THE SENATE

S.C.R. NO.

141

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

requesting the department of taxation to conduct a study of the effects of tax credits on state revenues.

 

WHEREAS, over the past several years, the utilization of tax credits has emerged as a prevalent trend in tax policy, both federally and locally; and

WHEREAS, tax credits may cost less to enact than creating new spending programs, which often require the establishment of new bureaucracies; and

WHEREAS, some tax credits have been poorly targeted and, therefore, are largely ineffective in benefiting the intended individuals; and

WHEREAS, arguably a more sound policy would be to clearly determine public policy goals and formulate direct approaches for their funding; and

WHEREAS, it is also possible that tax credits are masquerading as the ideal compromise between instituting tax cuts and advancing social policies without increasing government spending; and

WHEREAS, without documentation of the actual effects of tax credits on state revenues, it is impossible to determine whether existing tax credits are cost-effective tools for compensating taxpayers and generating revenues; and

WHEREAS, knowledge of the actual effects of tax credits on state revenues will allow taxpayers and legislators to better understand the costs and benefits of policy choices; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2004, the House of Representatives concurring, that the Department of Taxation is requested to conduct a study of the effects of tax credits on state revenues in order to determine their effectiveness and value; and

BE IT FURTHER RESOLVED that the Department of Taxation is requested to report its findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2005; and

BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Director of Taxation.

 

 

 

OFFERED BY:

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Report Title:

Taxation; Study of Tax Credits