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Study: Hawaii has second-worst state tax system

By Erika Engle


Hawaii’s tax system ranks 49th out of 50 states for starting and growing a small business, according to the Small Business & Entrepreneurship Council.

The Wash., D.C.-based council ranked the 50 states according to the costs of their tax systems and placed Hawaii at No. 49, above only 50th-ranked California.

Among the SBE Council’s other 10 worst states, No. 41, Connecticut; No. 42, Oregon; No. 43, Minnesota; No. 44, New York; No. 45, Maine; No 46, Vermont; No. 47, Iowa, and No. 48, New Jersey.

The SBE Council’s "Business Tax Index 2013," ranks the 10 best state tax systems as: No. 1, Texas; No. 2, So. Dakota; No. 3, Nevada; No. 4, Wyoming; No. 5, Washington; No. 6, Florida; No. 7, Alabama; No. 8, Colorado; No. 9, Ohio, and No. 10, Alaska.


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livinginhawaii wrote:
You all keep voting back the incumbents so this is your fault. Do you not listen to Obama when he says that small business fuels our economy?
on April 17,2013 | 07:37AM
thevisitor967 wrote:
Small business do NOT fuel our economy. They hire hardly any employees and when they do--it's mostly family members anyway.
on April 17,2013 | 09:17AM
RetiredWorking wrote:
thevisitor, please educate yourself. You're thinking "mom and pop" stores. Small businesses can be up to 100 employees. Their average revenue is $3.6-$5 million. Small businesses comprise 99.7% of all businesses. You're WAY off the mark.
on April 17,2013 | 10:42AM
Kiyoshi2011 wrote:
@RetiredWorking, exactly! thevisitor967 has no idea how this world works. Small business is what makes the world go round.
on April 17,2013 | 11:44AM
cunfuzd4 wrote:
Retired - absolutely visitor has no concept of how the economy works. Unfortunately neither does the state and local municipalities here. Whereas in other states they try to grab as much of your profit as they can, here in Hawaii they try to tax you into oblivion for even THINKING of starting a business.
on April 17,2013 | 02:42PM
mrluke wrote:
What a surprise!!!
on April 17,2013 | 07:43AM
Sunny wrote:
The State of Hawaii is consistent!
on April 17,2013 | 10:37AM
Maneki_Neko wrote:
Hawaii's tax system crushes small business and acts as a major barrier to economic growth. Companies started here cannot wit to leave because they have to escape the tax burden. In response the politi-weasels try to create these whacko tax credit schemes that just generate more inequality and confusion. Frankly, taxing food and medicine is immoral.
on April 17,2013 | 07:54AM
sayer wrote:
Ouch! Interesting though it seems both Hawaii's and New Jersey's economies have fared relatively well despite "unfavorable" taxation.
on April 17,2013 | 08:01AM
Anonymous wrote:
I'm actually surprised we're not the worst.
on April 17,2013 | 08:11AM
serious wrote:
That is correct, we're #1 in so many other "worst" reports!!! Note the top ten states, five of them have no state income tax. The worst ones, mostly all Democratic--what a shock!!!!!!!
on April 17,2013 | 09:23AM
pj737 wrote:
I'm actually surprised we're not the worst.
on April 17,2013 | 08:13AM
FWS wrote:
Interesting that nearly all of the top 10 are Red States, while nearly all of the bottom 10 are Blue States. Perhaps it's time for a change here in Hawaii? If not, all we will have left will be the big box mainland stores that can afford Hawaii's high taxes. Wonder what the new name for the International Market Place will be--perhaps Wal-Mart?
on April 17,2013 | 08:17AM
serious wrote:
Yes, that is a problem, but the Jones Act has more impact on us than the taxes. Everything is 2.7 times higher.
on April 17,2013 | 10:30AM
AhiPoke wrote:
I thought this newspaper was suppose to report the news. Nothing newsworthy here. What's not stated, and will become tomorrow's news, is a gigantic tax increase to pay for the unfunded benefits for public union workers. That will push us to #1.
on April 17,2013 | 08:44AM
mytake wrote:
It's hard to believe that there is a worst tax state than us.
on April 17,2013 | 09:19AM
Ripoff wrote:
Really?! LoL
on April 17,2013 | 10:06AM
justin_thyme wrote:
The Small Business & Entrepreneurship Council.certainly is NOT an objective source of reliable information. In reality it's yet another of the many right-wing mouthpieces that promote the anti-progressive agenda of the neoconservative movement. Quality-of- life measures and overall prosperity are much higher in the states that SBEC ranked "worst" than in the (mostly) red states touted as being the "best." Shame on the Star-Advertiser for publishing this propaganda as though it were legitimate news from a credible source!
on April 17,2013 | 10:15AM
FWS wrote:
The SBE Council compiled these ranking from very recent data collection. If there had been a pro-business (Republican) slant to this study, I’m sure the liberal media folks at CNN Money and NBC News would have taken great pleasure highlighting that when they also published the report. I am surprised that the Star-Advertiser neglected to mention how this report aligns very well with the recent Kaufman Foundation report that gave Hawaii an “F” grade for tax code and a “D” grade for state business environment. But I’m sure all this bad news is just a Republican conspiracy to make the socialist, eh, Democrat run States look bad.
on April 17,2013 | 11:52AM
false wrote:
I bet for 20 or 30 Billion more Hawaii could have the 1st Worstest.
on April 17,2013 | 10:20AM
nodaddynotthebelt wrote:
This will go in and out of our state legislators ears as their way of doing business is taxing and spending. Hawaii will continue to be at the bottom when it comes to small business. The excise tax has to go. It is a regressive system that puts a dead weight on business. Simply tax the population a percentage of their income and live with that. They might find that doing so will energize the small business community and the result would improve a stale economy that solely rely on tourist money. As small businesses grow so do their employee count. And as their employee count increase we take away the amount that is unemployed. And the more they hire the more people who will be spending. And the more people spend the more the businesses collect which means tax revenues go up.
on April 17,2013 | 10:43AM
inverse wrote:
Don't worry, after the rail project starts and whether or not the Feds will give 1.55 billion to Hawaii to pay for a train to nowhere, Hawaii will surpass California as the worst state tax system in the nation.
on April 17,2013 | 10:45AM
false wrote:
Not sure the title of this article is justified. A conservative business group dislikes Hawaii's tax system, preferring tax systems which give more advantages to businesses, like Texas. Let me suggest an organization more favorable to employees might have a different list. Yet this paper chooses to exalt this biased study as if it were objective and fair. Go figure.
on April 17,2013 | 11:33PM
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