HOUSE OF REPRESENTATIVES	H.B. NO.	1919
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

Relating to income tax reduction.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that Hawaii's state tax burden is the worst in the nation for low-income wage earners.  The combined effects of the income tax and general excise tax results in the bottom twenty per cent of low-income residents spending a higher percentage, 12.2 per cent, of their $9,800 income for taxes than all other earners.  This rate is almost twice the 6.3 per cent of taxes paid by people with an income of $1.4 million or above who are the top one per cent of the income earners.  The cost of living in Hawaii is one hundred sixty-five per cent of the national average, while Hawaii has the lowest national adjusted-average income, $22,108.

     The purpose of this Act is to decrease by twenty-five per cent the income tax rates for all but the top income earners. SECTION 2.  Section 235-51, Hawaii Revised Statutes, is amended by amending subsection (a) through (c) to read as follows:

     "§235-51  Tax imposed on individuals; rates.  (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, 2001:

          If the taxable income is:    The tax shall be:

          Not over $4,000              1.40% of taxable income

          Over $4,000 but              $56.00 plus 3.20% of

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

          Over $8,000 but              $184.00 plus 5.50% of

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

          Over $16,000 but             $624.00 plus 6.40% of

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

          Over $24,000 but             $1,136.00 plus 6.80% of

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

          Over $32,000 but             $1,680.00 plus 7.20% of

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

          Over $40,000 but             $2,256.00 plus 7.60% of

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

          Over $60,000 but             $3,776.00 plus 7.90% of

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

          Over $80,000                 $5,356.00 plus 8.25% of

                                         excess over $80,000.

     In the case of any taxable year beginning after December 31, 2006:

          If the taxable income is:    The tax shall be:

          Not over $4,800              1.40% of taxable income

          Over $4,800 but              $67.00 plus 3.20% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $221.00 plus 5.50% of

            not over $19,200             excess over $9,600

          Over $19,200 but             $749.00 plus 6.40% of

            not over $28,800             excess over $19,200

          Over $28,800 but             $1,363.00 plus 6.80% of

            not over $38,400             excess over $28,800

          Over $38,400 but             $2,016.00 plus 7.20% of

            not over $48,000             excess over $38,400

          Over $48,000 but             $2,707.00 plus 7.60% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $4,531.00 plus 7.90% of

            not over $96,000             excess over $72,000

          Over $96,000                 $6,427.00 plus 8.25% of

                                         excess over $96,000.

In the case of any taxable year beginning after December 31, 2015:

If the taxable income is: The tax shall be:

Not over $4,800 1.05% of taxable income

Over $4,800 but $67.00 plus 2.40% of

not over $9,600 excess over $4,800

Over $9,600 but $221.00 plus 4.10% of

not over $19,200 excess over $9,600

Over $19,200 but $749.00 plus 4.80% of

not over $28,800 excess over $19,200

Over $28,800 but $1,363.00 plus 5.10% of

not over $38,400 excess over $28,800

Over $38,400 but $2,016.00 plus 5.40% of

not over $48,000 excess over $38,400

Over $48,000 but $2,707.00 plus 5.70% of

not over $72,000 excess over $48,000

Over $72,000 but $4,531.00 plus 5.90% of

not over $96,000 excess over $72,000

Over $96,000 but $6,427.00 plus 6.20% of

not over $300,000 excess over $96,000

Over $300,000 but $23,257.00 plus 9.00%

not over $350,000 excess over $300,000

Over $350,000 but $27,757.00 plus 10.00% of

not over $400,000 excess over $300,000

Over $400,000 $32,757.00 plus 11.00% of

excess over $400,000.

(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, 2001:

          If the taxable income is:    The tax shall be:

          Not over $3,000              1.40% of taxable income

          Over $3,000 but              $42.00 plus 3.20% of

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

          Over $6,000 but              $138.00 plus 5.50% of

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

          Over $12,000 but             $468.00 plus 6.40% of

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

          Over $18,000 but             $852.00 plus 6.80% of

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

          Over $24,000 but             $1,260.00 plus 7.20% of

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

          Over $30,000 but             $1,692.00 plus 7.60% of

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

          Over $45,000 but             $2,832.00 plus 7.90% of

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

          Over $60,000                 $4,017.00 plus 8.25% of

                                         excess over $60,000.

     In the case of any taxable year beginning after December 31, 2006:

          If the taxable income is:    The tax shall be:

          Not over $3,600              1.40% of taxable income

          Over $3,600 but              $50.00 plus 3.20% of

            not over $7,200              excess over $3,600

          Over $7,200 but              $166.00 plus 5.50% of

            not over $14,400             excess over $7,200

          Over $14,400 but             $562.00 plus 6.40% of

            not over $21,600             excess over $14,400

          Over $21,600 but             $1,022.00 plus 6.80% of

            not over $28,800             excess over $21,600

          Over $28,800 but             $1,512.00 plus 7.20% of

            not over $36,000             excess over $28,800

          Over $36,000 but             $2,030.00 plus 7.60% of

            not over $54,000             excess over $36,000

          Over $54,000 but             $3,398.00 plus 7.90% of

            not over $72,000             excess over $54,000

          Over $72,000                 $4,820.00 plus 8.25% of

                                         excess over $72,000.

In the case of any taxable year beginning after December 31, 2015:

If the taxable income is: The tax shall be:

Not over $3,600 1.05% of taxable income

Over $3,600 but $50.00 plus 2.40% of

not over $7,200 excess over $3,600

Over $7,200 but $166.00 plus 4.10% of

not over $14,400 excess over $7,200

Over $14,400 but $562.00 plus 4.80% of

not over $21,600 excess over $14,400

Over $21,600 but $1,022.00 plus 5.10% of

not over $28,800 excess over $21,600

Over $28,800 but $1,512.00 plus 5.40% of

not over $36,000 excess over $28,800

Over $36,000 but $2,030.00 plus 5.70% of

not over $54,000 excess over $36,000

Over $54,000 but $3,398.00 plus 5.90% of

not over $72,000 excess over $54,000

Over $72,000 but $4,820.00 plus 6.20% of

not over $225,000 excess over $72,000

Over $225,000 but $17,443.00 plus 9.00% of

not over $262,500 excess over $225,000

Over $262,500 but $20,818.00 plus 10.00% of

not over $300,000 excess over $262,500

Over $300,000 $24,568.00 plus 11.00% of

excess over $300,000.

(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, 2001:

          If the taxable income is:    The tax shall be:

          Not over $2,000              1.40% of taxable income

          Over $2,000 but              $28.00 plus 3.20% of

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

          Over $4,000 but              $92.00 plus 5.50% of

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

          Over $8,000 but              $312.00 plus 6.40% of

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

          Over $12,000 but             $568.00 plus 6.80% of

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

          Over $16,000 but             $840.00 plus 7.20% of

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

          Over $20,000 but             $1,128.00 plus 7.60% of

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

          Over $30,000 but             $1,888.00 plus 7.90% of

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

          Over $40,000                 $2,678.00 plus 8.25% of

                                         excess over $40,000.

     In the case of any taxable year beginning after December 31, 2006:

          If the taxable income is:    The tax shall be:

          Not over $2,400              1.40% of taxable income

          Over $2,400 but              $34.00 plus 3.20% of

            not over $4,800              excess over $2,400

          Over $4,800 but              $110.00 plus 5.50% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $374.00 plus 6.40% of

            not over $14,400             excess over $9,600

          Over $14,400 but             $682.00 plus 6.80% of

            not over $19,200             excess over $14,400

          Over $19,200 but             $1,008.00 plus 7.20% of

            not over $24,000             excess over $19,200

          Over $24,000 but             $1,354.00 plus 7.60% of

            not over $36,000             excess over $24,000

          Over $36,000 but             $2,266.00 plus 7.90% of

            not over $48,000             excess over $36,000

          Over $48,000                 $3,214.00 plus 8.25% of

                                         excess over $48,000.

In the case of any taxable year beginning after December 31, 2015:

If the taxable income is: The tax shall be:

Not over $2,400 1.05% of taxable income

Over $2,400 but $34.00 plus 2.40% of

not over $4,800 excess over $2,400

Over $4,800 but $110.00 plus 4.10% of

not over $9,600 excess over $4,800

Over $9,600 but $374.00 plus 4.80% of

not over $14,400 excess over $9,600

Over $14,400 but $682.00 plus 5.10% of

not over $19,200 excess over $14,400

Over $19,200 but $1,008.00 plus 5.40% of

not over $24,000 excess over $19,200

Over $24,000 but $1,354.00 plus 5.70% of

not over $36,000 excess over $24,000

Over $36,000 but $2,266.00 plus 5.90% of

not over $48,000 excess over $36,000

Over $48,000 but $3,214.00 plus 6.20% of

not over $150,000 excess over $48,000

Over $150,000 but $11,629.00 plus 9.00% of

not over $175,000 excess over $150,000

Over $175,000 but $13,879.00 plus 10.00% of

Not over $200,000 excess over $175,000

Over $200,000 $16,379.00 plus 11.00% of

excess over $200,000."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2015.

INTRODUCED BY:	_____________________________
	_____________________________

Report Title:

Taxation; Income Tax Rates.

Description:

Decreases the income tax by twenty-five per cent for all but top income earners.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.