STAND. COM. REP. NO.699
Honolulu, Hawaii
, 2001
RE: H.B. No. 165
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Finance, to which was referred H.B. No. 165 entitled:
"A BILL FOR AN ACT RELATING TO INCOME TAX CREDITS,"
begs leave to report as follows:
The purpose of this bill is to reduce taxes and supplement wages for low-income taxpayers by allowing them to claim an earned income tax credit of 10 percent and 15 percent of their tax liability.
The Kokua Council, Hawaii State Commission on the Status of Women, National Federation of Independent Business-Hawaii, Legal Aid Society of Hawaii, American Friends Service Committee, and concerned citizens supported this measure.
The Department of Taxation opposed this measure. The Tax Foundation of Hawaii provided comments.
Your Committee has amended this bill by:
(1) More clearly articulating how a state earned income tax credit, built on the federal earned income tax credit which has proven to be an effective anti-poverty program, would assist Hawaii's working families;
(2) Removing the percentages of the federal earned income tax credits to facilitate further discussion; and
(3) Making technical, nonsubstantive amendments for purposes of style, clarity, and consistency.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 165, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 165, H.D. 1.
and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |
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