‘Audacious’ tax relief plan advances at Hawaiʻi Legislature

Several bills that would cut household taxes in Hawaiʻi are advancing at the legislature, including one promising to save a family of four around $2,000 or more in 2024 and beyond.

The biggest proposed savings are in a bill from Gov. Josh Green that would boost all Hawaiʻi income tax bracket thresholds and increase the standard deduction along with the personal exemption.

The measure, House Bill 1049, also would increase a tax credit for low-income renters, the earned income tax credit, the food excise tax credit and a child and dependent care credit, while also creating a new maximum $500 credit for many public and private school teachers who spend their own money on school supplies.

The governor’s office, in written testimony supporting the bill, also said that leaving more money in the pockets of Hawaiʻi consumers will encourage more spending that helps support the state economy.

HB1049 has received encouragement in written testimony from about two dozen people and several nonprofit organizations supporting families and children, including the Hawaiʻi Appleseed Center for Law & Economic Justice, during a Feb. 14 hearing held by the House Committee on Economic Development and the House Committee on Education.