Bill Text: HI HB1307 | 2016 | Regular Session | Introduced

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Bill Title: Taxation; Income Tax Rates

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced - Dead) 2015-12-17 - Carried over to 2016 Regular Session. [HB1307 Detail]

Download: Hawaii-2016-HB1307-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	1307
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to fair taxation.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that income inequality disproportionately affects low-income residents by limiting their opportunities for economic advancement.  Hawaii residents living in poverty pay more in state taxes than all but three other states, and the tax rate for low and moderate income households is among the highest in the nation.

     According to the study "Who Pays: A Distribution Analysis of Tax Systems in All 50 States, Fifth Edition" (Institute of Taxation & Economic Policy, January 2015), Hawaii households with income in the lowest twenty per cent spend 13.4 per cent of their income on taxes, while Hawaii households with income in the top one per cent pay only seven per cent of their income on taxes, after factoring in major state and local taxes, including personal and corporate income taxes, property taxes, and sales and excise taxes.

     The legislature also finds that, in order to achieve fair taxation, all taxes need to be considered.  Higher income tax brackets are currently not in parity with low income tax brackets.

     The purpose of this Act is to change income tax rates for taxable years beginning after December 31, 2015, to establish greater income equality for Hawaii residents.

     SECTION 2.  Section 235-51, Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c) to read as follows:

     "(a)  There is hereby imposed on the taxable income of (1) every taxpayer who files a joint return under section 235-93; and (2) every surviving spouse a tax determined in accordance with the following table:

     In the case of any taxable year beginning after December 31, 2001:

          If the taxable income is:    The tax shall be:

          Not over $4,000              1.40% of taxable income

          Over $4,000 but              $56.00 plus 3.20% of

            not over $8,000              excess over $4,000

          Over $8,000 but              $184.00 plus 5.50% of

            not over $16,000             excess over $8,000

          Over $16,000 but             $624.00 plus 6.40% of

            not over $24,000             excess over $16,000

          Over $24,000 but             $1,136.00 plus 6.80% of

            not over $32,000             excess over $24,000

          Over $32,000 but             $1,680.00 plus 7.20% of

            not over $40,000             excess over $32,000

          Over $40,000 but             $2,256.00 plus 7.60% of

            not over $60,000             excess over $40,000

          Over $60,000 but             $3,776.00 plus 7.90% of

            not over $80,000             excess over $60,000

          Over $80,000                 $5,356.00 plus 8.25% of

                                         excess over $80,000.

     In the case of any taxable year beginning after December 31, 2006:

          If the taxable income is:    The tax shall be:

          Not over $4,800              1.40% of taxable income

          Over $4,800 but              $67.00 plus 3.20% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $221.00 plus 5.50% of

            not over $19,200             excess over $9,600

          Over $19,200 but             $749.00 plus 6.40% of

            not over $28,800             excess over $19,200

          Over $28,800 but             $1,363.00 plus 6.80% of

            not over $38,400             excess over $28,800

          Over $38,400 but             $2,016.00 plus 7.20% of

            not over $48,000             excess over $38,400

          Over $48,000 but             $2,707.00 plus 7.60% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $4,531.00 plus 7.90% of

            not over $96,000             excess over $72,000

          Over $96,000                 $6,427.00 plus 8.25% of

                                         excess over $96,000.

     In the case of any taxable year beginning after December 31, 2008:

          If the taxable income is:    The tax shall be:

          Not over $4,800              1.40% of taxable income

          Over $4,800 but              $67.00 plus 3.20% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $221.00 plus 5.50% of

            not over $19,200             excess over $9,600

          Over $19,200 but             $749.00 plus 6.40% of

            not over $28,800             excess over $19,200

          Over $28,800 but             $1,363.00 plus 6.80% of

            not over $38,400             excess over $28,800

          Over $38,400 but             $2,016.00 plus 7.20% of

            not over $48,000             excess over $38,400

          Over $48,000 but             $2,707.00 plus 7.60% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $4,531.00 plus 7.90% of

            not over $96,000             excess over $72,000

          Over $96,000 but             $6,427.00 plus 8.25% of

            not over $300,000            excess over $96,000

          Over $300,000 but            $23,257.00 plus 9.00% of

            not over $350,000            excess over $300,000

          Over $350,000 but            $27,757.00 plus 10.00% of

            not over $400,000            excess over $350,000

          Over $400,000                $32,757.00 plus 11.00% of

                                         excess over $400,000.

     In the case of any taxable year beginning after December 31, 2015:

          If the taxable income is:    The tax shall be:

          Not over $28,800             6.70% of taxable income

          Over $28,800 but             $1,930.00 plus 7.10% of

            not over $48,000             excess over $28,800

          Over $48,000 but             $3,293.00 plus 7.50% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $5,093.00 plus 7.90% of

            not over $96,000             excess over $72,000

          Over $96,000 but             $6,989.00 plus 8.25% of

            not over $300,000            excess over $96,000

          Over $300,000 but            $23,819.00 plus 11.00% of

            not over $350,000            excess over $300,000

          Over $350,000 but            $29,319.00 plus 13.00% of

            not over $400,000            excess over $350,000

          Over $400,000                $35,819.00 plus 15.00% of

                                         excess over $400,000.

     (b)  There is hereby imposed on the taxable income of every head of a household a tax determined in accordance with the following table:

     In the case of any taxable year beginning after December 31, 2001:

          If the taxable income is:    The tax shall be:

          Not over $3,000              1.40% of taxable income

          Over $3,000 but              $42.00 plus 3.20% of

            not over $6,000              excess over $3,000

          Over $6,000 but              $138.00 plus 5.50% of

            not over $12,000             excess over $6,000

          Over $12,000 but             $468.00 plus 6.40% of

            not over $18,000             excess over $12,000

          Over $18,000 but             $852.00 plus 6.80% of

            not over $24,000             excess over $18,000

          Over $24,000 but             $1,260.00 plus 7.20% of

            not over $30,000             excess over $24,000

          Over $30,000 but             $1,692.00 plus 7.60% of

            not over $45,000             excess over $30,000

          Over $45,000 but             $2,832.00 plus 7.90% of

            not over $60,000             excess over $45,000

          Over $60,000                 $4,017.00 plus 8.25% of

                                         excess over $60,000.

     In the case of any taxable year beginning after December 31, 2006:

          If the taxable income is:    The tax shall be:

          Not over $3,600              1.40% of taxable income

          Over $3,600 but              $50.00 plus 3.20% of

            not over $7,200              excess over $3,600

          Over $7,200 but              $166.00 plus 5.50% of

            not over $14,400             excess over $7,200

          Over $14,400 but             $562.00 plus 6.40% of

            not over $21,600             excess over $14,400

          Over $21,600 but             $1,022.00 plus 6.80% of

            not over $28,800             excess over $21,600

          Over $28,800 but             $1,512.00 plus 7.20% of

            not over $36,000             excess over $28,800

          Over $36,000 but             $2,030.00 plus 7.60% of

            not over $54,000             excess over $36,000

          Over $54,000 but             $3,398.00 plus 7.90% of

            not over $72,000             excess over $54,000

          Over $72,000                 $4,820.00 plus 8.25% of

                                        excess over $72,000.

     In the case of any taxable year beginning after December 31, 2008:

          If the taxable income is:    The tax shall be:

          Not over $3,600              1.40% of taxable income

          Over $3,600 but              $50.00 plus 3.20% of

            not over $7,200              excess over $3,600

          Over $7,200 but              $166.00 plus 5.50% of

            not over $14,400             excess over $7,200

          Over $14,400 but             $562.00 plus 6.40% of

            not over $21,600             excess over $14,400

          Over $21,600 but             $1,022.00 plus 6.80% of

            not over $28,800             excess over $21,600

          Over $28,800 but             $1,512.00 plus 7.20% of

            not over $36,000             excess over $28,800

          Over $36,000 but             $2,030.00 plus 7.60% of

            not over $54,000             excess over $36,000

          Over $54,000 but             $3,398.00 plus 7.90% of

            not over $72,000             excess over $54,000

          Over $72,000 but             $4,820.00 plus 8.25% of

            not over $225,000            excess over $72,000

          Over $225,000 but            $17,443.00 plus 9.00% of

            not over $262,500            excess over $225,000

          Over $262,500 but            $20,818.00 plus 10.00% of

            not over $300,000            excess over $262,500

          Over $300,000                $24,568.00 plus 11.00% of

                                         excess over $300,000.

     In the case of any taxable year beginning after December 31, 2015:

          If the taxable income is:    The tax shall be:

          Not over $21,600             6.70% of taxable income

          Over $21,600 but             $1,447.00 plus 7.10% of

            not over $36,000             excess over $21,600

          Over $36,000 but             $2,469.00 plus 7.50% of

            not over $54,000             excess over $36,000

          Over $54,000 but             $3,819.00 plus 7.90% of

            not over $72,000             excess over $54,000

          Over $72,000 but             $5,241.00 plus 8.25% of

            not over $225,000            excess over $72,000

          Over $225,000 but            $17,864.00 plus 11.00% of

            not over $262,500            excess over $225,000

          Over $262,500 but            $21,989.00 plus 13.00% of

            not over $300,000            excess over $262,500

          Over $300,000                $28,864.00 plus 15.00% of

                                         excess over $300,000.

     (c)  There is hereby imposed on the taxable income of (1) every unmarried individual (other than a surviving spouse, or the head of a household) and (2) on the taxable income of every married individual who does not make a single return jointly with the individual's spouse under section 235-93 a tax determined in accordance with the following table:

     In the case of any taxable year beginning after December 31, 2001:

          If the taxable income is:    The tax shall be:

          Not over $2,000              1.40% of taxable income

          Over $2,000 but              $28.00 plus 3.20% of

            not over $4,000              excess over $2,000

          Over $4,000 but              $92.00 plus 5.50% of

            not over $8,000              excess over $4,000

          Over $8,000 but              $312.00 plus 6.40% of

            not over $12,000             excess over $8,000

          Over $12,000 but             $568.00 plus 6.80% of

            not over $16,000             excess over $12,000

          Over $16,000 but             $840.00 plus 7.20% of

            not over $20,000             excess over $16,000

          Over $20,000 but             $1,128.00 plus 7.60% of

            not over $30,000             excess over $20,000

          Over $30,000 but             $1,888.00 plus 7.90% of

            not over $40,000             excess over $30,000

          Over $40,000                 $2,678.00 plus 8.25% of

                                         excess over $40,000.

     In the case of any taxable year beginning after December 31, 2006:

          If the taxable income is:    The tax shall be:

          Not over $2,400              1.40% of taxable income

          Over $2,400 but              $34.00 plus 3.20% of

            not over $4,800              excess over $2,400

          Over $4,800 but              $110.00 plus 5.50% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $374.00 plus 6.40% of

            not over $14,400             excess over $9,600

          Over $14,400 but             $682.00 plus 6.80% of

            not over $19,200             excess over $14,400

          Over $19,200 but             $1,008.00 plus 7.20% of

            not over $24,000             excess over $19,200

          Over $24,000 but             $1,354.00 plus 7.60% of

            not over $36,000             excess over $24,000

          Over $36,000 but             $2,266.00 plus 7.90% of

            not over $48,000             excess over $36,000

          Over $48,000                 $3,214.00 plus 8.25% of

                                         excess over $48,000.

     In the case of any taxable year beginning after December 31, 2008:

          If the taxable income is:    The tax shall be:

          Not over $2,400              1.40% of taxable income

          Over $2,400 but              $34.00 plus 3.20% of

            not over $4,800              excess over $2,400

          Over $4,800 but              $110.00 plus 5.50% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $374.00 plus 6.40% of

            not over $14,400             excess over $9,600

          Over $14,400 but             $682.00 plus 6.80% of

            not over $19,200             excess over $14,400

          Over $19,200 but             $1,008.00 plus 7.20% of

            not over $24,000             excess over $19,200

          Over $24,000 but             $1,354.00 plus 7.60% of

            not over $36,000             excess over $24,000

          Over $36,000 but             $2,266.00 plus 7.90% of

            not over $48,000             excess over $36,000

          Over $48,000 but             $3,214.00 plus 8.25% of

            not over $150,000            excess over $48,000

          Over $150,000 but            $11,629.00 plus 9.00% of

            not over $175,000            excess over $150,000

          Over $175,000 but            $13,879.00 plus 10.00% of

            not over $200,000            excess over $175,000

          Over $200,000                $16,379.00 plus 11.00% of

                                         excess over $200,000.

     In the case of any taxable year beginning after December 31, 2015:

          If the taxable income is:    The tax shall be:

          Not over $14,400             6.70% of taxable income

          Over $14,400 but             $965.00 plus 7.10% of

            not over $24,000             excess over $14,400

          Over $24,000 but             $1,647.00 plus 7.50% of

            not over $36,000            excess over $24,000

          Over $36,000 but             $2,547.00 plus 7.90% of

            not over $48,000             excess over $36,000

          Over $48,000 but             $3,495.00 plus 8.25% of

            not over $150,000            excess over $48,000

          Over $150,000 but            $11,910.00 plus 11.00% of

            not over $175,000            excess over $150,000

          Over $175,000 but            $14,660.00 plus 13.00% of

            not over $200,000            excess over $175,000

          Over $200,000                $17,910.00 plus 15.00% of

                                         excess over $200,000."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2015; provided that the amendments made to section 235-51(a), (b), and (c), Hawaii Revised Statutes, by section 2 of this Act shall not be repealed when section 235-51(a), (b), and (c), Hawaii Revised Statutes, is reenacted on December 31, 2015, by section 6 of Act 60, Session Laws of Hawaii 2009, as amended by section 4 of Act 97, Session Laws of Hawaii 2011.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Taxation; Income Tax Rates

 

Description:

Changes income tax rates after 12/31/2015.

 

 

 

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