STAND. COM. REP. NO. 1200

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1747

       H.D. 1

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred H.B. No. 1747, H.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 Hawaii state income tax rates for high income earners.

 

     This measure also increases the amount of the standard deduction and the personal exemption allowable in taxable years beginning after December 31, 2010.

 

     One organization and one concerned individual submitted testimony in support of this measure.  One government agency, one organization, and one concerned individual submitted testimony in opposition to this measure.  One organization submitted comments on this measure.  Written testimony and comments presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that this measure would increase the standard deduction and personal exemption amounts to provide tax relief to lower income earners.  Your Committee also finds that creating additional tax brackets and higher income tax rates for high income earners is a progressive tax policy that would spread the tax burden more equitably among Hawaii's taxpayers.  Your Committee also believes that this measure raises badly needed tax revenue for the State during the current economic crisis.

 

     Your Committee has amended this measure by:

 

     (1)  Raising the tax bracket amounts at which the higher tax rates begin for:

 

          (A)  Joint filers:  $350,000;

 

          (B)  Head of household filers:  $250,000; and

 

          (C)  Single filers:  $200,000;

 

     (2)  Changing the effective date to January 1, 2050, to facilitate further discussion; and

 

     (3)  Making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

 

     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. 1747, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1747, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.

 

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

 

 

 

____________________________

DONNA MERCADO KIM, Chair