Tuesday, June 6, 2023
Hawai'i Free Press

Current Articles | Archives

Monday, March 12, 2018
DBEDT: Hawaii Households get $710M from Republican Tax Cuts
By News Release @ 11:41 PM :: 4614 Views :: Hawaii Statistics, Taxes

The Impact of the Federal Tax Cut and Jobs Act on Hawaii Households

From DBEDT, March, 2018

Executive Summary

The Tax Cut and Jobs Act (TCJA) was signed into law December 22, 2018. The TCJA has many provisions which will impact Hawaii individual taxpayers in different ways depending on their filing status, income bracket, home ownership status, and family composition. This report examines the impact of the TCJA on Hawaii individual taxpayers’ federal income tax returns using statistics compiled by the IRS for Hawaii taxpayers. While the results vary by income group and filing status, a majority of Hawaii taxpayers will pay less in federal income taxes in years 2018 through 2025, after which most of the provisions expire. The analysis of the TCJA of Hawaii residents’ federal individual income tax liability for tax year 2018 shows that:

On average, the provisions of the TCJA will result in lower tax liabilities for most income groups in Hawaii. The higher income groups will see increases in tax liability.

• The substantial increase in the standard deduction will benefit the lower to mid-range income groups.

• In general, taxpayers filing jointly will benefit more under the TCJA than single filers and head of household filers.

• The standard deduction nearly doubles for all filing status categories under the TCJA. A significant number of filers in the mid-income range will shift their filing behavior from itemized to standard deduction due to the increase in the standard deduction.

• Under the TCJA personal exemptions are eliminated. However, this is usually more than offset by the doubling of the standard deduction as noted above.

• The TCJA doubles the child tax credit from $1,000 to $2,000, which will benefit Hawaii households with children. Furthermore, there is an increase in the refundable portion up to $1,400.

• A majority of the higher income groups will continue to itemize their deductions and, thus, will not benefit from the increase in standard deductions.

• Higher income groups will be impacted by the $10,000 cap on state and local tax (SALT) deductions, with those in the top two income brackets being hit especially hard.

• While a majority of Hawaii’s individual taxpayers will have a reduction in federal income tax liability, the two AGI categories above $500,000 will experience an increase in their tax liability for the 2018 tax year, mostly due to the SALT cap provision.

It should be noted that this analysis does not include corporations, which will see a substantial decrease in their federal tax liability, as the corporate tax rate of 35 percent (top bracket over $10 million) is reduced to a flat rate of 21 percent.

In summary, the decrease in the tax liability for the lower to mid-income ranges is primarily due to the reduction in the applicable tax rates, the increase in the standard deduction, and the doubling of the child tax credit. For the top two income categories, a large portion of these benefits are offset by the $10,000 cap on the SALT deduction. The table below provides an overall estimate by income category based weighted averages for individuals and the total for each respective category. Under the TCJA for tax year 2018, the aggregate federal income tax liability will be an estimated $710.06 million less than 2017 under the previous law. This does not include corporate income tax.

read … Full Report


PBN: Hawaii households to see $710M reduction in federal individual income tax for 2018

  *   *   *   *   *

Flashback December 21, 2017: Tax Cut Makes Hawaii Democrats Bitter, Spiteful

HTH: …“When you look at the broad position as opposed to the narrow ones, it’s overall going to be helpful in that it will allow the middle class to take home more money,” said Tom Yamachika, president of the Tax Foundation of Hawaii. “And hopefully it will stimulate the economy. What kind of effect (it will have) we don’t know until we see in two or three years what’s actually happened.”

State Sen. Josh Green, D-Kona, Ka‘u, agreed with Yamachika that GOP projections of economic growth remain largely speculative, but that’s where the consensus ended.

“This is as bad and cynical and mean-spirited a bill as I’ve ever seen,” Green said. “Whoever says that this is good for Hawaii families should turn in their credentials. They don’t know what they’re talking about.”….

read … Cynical LOL!

Mean-spirited cynicism:


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Back da Blue Hawaii

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute


Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui


Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii


National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport


OHA Lies

Opt Out Today


Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii



Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii


Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu


West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii