Hawaiʻi debates progressive taxes, Oʻahu ferry, green fuel

A tax bill aimed at helping the islands' most economically vulnerable would raise taxes for wealthier families while giving tax credits to those with lower incomes. Lawmakers in the Senate Committee on Ways and Means plan to vote on the proposal Tuesday.

The bill would provide a tax credit to low-income renters ranging from $50 to $150 per exemption. It also would establish an earned income tax credit, which advocates have been pushing for in Hawaiʻi for years.

To pay for the credits, the bill seeks to restore higher tax rates on high-income earners to levels that were in effect until the end of 2015.

The Hawaiʻi Appleseed Center for Law & Economic Justice is pushing the proposal, saying the state has the highest cost of living in the nation after adjusting for inflation and that Hawaiʻi is among a minority of states that pushes low-income people deeper into poverty with taxes.