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State tax revenue forecast improving; 5% growth predicted

By Star-Advertiser staff

LAST UPDATED: 12:58 p.m. HST, Jan 03, 2013

The state Council on Revenues today agreed to increase the state’s tax collection forecast, another positive sign that the economic recovery has taken hold.

The council increased the forecast for fiscal year 2013 to 5.1 percent growth, up from 4.9 percent in September. The council raised the forecast for fiscal year 2014 to 6.8 percent growth, up from the 3.9 percent.

The state Department of Taxation estimates that the new forecast means an additional $10.3 million for this fiscal year, which ends in June, and $162.3 million for next fiscal year.

The Abercrombie administration and state House and Senate lawmakers will consider the forecast when drafting the state’s new two-year budget and six-year financial plan.

A rebound in tourism has driven the state’s economic recovery, but economists on the council believe that other sectors of the economy, such as housing and construction, are poised for growth.

Economists are concerned, however, about the financial impact of the state’s renewable energy tax credits, the debate over federal spending and debt reduction in Washington, D.C., and the potential loss of federal money because of the death of U.S. Sen. Daniel Inouye, D-Hawaii, the former chairman of the Senate Appropriations Committee.

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HonoluluHawaii wrote:
All i can say is that i hope Lingle does not pull off another investment that locks up one billion of the state's reserves. Oh, she is out of office. oh ok.
on January 3,2013 | 11:58AM
saywhatyouthink wrote:
Abercrombie sucks
on January 3,2013 | 03:34PM
Bumby wrote:
People be aware that the 2% payroll tax is kicking in. You will receive 2% less on your gross income beginning in January 2013. For every $100,000 of W2 wages to a family household that will be $2,000 less. Budget that in your monthly budget. Happy New year from the government. They have not cut spending which is a big reason why our tax rates will go back up in the future. The bigger the debt to the FEDS the more interest we pay as citizens of the U.S. Thus for the nation to become "pysically fit" we need to get this debt to be paid down. If not we will pay for it sooner than later, like Greece is today.
on January 3,2013 | 03:49PM
HD36 wrote:
Laughable, and they have the Inouye fiscal cliff article on the same day. This must be a precurser requisite to giving themselves's a raise and growing the government.
on January 3,2013 | 08:35PM
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