees could be facing pay cuts and increases in health premiums by yet to be determined amounts.
Abercrombie has said he will seek a 5 percent reduction in public employee labor costs, which is the equivalent of one furlough day a month. It’s expected to save $88 million. The move would have to be negotiated with public labor unions. He’s also talked about reducing the state’s share of payments to the Hawaii Employer-Union Health Benefits Trust Fund. But there are no specifics on how employees will be affected.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
State Income Tax Deduction#61466;
For state employees covered by collective bargaining agreements, only salary ranges are made public under the state’s open records law. Including the low end of these ranges, the average salary of public employees is $44,375. Including the high end of these ranges, the average salary is $65,092.
Under Abercrombie’s proposal, the taxable income for a state employee filing as a single person who earns the higher end of state government’s average wage would be $65,092, instead of $63,592. The state Tax Department’s tax table shows a difference of $124 in taxes between the two incomes.
New: $4,623 | Current: $4,499
The bottom line: The average state government worker earning $65,092 would pay an extra $124 in income taxes.
Total Impact of Abercrombie’s proposed tax hikes: A single state worker earning the average wage of $65,092 would pay a minimum of an extra $247.25.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
State Retiree#61466;
Approximately 38,900 public retirees receive health and pension benefits from the state. The earliest state employees can retire is at age 55 to receive pension benefits.
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to private-sector and state employees. But Abercrombie’s proposals to tax pensions and do away with Medicare reimbursements would specifically hit retirees.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
Taxing Pensions#61466;
Pensions would no longer be tax-free at the state level. But Abercrombie has said those who are most dependent on their pensions would be exempt. Only pensions above $37,500 would be taxed. About 7,000 pensioners earn more than that amount, according to the Employees’ Retirement System.
That would include the pension of a public elementary-school teacher who earned up to $79,170 — the highest possible — and retired after 30 years of service. That teacher would receive a monthly pension of $2,474, based on the retirement benefits calculator on the Hawaii Employees’ Retirement System website. Add that to the average Social Security income ($1,007 a month), and the teacher’s pension would total $41,800.
State income tax on $41,800 would total $2,726, according to the Hawaii Tax Department’s tax table.
Another scenario: If for some reason a state retiree didn’t qualify to receive Social Security benefits, she would have had to earn at least $100,000 salary to receive a $37,500 pension, the minimum to qualify to be taxed. Income tax on that pension would total $2,386.
The bottom line: A private-sector retiree receiving a $37,500 pension income would owe $2,386 in state income taxes. The figure would go up depending on the size of the pension.
New: $2,386 | Current: $0
Repeal of Medicare Refunds#61466;
While this isn’t a tax increase, it would represent an increase in out-of-pocket costs to state retirees. Hawaii state government retirees are required by state law when reaching age 65 to enroll in the Medicare Part B program if they are covered under the Hawaii Employer-Union Health Benefits Trust Fund.
Medicare Part B is a federal program that pays for doctors’ fees and outpatient medical expenses. The monthly premium for 2011 is set at $115.40 (up $19 from 2010), which is deducted from a retiree’s Social Security or pension. The state currently reimburses retirees for this cost on a quarterly basis in March, June, September and December.
The bottom line: Eliminating state-funded Medicare Part B reimbursements would mean the average state retiree will have to cover the $1,385 annual cost.
New: $1,385 | Current: $0
Total Impact of Abercrombie’s proposed tax hikes: A single state retiree earning a pension of $37,500 would pay a minimum of an extra $3,894.25.
A private sector retiree earning the same pension would likely pay an additional $2,509.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
Welfare Recipient#61466;
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to others above. But Abercrombie’s proposals to cut social services would hit Hawaii’s neediest residents.
Those living below the poverty level will likely see a drop in services under mandated cuts to the state Department of Human Services. Abercrombie has asked that the department cut its Medicaid program by $37.5 million and its Temporary Assistance for Needy Families (TANF) program by $29.5 million.
A total of 267,000 residents, or almost one out of five Hawaii residents, receive Medicaid benefits. And about 9,450 families receive TANF cash benefits monthly.
TANF is intended to support low-income working families through monthly cash benefits for food, clothing, shelter and other essentials. The average TANF check is $538, according to the department.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
Total Impact of Abercrombie’s proposed tax hikes: A resident living below the poverty level could pay a minimum of an extra $123.25.
Gov. Neil Abercrombie‘s proposed tax increases will take a bite ranging from barely more than $100 for a welfare recipient to thousands for a state government retiree, a Civil Beat investigation has determined.
