Jun 22, 2022 | Tax Research Insights
Social welfare tax credits often have an income-based limitation. What happens when income limits remain unchanged for long periods of time? Let’s look at two examples here Tax credit for Low-Income Household Renters. The tax credit is computed by multiplying $50 by...
May 11, 2022 | Tax Research Insights
Corporations are the main contributors of Hawaii business receipts. In tax year of 2019, corporations contributed 78% of Hawaii business receipts. There are two types of corporations: those operating only in the State of Hawaii and those that operate nationally (i.e....
May 11, 2022 | Tax Research Insights
Higher income groups pay more in taxes relative to their income in Hawaii. A progressive tax structure is defined as one where higher income taxpayers pay a larger percentage of their income in taxes. By this metric, Hawaii’s individual income tax is clearly...
Mar 1, 2022 | Tax Research Insights
The Food/Excise Tax Credit is the largest tax credit in the State promoting social welfare. In the 2019, there were 240,158 claims worth $28.4 million. Figure 6, Tax Credits Claimed by Hawaii Taxpayers (copied below), shows how the credit has evolved overtime. The...
Jan 1, 2022 | Tax Research Insights
A business is classified by its entity size Businesses can legally organize themselves in different ways. C corporations have more flexibility in their activities, but they are required to pay corporate income tax. S corporations and partnerships are pass-through...
