A bill to repeal the corporate income tax is set for a public hearing before the committee for Economic Development and Technology on Wednesday, February 4, 2015 at 2:45pm at the Capitol Building, Room 016.
The Public are urged to come and support SB958.
News Release from Office of Sen Sam Slom, February 2, 2015
HONOLULU—Senator Sam Slom has introduced SB958, a bill to repeal the corporate income tax. The Committee for Economic Development and Technology will hold its first public hearing to consider the bill this Wednesday, February 4 at 2:45pm at the Capitol Building, Room 016.
Senator Slom says "The revenue brought to the state by the corporate income tax is not enough to justify how much it stifles small businesses and local entrepreneurship. Repealing the tax will give a much needed boost to the local economy, by allowing people to grow and expand their businesses. We are hoping this will in turn promote job growth and lower the price the people of Hawaii must pay for goods and services."
Opponents argue that the corporate income tax should stay in place to ensure that businesses pay their fair share of taxes.
"One argument I often hear for keeping the corporate income tax in place is how much money it brings to the state, which is about $96 million annually," said Senate Minority budget director Paul Harleman. "But to put that in perspective, that is only 2% of state general fund revenues. It is simply not a significant source of income for the state."
Proponents of repealing the corporate income tax predict that relief from the tax will benefit consumers by lowering the cost of goods and services.
To view SB958, click here. The public is invited to submit written testimony online by clicking here, or visiting www.capitol.hawaii.gov, searching for SB958 using the "Search by Measure" feature and clicking "Submit Testimony."
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Also set for hearing on Wednesday is SB946, a bill to remove the general excise tax on business-to-business transactions. The public is encouraged to get involved and submit written testimony to the committee here or by using the "Search by Measure" feature outlined above.
According to the Council on State Taxation, Hawaii businesses pay 40% of the GET which amounts to $1.2 billion dollars.
Senator Slom says "Hawaii's businesses are overburdened. It is time to ease the burden, and make the state of Hawaii a better place to do business."
As a reminder to the public, the most effective testimony is a combination of written and oral testimony. Written testimony must be submitted 24 hours before the hearing, but if that deadline has passed, individuals are welcome to attend the hearing and give their testimony in person.
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