Abercrombie in his State of the State speech proposed a combination of tax increases, new fees and cuts to government services.
Civil Beat examined the impacts of the five direct tax and fee increases, as well as the increase in out-of-pocket expenses for state retirees, that have been proposed by the governor to address the state’s budget shortfall.
We looked at the potential financial impacts on a sampling of Hawaii residents and found:
•For a single young professional in the private sector: a minimum of an extra $242.
•For a state employee: a minimum of an extra $247.
•For a state retiree: a minimum of an extra $3,894.
•For a welfare recipient: a minimum of an extra $123.
These are the financial proposals considered for this story with links to the legislative bills that explain them in more detail:
Alcohol Tax: Increasing Hawaii’s six alcohol taxes by 50 percent. Expected to generate an extra $20 million annually.
Soda Tax: A new “sugary beverage” fee of 10 cents for containers 12 ounces or less, and 25 cents for anything bigger manufactured in or imported into Hawaii. Expected to generate $50 million annually.
Vehicle Taxes: A $20 increase of the flat-rate vehicle registration fee, from $25 to $45. Doubling the vehicle weight tax, which currently ranges from .75 cents ($0.0075) to 2.75 cents ($0.0275) per pound. The registration fee would raise an extra $20.6 million. The weight tax increase would generate an addition $33 million.
State Income Tax Deduction: Eliminating deduction for state income taxes paid. Expected to raise $99 million in fiscal 2012.
Pension Tax: Taxing pension income for retirees who earn more than $37,500. Expected to generate about $30 million annually starting in 2013.
Repeal of Medicare Refunds: Eliminating reimbursement of Medicare Part B for state retirees. The move is expected to save the state $42 million a year.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
Young Professional#61466;
There are about 436,400 Hawaii residents between the ages of 21 and 45. Here’s how a single person would be impacted.
Alcohol Tax#61466;
Alcohol taxes will go up noticeably assuming two things: One, that Hawaii residents drink as much as their national counterparts. And two, that the wholesale tax is passed on to the consumer without any additions or savings.
The amounts would break down as follows:
•Wine: $4 in annual taxes. That compares to the $2.76 paid at the current rate, assuming the average American drinks 2 gallons of wine a year (which comes out to a little more than four glasses a month).
•Beer: $32 in annual taxes. That compares to the $21 paid at the current rate, assuming the average American drinks 23 gallons of beer a year (which comes out to about 20 12-ounces bottles a month).
•Liquor: $9 in annual taxes. That compares to the $6 paid at the current rate, assuming the average American drinks a gallon of hard liquor a year (which comes out to about seven shots a month).
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
Soda drinkers can expect to pay more for their sugar fix. The amount of sugar that qualifies a beverage as sugary still hasn’t been defined. The bill’s current language says a “sugary beverage” is “any soda, juice or other non-alcoholic beverage that is sold in separate deposit beverage containers and the contents of which contain more than __ percent sugar, including sweetened water, soda, sports drinks, energy drinks, colas, sweetened coffee or tea, and fruit or vegetable drinks containing less than 70 percent natural fruit or vegetable juice.”
Given that the average American consumes 50 gallons of soda and other sweetened beverages a year, that fee could add up to a minimum of $53, based on 50 gallons amounting to 533 12-ounce cans. But for consumers who drink those 50 gallons via an even mix of 12-ounce cans and larger cans (such as the 16-ounce Monster Energy Drink cans), the fees would add up to about $77 a year.
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
Drivers are in for increased costs under proposals to double the state’s vehicle weight tax and raise registration fees by 80 percent. Owners of heavier vehicles would pay more, lighter vehicles less. These would come on top of vehicle fees also collected by the counties.
Here’s a breakdown of the charges for a car that weighs 3,500 pounds (such as the Toyota Camry), which the bill says is the average for the state:
•State weight tax ($0.0175 per pound): $61.25
•State registration fee: $45
•Honolulu county weight tax ($0.05 per pound): $175
•Honolulu registration fee: $20
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
State Income Tax Deduction#61466;
A repeal of the deduction for state income taxes paid would essentially increase the amount of income subject to tax.
According to the bill, deductions for those earning $75,000 or less would be phased out by 50 percent this year, by 75 percent next year, then completely for tax years after Dec. 31, 2012. For those who earn more than $75,000, the deductions would be eliminated this year.
The standard deduction is a dollar amount that reduces the amount of income on which you are taxed. (Taxpayers can itemize their deductions if they are greater than their allowable standard deduction.) Under the current tax code, standard deduction amounts in Hawaii are:
•Single: $1,500
•Married filing separate: $950
•Married filing jointly: $1,900
•Head of household: $1,650
That means the taxable income for someone filing as a single person who earns the state’s average wage would be $43,000, instead of $41,500. The state Tax Department’s tax table online shows a difference of $119 in taxes between the two incomes.
New: $2,821 | Current: $2,702
The bottom line: The average worker earning $43,000 (the state’s mean annual wage) would pay an extra $119 in income taxes.
Total impact of Abercrombie’s proposed tax hikes: A single private-sector worker earning the mean wage of $43,000 would likely pay a minimum of an extra $242.25.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
State Employee#61466;
The state has some 50,000 employees on its payroll, including the University of Hawaii and Department of Education.
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to the way they affect the young professional above. But the proposed repeal of the income tax deduction would affect state employees differently. That’s because the average state employee earns a higher average salary than the state as a whole.
On top of the proposed tax increases, state employees could be facing pay cuts and increases in health premiums by yet to be determined amounts.
Abercrombie has said he will seek a 5 percent reduction in public employee labor costs, which is the equivalent of one furlough day a month. It’s expected to save $88 million. The move would have to be negotiated with public labor unions. He’s also talked about reducing the state’s share of payments to the Hawaii Employer-Union Health Benefits Trust Fund. But there are no specifics on how employees will be affected.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
State Income Tax Deduction#61466;
For state employees covered by collective bargaining agreements, only salary ranges are made public under the state’s open records law. Including the low end of these ranges, the average salary of public employees is $44,375. Including the high end of these ranges, the average salary is $65,092.
Under Abercrombie’s proposal, the taxable income for a state employee filing as a single person who earns the higher end of state government’s average wage would be $65,092, instead of $63,592. The state Tax Department’s tax table shows a difference of $124 in taxes between the two incomes.
New: $4,623 | Current: $4,499
The bottom line: The average state government worker earning $65,092 would pay an extra $124 in income taxes.
Total Impact of Abercrombie’s proposed tax hikes: A single state worker earning the average wage of $65,092 would pay a minimum of an extra $247.25.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
State Retiree#61466;
Approximately 38,900 public retirees receive health and pension benefits from the state. The earliest state employees can retire is at age 55 to receive pension benefits.
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to private-sector and state employees. But Abercrombie’s proposals to tax pensions and do away with Medicare reimbursements would specifically hit retirees.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
Taxing Pensions#61466;
Pensions would no longer be tax-free at the state level. But Abercrombie has said those who are most dependent on their pensions would be exempt. Only pensions above $37,500 would be taxed. About 7,000 pensioners earn more than that amount, according to the Employees’ Retirement System.
That would include the pension of a public elementary-school teacher who earned up to $79,170 — the highest possible — and retired after 30 years of service. That teacher would receive a monthly pension of $2,474, based on the retirement benefits calculator on the Hawaii Employees’ Retirement System website. Add that to the average Social Security income ($1,007 a month), and the teacher’s pension would total $41,800.
State income tax on $41,800 would total $2,726, according to the Hawaii Tax Department’s tax table.
Another scenario: If for some reason a state retiree didn’t qualify to receive Social Security benefits, she would have had to earn at least $100,000 salary to receive a $37,500 pension, the minimum to qualify to be taxed. Income tax on that pension would total $2,386.
The bottom line: A private-sector retiree receiving a $37,500 pension income would owe $2,386 in state income taxes. The figure would go up depending on the size of the pension.
New: $2,386 | Current: $0
Repeal of Medicare Refunds#61466;
While this isn’t a tax increase, it would represent an increase in out-of-pocket costs to state retirees. Hawaii state government retirees are required by state law when reaching age 65 to enroll in the Medicare Part B program if they are covered under the Hawaii Employer-Union Health Benefits Trust Fund.
Medicare Part B is a federal program that pays for doctors’ fees and outpatient medical expenses. The monthly premium for 2011 is set at $115.40 (up $19 from 2010), which is deducted from a retiree’s Social Security or pension. The state currently reimburses retirees for this cost on a quarterly basis in March, June, September and December.
The bottom line: Eliminating state-funded Medicare Part B reimbursements would mean the average state retiree will have to cover the $1,385 annual cost.
New: $1,385 | Current: $0
Total Impact of Abercrombie’s proposed tax hikes: A single state retiree earning a pension of $37,500 would pay a minimum of an extra $3,894.25.
