In Hawaii, Aloha Now Means “Goodbye”

from Committee to Unleash Prosperity, August 25, 2026

When our liberal friends say that the massive migration to red states is happening because of the weather, we always point to two of the most idyllic places on the planet: California and… Hawaii.

The Wall Street Journal explored why so many young people are fleeing Hawaii. It discovered that “Hawaii lost a greater share of its population last year than any state except Vermont.” And going back to 2010, Hawaii’s population growth has been half the U.S. average. A classic case of people voting with their feet.

But the WSJ completely overlooked WHY people are leaving: Bad policies. Consider the following metrics for Hawaii, from the Rich States, Poor States report that ranks policies in all 50 states (1 is best, 50 is worst):

• Personal income tax: 46th
• Sales tax burden: 50th
• Tax burden excluding personal income, corporate income, property, sales, and severance: 48th
• Minimum wage: 45th
• Workers compensation costs: 50th

Also, Hawaii is not a right to work state and it levies estate taxes. Its top personal income tax rate ranks higher than any other state except California and New York.

Given these policies, why would any right-thinking entrepreneur, or growing business, locate in Hawaii? And how did the Wall Street Journal miss this?

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April 2026: Rich States Poor States--Hawaii 43rd: Tax policy largely determines states’ economic competitiveness

Aug 2026: WSJ—Hawaii Tourism is Dying: “the state shouldn’t try to predict which industries or businesses will succeed”