Hawaii Legislature Proposes Changes to State Income Tax Plan Affecting Millionaires and Tax Credits
The Hawaii Legislature is considering a proposal to modify the state's income tax plan, which initially introduced significant tax cuts for residents, including high-income earners. The proposed changes aim to continue tax reductions for most brackets but pause future cuts for the top four income levels, affecting individuals earning over $175,000 and couples earning over $350,000 annually. Additionally, a new tax bracket for millionaire households is proposed, taxing income over $1 million for joint-filers and $500,000 for single-filers at 13%. The proposal also plans to phase out certain tax credits, including the Capital Goods Tax Credit by 2028 and the Renewable Energy Tax Credit by 2031. The measure is part of a broader effort to stabilize the state's finances, which are projected to face a $400 million shortfall by 2032 due to reduced federal funding. 