A private sector retiree earning the same pension would likely pay an additional $2,509.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
Welfare Recipient#61466;
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to others above. But Abercrombie’s proposals to cut social services would hit Hawaii’s neediest residents.
Those living below the poverty level will likely see a drop in services under mandated cuts to the state Department of Human Services. Abercrombie has asked that the department cut its Medicaid program by $37.5 million and its Temporary Assistance for Needy Families (TANF) program by $29.5 million.
A total of 267,000 residents, or almost one out of five Hawaii residents, receive Medicaid benefits. And about 9,450 families receive TANF cash benefits monthly.
TANF is intended to support low-income working families through monthly cash benefits for food, clothing, shelter and other essentials. The average TANF check is $538, according to the department.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
Total Impact of Abercrombie’s proposed tax hikes: A resident living below the poverty level could pay a minimum of an extra $123.25.
eventually to the point of impoverishing those people who are already struggling to make ends meet.
In addition you will find a host of new regulations all designed to extract more of your hard earned money and alignment with UN REGULATIONS
http://www.civilbeat.com/2011/02/8563-ho...-cost-you/
Gov. Neil Abercrombie‘s proposed tax increases will take a bite ranging from barely more than $100 for a welfare recipient to thousands for a state government retiree, a Civil Beat investigation has determined.
Abercrombie in his State of the State speech proposed a combination of tax increases, new fees and cuts to government services.
Civil Beat examined the impacts of the five direct tax and fee increases, as well as the increase in out-of-pocket expenses for state retirees, that have been proposed by the governor to address the state’s budget shortfall.
We looked at the potential financial impacts on a sampling of Hawaii residents and found:
•For a single young professional in the private sector: a minimum of an extra $242.
•For a state employee: a minimum of an extra $247.
•For a state retiree: a minimum of an extra $3,894.
•For a welfare recipient: a minimum of an extra $123.
These are the financial proposals considered for this story with links to the legislative bills that explain them in more detail:
Alcohol Tax: Increasing Hawaii’s six alcohol taxes by 50 percent. Expected to generate an extra $20 million annually.
Soda Tax: A new “sugary beverage” fee of 10 cents for containers 12 ounces or less, and 25 cents for anything bigger manufactured in or imported into Hawaii. Expected to generate $50 million annually.
Vehicle Taxes: A $20 increase of the flat-rate vehicle registration fee, from $25 to $45. Doubling the vehicle weight tax, which currently ranges from .75 cents ($0.0075) to 2.75 cents ($0.0275) per pound. The registration fee would raise an extra $20.6 million. The weight tax increase would generate an addition $33 million.
State Income Tax Deduction: Eliminating deduction for state income taxes paid. Expected to raise $99 million in fiscal 2012.
Pension Tax: Taxing pension income for retirees who earn more than $37,500. Expected to generate about $30 million annually starting in 2013.
Repeal of Medicare Refunds: Eliminating reimbursement of Medicare Part B for state retirees. The move is expected to save the state $42 million a year.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
Young Professional#61466;
There are about 436,400 Hawaii residents between the ages of 21 and 45. Here’s how a single person would be impacted.
Alcohol Tax#61466;
Alcohol taxes will go up noticeably assuming two things: One, that Hawaii residents drink as much as their national counterparts. And two, that the wholesale tax is passed on to the consumer without any additions or savings.
The amounts would break down as follows:
•Wine: $4 in annual taxes. That compares to the $2.76 paid at the current rate, assuming the average American drinks 2 gallons of wine a year (which comes out to a little more than four glasses a month).
•Beer: $32 in annual taxes. That compares to the $21 paid at the current rate, assuming the average American drinks 23 gallons of beer a year (which comes out to about 20 12-ounces bottles a month).
•Liquor: $9 in annual taxes. That compares to the $6 paid at the current rate, assuming the average American drinks a gallon of hard liquor a year (which comes out to about seven shots a month).
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
Soda drinkers can expect to pay more for their sugar fix. The amount of sugar that qualifies a beverage as sugary still hasn’t been defined. The bill’s current language says a “sugary beverage” is “any soda, juice or other non-alcoholic beverage that is sold in separate deposit beverage containers and the contents of which contain more than __ percent sugar, including sweetened water, soda, sports drinks, energy drinks, colas, sweetened coffee or tea, and fruit or vegetable drinks containing less than 70 percent natural fruit or vegetable juice.”
