Hawaii Joins the Brigade of Blue States Socking It to the Rich

from Committee to Unleash Prosperity, May 26, 2026

Maybe the new plea from shrinking blue states should be: stop us before we tax again. They just can’t seem to help themselves.

Hawaii becomes the 4th blue state this year to raise their highest income tax rate. Are they TRYING to drive out wealth?

Hawaii’s new top tax rate is 13% on income earned above $1 million a year. It now nearly ties California’s infamous 13.3% highest marginal tax rate. New York City is at 14.776%, city plus state.

Who will win the race to 20%?

Hawaii has lost population in five of the last six years. Its economy has been stagnant for decades, weighed down by a bloated welfare state that expands through both tourist booms and busts. The University of Hawaii reports, “since 1990, Hawaii’s real per capita growth rate has stagnated at a compound annual rate of just 0.6 to 0.7%.”

What’s really disheartening is that all three of the state Senate’s GOP members voted for the tax hike along with six of the House’s ten Republicans. That’s how bad the Republicans are in Hawaii!

Hawaii was known as the “Paradise of the Pacific” when it became the 50th state nearly 70 years ago. It’s a wonderful place to visit, but we wouldn’t want to live there.