185
HOUSE OF REPRESENTATIVES             H.C.R. NO.            
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  CONCURRENT
                        RESOLUTION

  REQUESTING A STUDY OF WHETHER AN EARNED INCOME TAX CREDIT IS A
    VIABLE ALTERNATIVE TO RAISING THE MINIMUM WAGE TO A LIVING
    WAGE LEVEL.



 1        WHEREAS, the earned income tax credit is a refundable tax
 2   credit on earned income up to a certain amount; and
 3   
 4        WHEREAS, the amount of the earned income tax credit is
 5   reduced on a dollar-for-dollar basis if the earned income (or
 6   adjusted gross income) is greater than such amount; and
 7   
 8        WHEREAS, the living wage appears to have its origins as a
 9   minimum wage for employees of municipal contractors that is set
10   a few dollars per hour higher than the prevailing state minimum
11   wage in order to raise the living standards of those employees
12   living and working in cities to a so called "livable" level;
13   and
14   
15        WHEREAS, the State presently has no laws recognizing the
16   earned income tax credit, whose costs are borne by taxpayers,
17   or the living wage, whose costs are borne by contractors; and
18   
19        WHEREAS, there exists the possibility that implementing an
20   earned income tax credit may provide its beneficiaries with
21   roughly the same economic benefits as an increase in the
22   overall state minimum wage to the same dollar amount per hour
23   which would have been set as a living wage for employees of
24   municipal contractors; now, therefore,
25   
26        BE IT RESOLVED by the House of Representatives of the
27   Twentieth Legislature of the State of Hawaii, Regular Session
28   of 2000, the Senate concurring, that the Department of Human
29   Services, with the assistance of the Departments of Taxation;
30   Labor and Industrial Relations; and Business, Economic
31   Development, and Tourism, is respectfully requested to study
32   whether enactment of an earned income tax credit is a viable
33   alternative to raising the minimum wage to a living wage level;
34   and

 
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                                  H.C.R. NO.            
                                                        
                                                        

 
 1   
 2        BE IT FURTHER RESOLVED that the Department of Human
 3   Services is requested to submit findings and recommendations to
 4   the Legislature no later than twenty days prior to the
 5   convening of the Regular Session of 2001; and
 6   
 7        BE IT FURTHER RESOLVED that certified copies of this
 8   Concurrent Resolution be transmitted to the Director of
 9   Taxation; the Director of Human Services; the Director of Labor
10   and Industrial Relations; and the Director of Business,
11   Economic Development, and Tourism.
12   
13 
14 
15 
16                         OFFERED BY:  ____________________________