Given that the average American consumes 50 gallons of soda and other sweetened beverages a year, that fee could add up to a minimum of $53, based on 50 gallons amounting to 533 12-ounce cans. But for consumers who drink those 50 gallons via an even mix of 12-ounce cans and larger cans (such as the 16-ounce Monster Energy Drink cans), the fees would add up to about $77 a year.
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
Drivers are in for increased costs under proposals to double the state’s vehicle weight tax and raise registration fees by 80 percent. Owners of heavier vehicles would pay more, lighter vehicles less. These would come on top of vehicle fees also collected by the counties.
Here’s a breakdown of the charges for a car that weighs 3,500 pounds (such as the Toyota Camry), which the bill says is the average for the state:
•State weight tax ($0.0175 per pound): $61.25
•State registration fee: $45
•Honolulu county weight tax ($0.05 per pound): $175
•Honolulu registration fee: $20
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
State Income Tax Deduction#61466;
A repeal of the deduction for state income taxes paid would essentially increase the amount of income subject to tax.
According to the bill, deductions for those earning $75,000 or less would be phased out by 50 percent this year, by 75 percent next year, then completely for tax years after Dec. 31, 2012. For those who earn more than $75,000, the deductions would be eliminated this year.
The standard deduction is a dollar amount that reduces the amount of income on which you are taxed. (Taxpayers can itemize their deductions if they are greater than their allowable standard deduction.) Under the current tax code, standard deduction amounts in Hawaii are:
•Single: $1,500
•Married filing separate: $950
•Married filing jointly: $1,900
•Head of household: $1,650
That means the taxable income for someone filing as a single person who earns the state’s average wage would be $43,000, instead of $41,500. The state Tax Department’s tax table online shows a difference of $119 in taxes between the two incomes.
New: $2,821 | Current: $2,702
The bottom line: The average worker earning $43,000 (the state’s mean annual wage) would pay an extra $119 in income taxes.
Total impact of Abercrombie’s proposed tax hikes: A single private-sector worker earning the mean wage of $43,000 would likely pay a minimum of an extra $242.25.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
State Employee#61466;
The state has some 50,000 employees on its payroll, including the University of Hawaii and Department of Education.
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to the way they affect the young professional above. But the proposed repeal of the income tax deduction would affect state employees differently. That’s because the average state employee earns a higher average salary than the state as a whole.
On top of the proposed tax increases, state employees could be facing pay cuts and increases in health premiums by yet to be determined amounts.
Abercrombie has said he will seek a 5 percent reduction in public employee labor costs, which is the equivalent of one furlough day a month. It’s expected to save $88 million. The move would have to be negotiated with public labor unions. He’s also talked about reducing the state’s share of payments to the Hawaii Employer-Union Health Benefits Trust Fund. But there are no specifics on how employees will be affected.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
State Income Tax Deduction#61466;
For state employees covered by collective bargaining agreements, only salary ranges are made public under the state’s open records law. Including the low end of these ranges, the average salary of public employees is $44,375. Including the high end of these ranges, the average salary is $65,092.
Under Abercrombie’s proposal, the taxable income for a state employee filing as a single person who earns the higher end of state government’s average wage would be $65,092, instead of $63,592. The state Tax Department’s tax table shows a difference of $124 in taxes between the two incomes.
New: $4,623 | Current: $4,499
The bottom line: The average state government worker earning $65,092 would pay an extra $124 in income taxes.
Total Impact of Abercrombie’s proposed tax hikes: A single state worker earning the average wage of $65,092 would pay a minimum of an extra $247.25.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
State Retiree#61466;
Approximately 38,900 public retirees receive health and pension benefits from the state. The earliest state employees can retire is at age 55 to receive pension benefits.
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to private-sector and state employees. But Abercrombie’s proposals to tax pensions and do away with Medicare reimbursements would specifically hit retirees.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
Taxing Pensions#61466;
Pensions would no longer be tax-free at the state level. But Abercrombie has said those who are most dependent on their pensions would be exempt. Only pensions above $37,500 would be taxed. About 7,000 pensioners earn more than that amount, according to the Employees’ Retirement System.
That would include the pension of a public elementary-school teacher who earned up to $79,170 — the highest possible — and retired after 30 years of service. That teacher would receive a monthly pension of $2,474, based on the retirement benefits calculator on the Hawaii Employees’ Retirement System website. Add that to the average Social Security income ($1,007 a month), and the teacher’s pension would total $41,800.
State income tax on $41,800 would total $2,726, according to the Hawaii Tax Department’s tax table.
Another scenario: If for some reason a state retiree didn’t qualify to receive Social Security benefits, she would have had to earn at least $100,000 salary to receive a $37,500 pension, the minimum to qualify to be taxed. Income tax on that pension would total $2,386.
The bottom line: A private-sector retiree receiving a $37,500 pension income would owe $2,386 in state income taxes. The figure would go up depending on the size of the pension.
New: $2,386 | Current: $0
Repeal of Medicare Refunds#61466;
While this isn’t a tax increase, it would represent an increase in out-of-pocket costs to state retirees. Hawaii state government retirees are required by state law when reaching age 65 to enroll in the Medicare Part B program if they are covered under the Hawaii Employer-Union Health Benefits Trust Fund.
Medicare Part B is a federal program that pays for doctors’ fees and outpatient medical expenses. The monthly premium for 2011 is set at $115.40 (up $19 from 2010), which is deducted from a retiree’s Social Security or pension. The state currently reimburses retirees for this cost on a quarterly basis in March, June, September and December.
The bottom line: Eliminating state-funded Medicare Part B reimbursements would mean the average state retiree will have to cover the $1,385 annual cost.
New: $1,385 | Current: $0
Total Impact of Abercrombie’s proposed tax hikes: A single state retiree earning a pension of $37,500 would pay a minimum of an extra $3,894.25.
A private sector retiree earning the same pension would likely pay an additional $2,509.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
Welfare Recipient#61466;
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to others above. But Abercrombie’s proposals to cut social services would hit Hawaii’s neediest residents.
Those living below the poverty level will likely see a drop in services under mandated cuts to the state Department of Human Services. Abercrombie has asked that the department cut its Medicaid program by $37.5 million and its Temporary Assistance for Needy Families (TANF) program by $29.5 million.
A total of 267,000 residents, or almost one out of five Hawaii residents, receive Medicaid benefits. And about 9,450 families receive TANF cash benefits monthly.
TANF is intended to support low-income working families through monthly cash benefits for food, clothing, shelter and other essentials. The average TANF check is $538, according to the department.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
Total Impact of Abercrombie’s proposed tax hikes: A resident living below the poverty level could pay a minimum of an extra $123.25.
Gov. Neil Abercrombie‘s proposed tax increases will take a bite ranging from barely more than $100 for a welfare recipient to thousands for a state government retiree, a Civil Beat investigation has determined.
Abercrombie in his State of the State speech proposed a combination of tax increases, new fees and cuts to government services.
Civil Beat examined the impacts of the five direct tax and fee increases, as well as the increase in out-of-pocket expenses for state retirees, that have been proposed by the governor to address the state’s budget shortfall.
We looked at the potential financial impacts on a sampling of Hawaii residents and found:
•For a single young professional in the private sector: a minimum of an extra $242.
•For a state employee: a minimum of an extra $247.
•For a state retiree: a minimum of an extra $3,894.
•For a welfare recipient: a minimum of an extra $123.
These are the financial proposals considered for this story with links to the legislative bills that explain them in more detail:
Alcohol Tax: Increasing Hawaii’s six alcohol taxes by 50 percent. Expected to generate an extra $20 million annually.
Soda Tax: A new “sugary beverage” fee of 10 cents for containers 12 ounces or less, and 25 cents for anything bigger manufactured in or imported into Hawaii. Expected to generate $50 million annually.
Vehicle Taxes: A $20 increase of the flat-rate vehicle registration fee, from $25 to $45. Doubling the vehicle weight tax, which currently ranges from .75 cents ($0.0075) to 2.75 cents ($0.0275) per pound. The registration fee would raise an extra $20.6 million. The weight tax increase would generate an addition $33 million.
State Income Tax Deduction: Eliminating deduction for state income taxes paid. Expected to raise $99 million in fiscal 2012.
Pension Tax: Taxing pension income for retirees who earn more than $37,500. Expected to generate about $30 million annually starting in 2013.
Repeal of Medicare Refunds: Eliminating reimbursement of Medicare Part B for state retirees. The move is expected to save the state $42 million a year.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
Young Professional#61466;
There are about 436,400 Hawaii residents between the ages of 21 and 45. Here’s how a single person would be impacted.
Alcohol Tax#61466;
Alcohol taxes will go up noticeably assuming two things: One, that Hawaii residents drink as much as their national counterparts. And two, that the wholesale tax is passed on to the consumer without any additions or savings.
The amounts would break down as follows:
•Wine: $4 in annual taxes. That compares to the $2.76 paid at the current rate, assuming the average American drinks 2 gallons of wine a year (which comes out to a little more than four glasses a month).
•Beer: $32 in annual taxes. That compares to the $21 paid at the current rate, assuming the average American drinks 23 gallons of beer a year (which comes out to about 20 12-ounces bottles a month).
•Liquor: $9 in annual taxes. That compares to the $6 paid at the current rate, assuming the average American drinks a gallon of hard liquor a year (which comes out to about seven shots a month).
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
Soda drinkers can expect to pay more for their sugar fix. The amount of sugar that qualifies a beverage as sugary still hasn’t been defined. The bill’s current language says a “sugary beverage” is “any soda, juice or other non-alcoholic beverage that is sold in separate deposit beverage containers and the contents of which contain more than __ percent sugar, including sweetened water, soda, sports drinks, energy drinks, colas, sweetened coffee or tea, and fruit or vegetable drinks containing less than 70 percent natural fruit or vegetable juice.”
Given that the average American consumes 50 gallons of soda and other sweetened beverages a year, that fee could add up to a minimum of $53, based on 50 gallons amounting to 533 12-ounce cans. But for consumers who drink those 50 gallons via an even mix of 12-ounce cans and larger cans (such as the 16-ounce Monster Energy Drink cans), the fees would add up to about $77 a year.
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
Drivers are in for increased costs under proposals to double the state’s vehicle weight tax and raise registration fees by 80 percent. Owners of heavier vehicles would pay more, lighter vehicles less. These would come on top of vehicle fees also collected by the counties.
Here’s a breakdown of the charges for a car that weighs 3,500 pounds (such as the Toyota Camry), which the bill says is the average for the state:
•State weight tax ($0.0175 per pound): $61.25
•State registration fee: $45
•Honolulu county weight tax ($0.05 per pound): $175
•Honolulu registration fee: $20
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
State Income Tax Deduction#61466;
A repeal of the deduction for state income taxes paid would essentially increase the amount of income subject to tax.
According to the bill, deductions for those earning $75,000 or less would be phased out by 50 percent this year, by 75 percent next year, then completely for tax years after Dec. 31, 2012. For those who earn more than $75,000, the deductions would be eliminated this year.
The standard deduction is a dollar amount that reduces the amount of income on which you are taxed. (Taxpayers can itemize their deductions if they are greater than their allowable standard deduction.) Under the current tax code, standard deduction amounts in Hawaii are:
•Single: $1,500
•Married filing separate: $950
•Married filing jointly: $1,900
•Head of household: $1,650
That means the taxable income for someone filing as a single person who earns the state’s average wage would be $43,000, instead of $41,500. The state Tax Department’s tax table online shows a difference of $119 in taxes between the two incomes.
New: $2,821 | Current: $2,702
The bottom line: The average worker earning $43,000 (the state’s mean annual wage) would pay an extra $119 in income taxes.
Total impact of Abercrombie’s proposed tax hikes: A single private-sector worker earning the mean wage of $43,000 would likely pay a minimum of an extra $242.25.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
State Employee#61466;
The state has some 50,000 employees on its payroll, including the University of Hawaii and Department of Education.
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to the way they affect the young professional above. But the proposed repeal of the income tax deduction would affect state employees differently. That’s because the average state employee earns a higher average salary than the state as a whole.
On top of the proposed tax increases, state employees could be facing pay cuts and increases in health premiums by yet to be determined amounts.
Abercrombie has said he will seek a 5 percent reduction in public employee labor costs, which is the equivalent of one furlough day a month. It’s expected to save $88 million. The move would have to be negotiated with public labor unions. He’s also talked about reducing the state’s share of payments to the Hawaii Employer-Union Health Benefits Trust Fund. But there are no specifics on how employees will be affected.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
State Income Tax Deduction#61466;
For state employees covered by collective bargaining agreements, only salary ranges are made public under the state’s open records law. Including the low end of these ranges, the average salary of public employees is $44,375. Including the high end of these ranges, the average salary is $65,092.
Under Abercrombie’s proposal, the taxable income for a state employee filing as a single person who earns the higher end of state government’s average wage would be $65,092, instead of $63,592. The state Tax Department’s tax table shows a difference of $124 in taxes between the two incomes.
New: $4,623 | Current: $4,499
The bottom line: The average state government worker earning $65,092 would pay an extra $124 in income taxes.
