STAND. COM. REP. 318
Honolulu, Hawaii
, 2003
RE: H.B. No. 725
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Sir:
Your Committee on Labor and Public Employment, to which was referred H.B. No. 725 entitled:
"A BILL FOR AN ACT RELATING TO INCOME TAX,"
begs leave to report as follows:
The purpose of this bill is to allow employers with an average annual number of employees of not more than 25 and a gross annual income of not more than $5,000,000 to claim an income tax credit of up to 15 percent of prepaid health insurance premiums paid for employees and their families.
The Legislative Information Services of Hawaii and the Hawaii Restaurant Association supported this bill. A concerned individual supported the intent of the measure. The Department of Taxation and Tax Foundation of Hawaii commented on the bill.
The requirements of the Prepaid Health Care Act are taking a major toll on the financial status of small employers, resulting in financial hardship for many of these businesses. Under current law, employers bear approximately ninety three percent of the premium costs, while the employee bears approximately seven percent of the cost. Your Committee understands that this has an impact on businesses, especially small businesses, and feels that this measure will provide some relief.
As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 725 and recommends that it pass Second Reading and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,
____________________________ MARCUS R. OSHIRO, Chair |
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