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Hawaiʻi Appleseed
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Hawaiʻi’s two-tier tax system: How the rich use a glaring loophole to pay less
Taxes & Budget Devin Thomas 11/12/25 Taxes & Budget Devin Thomas 11/12/25

Hawaiʻi’s two-tier tax system: How the rich use a glaring loophole to pay less

While teachers, nurses and service workers pay income tax on every dollar they earn, the wealthy can shield a large portion of their profits thanks to a special tax break on capital gains.

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