STAND. COM. REP. 3260

Honolulu, Hawaii

, 2004

RE: H.B. No. 1904

H.D. 1

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1904, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to increase the income tax deduction provided to national guard members and other reservists.

Your Committee finds that the volatile and unstable nature of world politics has changed our sense of security forever. The war in Iraq and United States troop involvement in Afghanistan and other parts of the world has changed our lives, especially those that serve in the national guard and reserves. Tens of thousands of reservists and national guard troops will be deployed, including thousands of national guard members and reservists based in Hawaii.

For many in the national guard and reserves, active duty will mean a significant loss of income. Although some financial institutions and lenders are willing to craft financial arrangements that take into account the reductions in income, the reality remains that rent, mortgages, and a host of other expenses must still be met.

To send national guard members and reservists into harm's way while expecting them to suffer a sharp drop in pay is unduly onerous and highly unfair. This bill would provide a modicum of assistance by increasing the income tax deduction provided to national guard members and reservists to hopefully alleviate some of the burden on our citizen-soldiers who serve and protect our country and our State against all enemies.

Your Committee has amended the bill by providing a blank tax deduction amount to promote further discussion.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1904, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1904, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair