SENATE JUDICIARY COMMITTEE PASSES WEALTH ASSET TAX BILL FOR ASSETS ABOVE $20 MILLION

News Release from Senate Democratic Caucus, Thursday, January 30, 2025

HONOLULU – The Hawaiʻi State Senate Committee on Judiciary passed Senate Bill 313 in a hearing this morning, which would implement a wealth asset tax for assets valued over $20 million.

(IQ Test: How long will it take for legislators to lower that threshhold?)

"SB 313 is a significant step towards creating a fairer, more equitable economy,” said Judiciary Committee Chair Karl Rhoads, who introduced the bill. “This legislation pushes for those with the greatest resources to contribute their fair share to the prosperity of our state. By moving this bill forward, we are tackling inequality head-on and working to build an economy that benefits all, especially those who have been left behind for far too long."

(TRANSLATION: We're going to steal your assets and use them to pay for DEI programs, sex change operations, free meth pipes and needles.)

If the bill becomes law, individuals with assets worth more than $20 million would pay a state tax on the value of their assets above that amount. For example, if someone has $25 million in assets, they would pay the tax on the $5 million that exceeds the $20 million threshold. The tax rate would be 1%. The Committee adopted Chair Rhoads’ recommendation to assess the tax every three years.

(IQ Test: How long will it take Legislators to bump up that 1%?)

(REALITY:  If the bill becomes law, individuals with assets will declare Hawaii to not be their legal domicile.  They will hide assets in shell corporations.  Only the blue-collar rich, who don't know how to hide assets, will suffer.)

SB 313 would include assets like real estate, stocks, bonds, cash, art and collectibles, in the calculation. Those subject to the wealth asset tax would report their assets to the Department of Taxation and pay the tax at the same time they file their regular state income taxes. If passed, the bill as amended would be applied to taxes due after December 31, 2029.

(REALITY: Valuation of assets by what measure?  The ONLY valid valuation is the one that is backed by a purchaser's cash.  If you don't sell some bubble stock at the top, after it crashes down to zero, you could end up owing more than your assets are worth.  On the other hand, I believe that a Democratic Socialists of America membership card is worth $25M.  I propose my appraisal of $25M DSA card valuation be amended into the text of SB313 so DSAers will all have to cough up $50,000 every year.)

Senator Rhoads has introduced similar legislation in the past – SB 925 in 2023, and SB 2389 in 2022.

(TRANSLATION: SB313 is also doomed.)

Massachusetts has already implemented a similar state wealth tax, with the money collected aimed at funding transportation and education programs, and other states are considering similar legislation.

(TRANSLATION: Pay for more rail.)

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REALITY: Federal Court Ruling: Sen. Karl Rhoads participated in Honolulu County Council Kickback scheme

SB313: Text, Status