Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, May 3, 2023
Hawaii gets low marks in business tax ranking
By Selected News Articles @ 3:02 AM :: 2116 Views :: Hawaii Statistics, Small Business, Taxes

Hawaii gets low marks in business tax ranking

by Merrilee Gasser, The Center Square May 2, 2023

(The Center Square) – Hawaii’s individual income tax scored among the poorest in a new report.

As a part of the Tax Foundation’s 2023 State Business Tax Climate Index, states’ individual income taxes were one of five major components examined across the board.

Hawaii ranked 46th, where it has stayed since 2021. It ranked 47th in 2020.

“States that score poorly on this component tend to have high tax rates and very progressive bracket structures,” the report said, adding those poor scoring states also tend to fail to index their brackets, exemptions, and deductions for inflation, among other shortcomings.

For its overall business tax climate, Hawaii scored fairly well for its corporate tax and sales tax. However, it was in the bottom half of states for property taxes, unemployment insurance taxes, and individual taxes.

“High marginal rates adversely affect labor output and investment and can influence location decision-making, especially in an era of enhanced mobility, where it is easier for individuals to move without jeopardizing their current job, or without limiting the scope of their search for a new one,” the report said.

Many states can’t afford to lean into policy that harms their labor force as many are dealing with severe workforce shortages, the U.S. Chamber of Commerce reported this week.

While Hawaii’s labor shortage is far less severe than other states, it still only has 78 available workers for every 100 open jobs, according to the chamber.

The state currently has 37,000 job openings, 23,584 unemployed workers, and a labor force participation rate of just over 60%. The hiring rate is sitting at 4.3%, the U.S. Chamber of Commerce said.

“There is a national worker shortage affecting the nation, and many states are feeling the impact,” said the chamber. “The vast majority of states have more job openings today than it had before the pandemic, while labor force participation remains below pre-pandemic levels.”

Hawaii has a graduated-rate income tax that ranges from 1.4% to 11%. Its state and local individual income tax collections per capita is $2,327, according to the Tax Foundation.

Other states that received the lowest scores for individual income taxes were New York, California, New Jersey, and Connecticut. High-ranking states included those with no individual income tax, like Alaska, Florida, South Dakota, and Wyoming.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

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

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

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

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

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

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

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

SenatorFong.com

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

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT