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.
Transformative change meets budget realities—a central lawmaking tension plays out in two new reports
Policy in Perspective 2025 and the Hawaiʻi Budget Primer FY2025–26 provide a compelling—and sometimes sobering—look at how Hawaiʻi invests, and often under-invests, in its communities.
Can Hawaiʻi afford to cut the grocery tax?
Any proposal to reduce or remove the GET on food must be paired with a credible plan for replacing the revenue. It’s a challenge, but also an opportunity to build a fairer and more sustainable system.
Incoming federal tax cuts will heavily favor Hawaiʻi’s wealthiest residents
The State of Hawaiʻi has an obligation to shore up its revenue through tax policies that make the wealthiest among us pay their fair share.
Hawaiʻi’s 2025 legislature focused on raising tax revenue to prepare for federal cuts
Assessing a proper tax rate on corporations and the wealthy will be necessary to produce a budget that can fund critical safety net programs and investments in our future.
Proposed Trump tax cuts will overwhelmingly benefit the top 1 percent
As millions of Americans file their taxes this April, both the U.S. House and Senate have passed budget resolutions that open the pathway for a massive tax giveaway for the wealthiest people in the country.
Congress’ budget blueprint leaves Hawaiʻi’s working families behind
In effect, the budget blueprint aims to take food out of the mouths of hungry keiki, so that billionaires can pad their pockets even more on the way to the bank.
How a second Trump presidency could impact the pocket books of Hawaiʻi’s working families
Outside of the top 5 percent richest households, families will likely see significant tax increases, while the cost of consumer items would spike under proposed tariffs.
Hawaiʻi’s elected leaders buy-in to costly “trickle-down” myth
Passing an “historic” tax cut that mostly benefits the wealthiest Hawaiʻi residents is not the path to a healthy economy that works for working people.
The big budget trouble with HB2404’s over-broad and sweeping tax cuts
Last minute changes to the bill, made without public scrutiny, will increase its cost by nearly eight-fold, while higher-income households will get a far bigger benefit than those struggling to make ends meet.
Trickle-down estate tax break bills are bad policy for Hawaiʻi
After decades of evidence, we know “trickle-down” economics is a smokescreen to aid the wealthy in creating preferential tax policies.
Lawmakers still need to equitably raise revenue to meet Hawaiʻi’s needs
On tax policy, state legislators made progress in 2023 with tax relief, but left smart, revenue-raising policy initiatives on the table for next session.
Hawaiʻi inequality is on the rise—wealth taxes can help fix the problem
Hawaiʻi is one of the most unequal states in the nation for wealth distribution, but tax policy changes can help capture more wealth at the top to invest back into communities.
Honolulu council should take time, consider whether Bill 45 is a good investment
While the stated purpose of Bill 45 is to promote economic growth, there is no way to show that providing the additional incentives in Bill 45 would be a cost-effective use of the city’s funds.
Tax reform that addresses racial injustice also boosts the economy
When it comes to increasing both racial equity and economic prosperity, smart tax system reforms can be an effective policy tool to achieve both.
Fix the conveyance tax reform bill; don’t veto it
Increased economic activity and federal relief funds will only go so far; policymakers need to think about longterm needs for our communities and how we’ll get the resources to pay for them.
Tax fairness is popular and needed for Hawaiʻi’s future
Most taxpayers agree that a fair and effective tax system is a critical part of building Hawaiʻi’s future.
Our tax system increases inequity
Our tax system plays a big role in the widening gap between those who are wealthy and those who are struggling to get by—a gap that is exponentially greater in Black, brown and indigenous communities.
Trump’s tax cuts gave Hawaiʻi’s rich a windfall; recapturing it would help our economy
The Tax Cuts and Jobs Act worsened economic inequality. It’s time to ask the households that benefitted the most from that windfall to contribute more to the common good.
How to plug Hawaiʻi’s budget gap while preserving critical services like education
There’s no doubt that the recession has punched a hole in Hawaiʻi’s state budget, but there are ways to plug the gap without cutting critical services.