pzarquon
January 18th, 2007, 03:57 PM
We've talked a lot about skyrocketing county property taxes (http://www.hawaiithreads.com/showthread.php?t=11409) lately... but with the state's coffers overflowing with a record surplus, it's obvious that some sort of relief is due from the legislature as well -- including a Constitutionally mandated refund.
After Hanabusa insisted that Hawaii needs to "define sustainability" (I guess the dictionary doesn't cut it), Lingle groused that lawmakers should think about tax relief first. And today, she put a whole bundle of ideas on the table.
Lingle unveils plan for tax relief, refunds (http://www.hawaiinews.com/archives/politics/000438.shtml)
Gov. Linda Lingle today announced a package of proposals to bring tax relief to Hawaii residents struggling with the state's high cost of living. The various proposals, submitted under the banner "Helping Those Who Need It Most," add up to a total of $346 million in tax relief over two years. Noting that the state Constitution calls for a tax refund given the state's two-year budget surplus, Lingle called on the Legislature to approve a $100 per person tax refund for families with incomes below $100,000 ($25 per person for those earning more). Another proposal would allow the state to adjust tax brackets every year to adjust for inflation.
Other measures in the proposed tax relief package would exempt "essential foods" (including milk, eggs, cereal, juices, and infant formula) from the state's General Excise Tax, increase the standard deduction from $4,000 to $7,500 for married couples (or from $2,000 to $3,750 for single people), offer a $1,000 per child exemption for families earning $100,000 a year or less (or a $500 exemption for families earning $100,000 to $200,000 annually), and increase the dependent care services credit.
The exemption for "basic foods" is an interesting one. Though I can see some nightmares in defining what qualifies as dairy, why some vegetables count while others don't, and the like. I imagine they'll work from the criteria they use to select foods for the WIC program. Though if they overlap extensively, the tax savings may be pretty limited for Hawaii's most needy.
More details on the various proposals at the link above. About time? Not enough? Has Lingle left enough wiggle room to argue for tax relief but also ensure better-than-disastrous negotiations with unions who will no doubt be seeking considerable wage increases?
After Hanabusa insisted that Hawaii needs to "define sustainability" (I guess the dictionary doesn't cut it), Lingle groused that lawmakers should think about tax relief first. And today, she put a whole bundle of ideas on the table.
Lingle unveils plan for tax relief, refunds (http://www.hawaiinews.com/archives/politics/000438.shtml)
Gov. Linda Lingle today announced a package of proposals to bring tax relief to Hawaii residents struggling with the state's high cost of living. The various proposals, submitted under the banner "Helping Those Who Need It Most," add up to a total of $346 million in tax relief over two years. Noting that the state Constitution calls for a tax refund given the state's two-year budget surplus, Lingle called on the Legislature to approve a $100 per person tax refund for families with incomes below $100,000 ($25 per person for those earning more). Another proposal would allow the state to adjust tax brackets every year to adjust for inflation.
Other measures in the proposed tax relief package would exempt "essential foods" (including milk, eggs, cereal, juices, and infant formula) from the state's General Excise Tax, increase the standard deduction from $4,000 to $7,500 for married couples (or from $2,000 to $3,750 for single people), offer a $1,000 per child exemption for families earning $100,000 a year or less (or a $500 exemption for families earning $100,000 to $200,000 annually), and increase the dependent care services credit.
The exemption for "basic foods" is an interesting one. Though I can see some nightmares in defining what qualifies as dairy, why some vegetables count while others don't, and the like. I imagine they'll work from the criteria they use to select foods for the WIC program. Though if they overlap extensively, the tax savings may be pretty limited for Hawaii's most needy.
More details on the various proposals at the link above. About time? Not enough? Has Lingle left enough wiggle room to argue for tax relief but also ensure better-than-disastrous negotiations with unions who will no doubt be seeking considerable wage increases?