Thumbs Down: The 10 Worst States For High Earners
by Ashlea Ebeling, Forbes, February 21, 2017 (excerpts)
High earners who live in these taxing states can expect a big bill at tax time. It could get worse. In New York, Gov. Andrew Cuomo is calling to extend New York’s 2009 “temporary” millionaire’s income tax through 2020, and Assembly Democrats want a new 10% top rate for $100-million-plus earners. Hawaii stays on the list although it let a temporary 2009 tax hike with a top rate of 11% expire in 2015. These are the 10 most taxing states for the wealthy based on high-income tax rates and the income level at which the most punishing rate kicks in (calculated for a married couple in 2016)….
HAWAII - 8.25% over $96k. Hawaii exempts all Social Security benefits and some pension, 401(k) and IRA withdrawals from tax
Forbes: Blue State Blues: The Great Income Tax Divide
read … Thumbs Down
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HB209: Progressive Democrats Demand Massive Income Tax Hike on Small Business Owners
IM: On Thursday, the House Finance Committee took up the issue of the regressive tax system in Hawai`i.
HB 209 would expand the low income-household renters' income tax credit based on adjusted gross income and filing status, establish a state earned income tax credit, and restore the income tax rates for high income brackets that were repealed at the end of 2015. The bill was amended and passed unanimously. (Better Idea: 100% Tax on ‘Vacant Positions’)
Chair Luke noted that the testimony was an inch-and-a-half thick; some 100 plus testifiers supported passing the legislation (which would squeeze small business, thus making the poor, poorer.)….
There were at least two groups in opposition: Hawai`i Association of Realtors and the Chamber of Commerce Hawaii opposed Section 3. The Tax Foundation of Hawai`i expressed concerns.
The Chamber noted that part 3 “restores the income tax rates for high income brackets that were repealed on 12/31/15. The Chamber takes no position on the other substantive parts of the bill. …This bill adversely affects small businesses and would severely limit their ability to reinvest in their business, create jobs, and keep their small business running. Business owners already face many restrictions and regulations and this bill is just another challenge for small business owners in Hawaii to survive.”
HB209: Text, Status
read … Regressive