HOUSE OF REPRESENTATIVES

H.R. NO.

55

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 
   


HOUSE RESOLUTION

 

REQUESTING THE LEGISLATIVE REFERENCE BUREAU TO CONDUCT A STUDY ON THE FEASIBILITY OF PROVIDING A TAX DEDUCTION TO SMALL BUSINESSES FOR MEDICAL INSURANCE PREMIUM COSTS.

 

WHEREAS, the United States Small Business Administration of Hawaii reports that in 2001, there were 28,569 small businesses of five hundred employees or less in the State; and

WHEREAS, the most recent data available by firm size in 1999, indicates that 96.7 per cent of the businesses in Hawaii are considered small businesses; and

WHEREAS, small businesses employ 235,446 or 56.2 per cent of the State's 419,047 employees; and

WHEREAS, business bankruptcies totaled sixty-eight in 2001, an increase of 7.9 per cent over 2000; and

WHEREAS, business terminations amounted to 4,080, an increase of 15.9 per cent over 2000; and

WHEREAS, smaller businesses of thirty employees or less suffer the most and are most susceptible to bankruptcies and terminations due to the faltering and stagnant economy and rising costs; and

WHEREAS, a substantial cost of small businesses in Hawaii is the cost of providing mandatory health care insurance coverage to employees; and

WHEREAS, a tax deduction for health insurance premium costs of smaller businesses would greatly assist these businesses and ultimately boost economic growth in the State; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2004, that the Legislative Reference Bureau is requested to conduct a study on the feasibility of providing a tax deduction to small businesses of thirty employees or less for medical insurance premium costs of up to $1,500 for each of the businesses' employees; and

BE IT FURTHER RESOLVED that the Department of Taxation is requested to assist the Legislative Reference Bureau by providing statistical and other tax-related information, including the effect such a deduction would have on present revenues; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to report its finding and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2005;

BE IT FURTHER RESOLVED that this Resolution may be cited as the "Healthy Small Business Tax Relief Concurrent Resolution"; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of the Legislative Reference Bureau and the Director of Taxation.

 

 

 

OFFERED BY:

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Report Title:

Small Business; Income Tax Deduction