Total Impact of Abercrombie’s proposed tax hikes: A single state worker earning the average wage of $65,092 would pay a minimum of an extra $247.25.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
SHARE STORY
State Retiree#61466;
Approximately 38,900 public retirees receive health and pension benefits from the state. The earliest state employees can retire is at age 55 to receive pension benefits.
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to private-sector and state employees. But Abercrombie’s proposals to tax pensions and do away with Medicare reimbursements would specifically hit retirees.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
Taxing Pensions#61466;
Pensions would no longer be tax-free at the state level. But Abercrombie has said those who are most dependent on their pensions would be exempt. Only pensions above $37,500 would be taxed. About 7,000 pensioners earn more than that amount, according to the Employees’ Retirement System.
That would include the pension of a public elementary-school teacher who earned up to $79,170 — the highest possible — and retired after 30 years of service. That teacher would receive a monthly pension of $2,474, based on the retirement benefits calculator on the Hawaii Employees’ Retirement System website. Add that to the average Social Security income ($1,007 a month), and the teacher’s pension would total $41,800.
State income tax on $41,800 would total $2,726, according to the Hawaii Tax Department’s tax table.
Another scenario: If for some reason a state retiree didn’t qualify to receive Social Security benefits, she would have had to earn at least $100,000 salary to receive a $37,500 pension, the minimum to qualify to be taxed. Income tax on that pension would total $2,386.
The bottom line: A private-sector retiree receiving a $37,500 pension income would owe $2,386 in state income taxes. The figure would go up depending on the size of the pension.
New: $2,386 | Current: $0
Repeal of Medicare Refunds#61466;
While this isn’t a tax increase, it would represent an increase in out-of-pocket costs to state retirees. Hawaii state government retirees are required by state law when reaching age 65 to enroll in the Medicare Part B program if they are covered under the Hawaii Employer-Union Health Benefits Trust Fund.
Medicare Part B is a federal program that pays for doctors’ fees and outpatient medical expenses. The monthly premium for 2011 is set at $115.40 (up $19 from 2010), which is deducted from a retiree’s Social Security or pension. The state currently reimburses retirees for this cost on a quarterly basis in March, June, September and December.
The bottom line: Eliminating state-funded Medicare Part B reimbursements would mean the average state retiree will have to cover the $1,385 annual cost.
New: $1,385 | Current: $0
Total Impact of Abercrombie’s proposed tax hikes: A single state retiree earning a pension of $37,500 would pay a minimum of an extra $3,894.25.
A private sector retiree earning the same pension would likely pay an additional $2,509.
SECTIONS
1.Young Professional
2.Alcohol Tax
3.Soda Tax
4.Vehicle Taxes
5.State Income Tax Deduction
6.State Employee
7.Alcohol Tax
8.Soda Tax
9.Vehicle Taxes
10.State Income Tax Deduction
11.State Retiree
12.Alcohol Tax
13.Soda Tax
14.Vehicle Taxes
15.Taxing Pensions
16.Repeal of Medicare Refunds
17.Welfare Recipient
18.Alcohol Tax
19.Soda Tax
20.Vehicle Taxes
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Welfare Recipient#61466;
Potential impacts from hikes to the alcohol tax and vehicle registration costs as well as the new soda tax would apply similarly to others above. But Abercrombie’s proposals to cut social services would hit Hawaii’s neediest residents.
Those living below the poverty level will likely see a drop in services under mandated cuts to the state Department of Human Services. Abercrombie has asked that the department cut its Medicaid program by $37.5 million and its Temporary Assistance for Needy Families (TANF) program by $29.5 million.
A total of 267,000 residents, or almost one out of five Hawaii residents, receive Medicaid benefits. And about 9,450 families receive TANF cash benefits monthly.
TANF is intended to support low-income working families through monthly cash benefits for food, clothing, shelter and other essentials. The average TANF check is $538, according to the department.
Alcohol Tax#61466;
The bottom line: Alcohol taxes would cost the average drinker 51 percent more — $45.
New: $45 | Current: $29.75
Soda Tax#61466;
The bottom line: The new “sugary beverage” fee would cost the average soda drinker a minimum $53 a year. The taxes would be $100 for someone who consumes their 50 gallons by way of all 16-ounce purchases, and $47 for someone who consumes their 50 gallons by way of all two-liter purchases.
New: $53 | Current: $0
Vehicle Taxes#61466;
The bottom line: The annual vehicle registration bill for the average Honolulu driver would increase by $55.
New: $301.25 | Current: $246.25
Total Impact of Abercrombie’s proposed tax hikes: A resident living below the poverty level could pay a minimum of an extra $123.25.