Nov 3, 2022 | Tax Research Insights
Hawaii has several tax credits that promote social welfare. More people claimed these credits during the Covid-19 pandemic, supporting the idea that these credits provide important economic support when Hawaii’s families are hurting the most. More Hawaii taxpayers...
Jun 27, 2022 | Tax Research Insights
There has been significant talk of a recession in the financial press. High levels of inflation have prompted the Federal Reserve (Fed) to take decisive action by raising the benchmark interest rates. Will the abrupt change in monetary policy cause a recession? And if...
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...
Jan 1, 2022 | Tax Research Insights
The top five exemptions account for 60% of all exemptions claimed. The General Excise & Use Tax (GET), which is a very broad gross receipts tax, is the largest tax type in Hawaii. GET is a tax on income from almost all business activities, including wholesaling,...
Jan 1, 2022 | Tax Research Insights
This post highlights some interesting trends that emerged in the 2019 Report Tax Credits Claimed by Hawaii Taxpayers. Figure 5 from the report (see below) shows how welfare enhancing tax credits varies by income and some interesting results emerge: The Refundable...
