Thursday, December 3, 2020
Hawai'i Free Press

Current Articles | Archives

Wednesday, March 9, 2011
Marumoto: Pension Tax threshold could be dropped to $75K at end of session
By Video @ 7:29 PM :: 6218 Views :: Maui County, Education K-12, Energy, Environment

Reps Pine and Marumoto Oppose Taxing Pensions:

*   *   *   *   *

Representative Barbara Marumoto's Floor Speech

HB 1092- Taxation – March 8, 2011

Thank you Mr. Speaker, I rise in opposition to this measure which imposes a state tax on pensions.

When I spoke on this measure a couple weeks ago, my comment was that this bill in its original form, and the $37,500 threshold at which it proposed to begin the tax, was  too low "almost cruel." At the time, I was referencing the low threshold, and one of my concerns with this bill as currently drafted is that, (while the threshold is now higher, $100,000,) it opens the door to taxing the pensions of those with a lower AGI in the future.  It could slip down to $75,000 or lower before the end of session or in future sessions.

The fact is that this bill will tax our seniors, those on a fixed income, with less opportunities to adjust to our rapidly rising costs-of-living.  Ms. Barbara Stanton of the American Association of Retired Persons said it best in this Sunday's Star-Advertiser when she said that this "came as a shock to Hawaii's seniors whose fixed incomes are no match for rising costs." According to her, the consumer price index shows a 70 percent increase for Honolulu over the past 20 years. With costs continuing to rise, it is unfair to take from those who were promised tax free pensions decades ago.

Ms. Stanton's article also raised some important legal concerns that this body should be well-aware of before it moves forward with this legislation. First, she points out, Federal law prohibits taxing pension income of nonresidents living in Hawaii (Public Law 104-95). Second, the Hawaii Constitution (Article XVI, Section 2) states that accrued benefits of retirees in the state retirement system shall not be diminished or impaired. These are potential legal problems that would diminish the gains this bill claims to generate.

*   *   *   *   *

Pension Tax Passes: “One day, with inflation, all pensions will be taxed”

KITV: Gov. Neil Abercrombie originally proposed taxing the pension income of retired single people who earned $37,500 a year or married retirees who make $75,000 combined, a proposal that was attacked by the AARP and other groups representing retirees.

Tuesday, the State House approved the pension tax for much higher income retirees. Single seniors would have to earn $100,000 and married couples would have to make $200,000 before the pension tax would kick in.

"It only affects about 3,000 taxpayers and these are taxpayers in very, very high incomes," said State Rep. Isaac Choy (D-Manoa, Moiliili), an accountant who spoke in favor of the pension tax during debate on the State House floor.

"Because we set the limit so high, one day, with inflation, all pensions will be taxed. But that date will be 15 to 20 years in the future. I believe that's enough warning for anybody," Choy added. (Google: “Boiling Frog”)

All eight Republicans in the State House voted against the pension tax, including State Rep.George Fontaine of Maui, who's a retired police officer and pension recipient.

“Are we just gonna say 'Well, it's OK, because it's the rich retirees and everybody else is safe.’ Now that's not fair either. It's like we'll take from the rich and pay for the bills and that's not correct," Fontaine said.

Shapiro: Will a higher threshold make the pension tax palatable?

AP: Hawaii legislators advance taxes on pensions for the wealthy, liquor and timeshares

read more


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

ACA Signups Hawaii


Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni


Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DVids Hawaii

E Hana Kakou Kelii Akina


Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

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

Heritage Foundation



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes


Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii


National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii


OHA Lies

Opt Out Today

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii


Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii