Hawaii’s tax burden among top 15 in U.S.
Some 10.2 percent of Hawaii residents’ income went toward state and local taxes, making Hawaii’s tax burden the 14th-highest in the U.S., a new study has found.
The nonpartisan Tax Foundation’s annual State-Local Tax Burden Rankings were released today, highlighting the state and local tax burden on taxpayers in each of the 50 states. The study analyzed state and local taxes collected during fiscal year 2012.
While the amount of taxes paid to other states per capita averaged $1,096, the amount of taxes paid to Hawaii per capita was $3,480, according to the foundation.
The study notes that taxation also occurs across state lines, such as taxes paid while on vacation in another state.
“There’s an ongoing debate over how much is enough when it comes to taxes, but it isn’t always informed by accurate data,” said Nicole Kaeding, Tax Foundation economist, in a statement. “Our study gives taxpayers a comprehensive look at where tax burdens are felt across the states, so that they can have an informed discussion on the size and reach of state and local taxes.”
7 responses to “Hawaii’s tax burden among top 15 in U.S.”
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and the hsta wants to raise it even more? Hey state you get enough of our hard earned property that we work for and you take. Get you allocations correct and take care of the classrooms.
Where every other state has a Sales Tax, Hawaii is more greedy and penalizes its people with an Excise tax, which is two to three times worse than Sales Tax. Our 5% Excise tax is more like a 10% to 15% Sales tax since it is charged multiple times before a product is bought at the store. It amazes me how naive the public is, constantly saying how low our tax is. On top of that, where other States waive taxes for things like groceries, Hawaii does not.
Small correction, the pyramiding effect of the GET that you are stating is not correct. Wholesale GET is .5%, so, it does not compound at the rates you are calculating.
Right but the “Value-added” nature of the tax does have a compounding effect. Additionally states like California do not levy a sales tax on food or medications. When you look at the price differential for food for example in Hawaii, the GET is a fairly heavy chunk of change that impacts low to low middle wage earners disproportionately.
That is correct, it does compound. But as noted, not at the 10-15% claimed by What. And you are right, medications and food (not sure if it’s just unprepared foods that are exempt, or restaurant food as well). I’m interested in how you determined that middle wage earners are impacted disproportionately…is it based on percentage of tax paid to total earnings?
There is a poorly written sentence in this story that makes it sound like we pay nearly 3 times as much taxes per capita as people pay in other states. We don’t. When you study the chart in the Tax Foundation website it makes more sense.
“While the amount of taxes paid to other states per capita averaged $1,096, the amount of taxes paid to Hawaii per capita was $3,480, according to the foundation.”
Partially due to all of our “cash only” businesses. Isn’t there a way we can get EVERYONE to pay their taxes so the rest of us don’t have to pay so much?