HOUSE OF REPRESENTATIVES

H.B. NO.

1319

TWENTY-SIXTH LEGISLATURE, 2011

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE PROGRESSIVE TAX REFORM TASK FORCE.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that Hawaii's income tax rates conform to a progressive structure.  However, once certain high income favoring tax breaks are factored in, the resulting tax structure is skewed to favor those with the greatest ability to pay.

     This regressive tax structure unfairly burdens those with the least ability to pay by taxing them at a significantly higher percentage of their total annual income than those with the greatest ability to pay.

     The legislature is committed to resolving budgetary and tax challenges with the goal of creating a fair and progressive tax structure, so that those with the greatest means contribute a fairer proportional share of the tax burden; and when cuts are required, those most in need are spared.

     The purpose of this Act is to establish a task force to identify the steps needed to reform Hawaii's tax laws to create a balanced and progressive tax structure.

     SECTION 2.  (a)  There is established the progressive tax reform task force within the department of taxation for administrative purposes.

     (b)  The progressive tax reform task force shall consist of the following members:

     (1)  Two members to be appointed by the governor;

     (2)  Two members of the senate, to be appointed by the president of the senate;

     (3)  Two members of the house of representatives, to be appointed by the speaker of the house of representatives;

     (4)  The director of taxation or the director's designee;

     (5)  One member from the Legal Aid Society of Hawaii; and

     (6)  One member from the Tax Foundation of Hawaii.

     (c)  The task force shall:

     (1)  Identify the steps needed to reform Hawaii's tax laws to create a more balanced and progressive tax structure; and

     (2)  Become a resource to assist the director of taxation in creating a consistent, fair, and uniform tax structure in Hawaii.

     (d)  The members of the task force shall select the chairperson of the task force from among themselves.  Members of the task force shall serve without compensation but shall be reimbursed for necessary expenses, including travel expenses, incurred in the performance of their official duties.

     (e)  The task force shall submit a report of its findings and recommendations to the legislature no later than twenty days prior to the convening of the 2012 regular session.

     (f)  The task force shall cease to exist on June 30, 2012.

     SECTION 3.  This Act shall take effect upon its approval.


 


 

Report Title:

Progressive Tax Reform Task Force

 

Description:

Establishes a task force within the Department of Taxation to reform Hawaii's tax laws.  (HB1319 HD1)

 

 

 

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