Reduces individual income tax rates by 50%.

A BILL FOR AN ACT

SECTION 1. Section 235-51, Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c) to read as follows:

"(a) There is hereby imposed on the taxable income of (1) every taxpayer who files a joint return under section 235-93; and (2) every surviving spouse a tax determined in accordance with the following table:

[In the case of any taxable year beginning after December 31, 1998:

If the taxable income is: The tax shall be:

Not over $4,000 1.60% of taxable income

Over $4,000 but $64.00 plus 3.90% of

not over $8,000 excess over $4,000

Over $8,000 but $220.00 plus 6.80% of

not over $16,000 excess over $8,000

Over $16,000 but $764.00 plus 7.20%of

not over $24,000 excess over $16,000

Over $24,000 but $1,340.00 plus 7.50% of

not over $32,000 excess over $24,000

Over $32,000 but $1,940.00 plus 7.80% of

not over $40,000 excess over $32,000

Over $40,000 but $2,564.00 plus 8.20% of

not over $60,000 excess over $40,000

Over $60,000 but $4,204.00 plus 8.50% of

not over $80,000 excess over $60,000

Over $80,000 $5,904.00 plus 8.75% of

excess over $80,000]

In the case of any taxable year beginning after December 31, 2000:

If the taxable income is: The tax shall be:

Not over $4,000 [1.50%] 0.75% of taxable income

Over $16,000 but [$720.00] $360.00 plus [6.90%] 3.45%

not over $24,000 of excess over $16,000

not over $32,000 of excess over $24,000

Over $32,000 but [$1,856.00] $928.00 plus [7.60%] 3.80%

not over $40,000 of excess over $32,000

not over $60,000 of excess over $40,000

Over $60,000 but [$4,044.00] $2,022.00 plus [8.20%] 4.10% not over $80,000 of excess over $60,000

Over $80,000 [$5,684.00] $2,842.00 plus [8.50%] 4.25%

of excess over $80,000

In the case of any taxable year beginning after December 31, 2001:

If the taxable income is: The tax shall be:

Not over $4,000 [1.40%] 0.70% of taxable income

Over $4,000 but [$56.00] $28.00 plus [3.20%] 1.60%

not over $8,000 of excess over $4,000

Over $8,000 but [$184.00] $92.00 plus [5.50%] 2.75%

not over $16,000 of excess over $8,000

Over $16,000 but [$624.00] $312.00 plus [6.40%] 3.20%

not over $24,000 of excess over $16,000

Over $24,000 but [$1,136.00] $568.00 plus [6.80%] 3.40%

not over $32,000 of excess over $24,000

Over $32,000 but [$1,680.00] $840.00 plus [7.20%] 3.60%

not over $40,000 of excess over $32,000

Over $40,000 but [$2,256.00] $1,128.00 plus [7.60%] 3.80%

not over $60,000 of excess over $40,000

Over $60,000 but [$3,776.00] $1,888.00 plus [7.90%] 3.95%

not over $80,000 of excess over $60,000

Over $80,000 [$5,356.00] $2,678.00 plus [8.25%] 4.125%

of excess over $80,000

(b) There is hereby imposed on the taxable income of every head of a household a tax determined in accordance with the following table:

[In the case of any taxable year beginning after December 31, 1998:

If the taxable income is: The tax shall be:

Not over $3,000 1.60% of taxable income

Over $3,000 but $48.00 plus 3.90% of

not over $6,000 excess over $3,000

Over $6,000 but $165.00 plus 6.80% of

not over $12,000 excess over $6,000

Over $12,000 but $573.00 plus 7.20% of

not over $18,000 excess over $12,000

Over $18,000 but $1,005.00 plus 7.50% of

not over $24,000 excess over $18,000

Over $24,000 but $1,455.00 plus 7.80% of

not over $30,000 excess over $24,000

Over $30,000 but $1,923.00 plus 8.20% of

not over $45,000 excess over $30,000

Over $45,000 but $3,153.00 plus 8.50% of

not over $60,000 excess over $45,000

Over $60,000 $4,428.00 plus 8.75% of

excess over $60,000]

In the case of any taxable year beginning after December 31, 2000:

If the taxable income is: The tax shall be:

Not over $3,000 [1.50%] 0.75% of taxable income

Over $3,000 but [$45.00] $22.50 plus [3.70%] 1.85%

not over $6,000 of excess over $3,000

Over $6,000 but [$156.00] $78.00 plus [6.40%] 3.20%

not over $12,000 of excess over $6,000

Over $12,000 but [$540.00] $270.00 plus [6.90%] 3.45%

not over $18,000 of excess over $12,000

Over $18,000 but [$954.00] $477.00 plus [7.30%] 3.65%

not over $24,000 of excess over $18,000

Over $24,000 but [$1,392.00] $696.00 plus [7.60%] 3.80%

not over $30,000 of excess over $24,000

Over $30,000 but [$1,848.00] $924.00 plus [7.90%] 3.95%

not over $45,000 of excess over $30,000

Over $45,000 but [$3,033.00] $1,516.50 plus [8.20%] 4.10%

not over $60,000 of excess over $45,000

Over $60,000 [$4,263.00] $2,131.50 plus [8.50%] 4.25%

of excess over $60,000

In the case of any taxable year beginning after December 31, 2001:

If the taxable income is: The tax shall be:

Not over $3,000 [1.40%] 0.70% of taxable income

Over $3,000 but [$42.00] $21.00 plus [3.20%] 1.60%

not over $6,000 of excess over $3,000

Over $6,000 but [$138.00] $69.00 plus [5.50%] 2.75%

not over $12,000 of excess over $6,000

Over $12,000 but [$468.00] $234.00 plus [6.40%] 3.20%

not over $18,000 of excess over $12,000

Over $18,000 but [$852.00] $426.00 plus [6.80%] 3.40%

not over $24,000 of excess over $18,000

Over $24,000 but [$1,260.00] $630.00 plus [7.20%] 3.60%

not over $30,000 of excess over $24,000

Over $30,000 but [$1,692.00] $846.00 plus [7.60%] 3.80%

not over $45,000 of excess over $30,000

Over $45,000 but [$2,832.00] $1,416.50 plus [7.90%] 3.95%

not over $60,000 of excess over $45,000

Over $60,000 [$4,017.00] $2,008.50 plus [8.25%] 4.125%

of excess over $60,000

(c) There is hereby imposed on the taxable income of (1) every unmarried individual (other than a surviving spouse, or the head of a household) and (2) on the taxable income of every married individual who does not make a single return jointly with the individual's spouse under section 235-93 a tax determined in accordance with the following table:

[In the case of any taxable year beginning after December 31, 1998:

If the taxable income is: The tax shall be:

Not over $2,000 1.60% of taxable income

Over $2,000 but $32.00 plus 3.90% of

not over $4,000 excess over $2,000

Over $4,000 but $110.00 plus 6.80% of

not over $8,000 excess over $4,000

Over $8,000 but $382.00 plus 7.20% of

not over $12,000 excess over $8,000

Over $12,000 but $670.00 plus 7.50% of

not over $16,000 excess over $12,000

Over $16,000 but $970.00 plus 7.80% of

not over $20,000 excess over $16,000

Over $20,000 but $1,282.00 plus 8.20% of

not over $30,000 excess over $20,000

Over $30,000 but $2,102.00 plus 8.50% of

not over $40,000 excess over $30,000

Over $40,000 $2,952.00 plus 8.75% of

excess over $40,000]

In the case of any taxable year beginning after December 31, 2000:

If the taxable income is: The tax shall be:

Not over $2,000 [1.50%] 0.75% of taxable income

Over $2,000 but [$30.00] $15.00 plus [3.70%] 1.85%

not over $4,000 of excess over $2,000

Over $4,000 but [$104.00] $52.00 plus [6.40%] 3.20%

not over $8,000 of excess over $4,000

Over $8,000 but [$360.00] $180.00 plus [6.90%] 3.45%

not over $12,000 of excess over $8,000

Over $12,000 but [$636.00] $318.00 plus [7.30%] 3.65%

not over $16,000 of excess over $12,000

Over $16,000 but [$928.00] $464.00 plus [7.60%] 3.80%

not over $20,000 of excess over $16,000

Over $20,000 but [$1,232.00] $616.00 plus [7.90%] 3.95%

not over $30,000 of excess over $20,000

Over $30,000 but [$2,022.00] $1,011.00 plus [8.20%] 4.10%

not over $40,000 of excess over $30,000

Over $40,000 [$2,842.00] $1,421.00 plus [8.50%] 4.25%

of excess over $40,000

In the case of any taxable year beginning after December 31, 2001:

If the taxable income is: The tax shall be:

Not over $2,000 [1.40%] 0.70% of taxable income

Over $2,000 but [$28.00] $14.00 plus [3.20%] 1.60%

not over $4,000 of excess over $2,000

Over $4,000 but [$92.00] $46.00 plus [5.50%] 2.75%

not over $8,000 of excess over $4,000

Over $8,000 but [$312.00] $156.00 plus [6.40%] 3.20%

not over $12,000 of excess over $8,000

Over $12,000 but [$568.00] $284.00 plus [6.80%] 3.40%

not over $16,000 of excess over $12,000

Over $16,000 but [$840.00] $420.00 plus [7.20%] 3.60%

not over $20,000 of excess over $16,000

Over $20,000 but [$1,128.00] $564.00 plus [7.60%] 3.80%

not over $30,000 of excess over $20,000

Over $30,000 but [$1,888.00] $944.00 plus [7.90%] 3.95%

not over $40,000 of excess over $30,000

Over $40,000 [$2,678.00] $1,339.99 plus [8.25%] 4.125%

of excess over $40,000"

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.