Hawai’i’s Tax System

Taxes Should Reduce Inequality — Not Deepen It

A fair tax system should help to close the gap between the rich and everyone else. But in Hawaiʻi, our current system is making inequality worse.

Who Pays More — and Who Pays Less

Our state’s tax system asks the least from those who have the most. Hawaiʻi’s wealthiest residents pay the lowest portion of their income on taxes, while low- and moderate-income families pay the highest.

Lowest 20%
(< $21,900)
14.1%
Top 1%
(> $594,000)
10.1%
Share of family income spent on state and local taxes. The wealthy pay a smaller share than struggling families.

Two Paths to a Better Tax System

1

Tax Credits for Working Families

Programs like the Child Tax Credit and Earned Income Tax Credit support families that are struggling to survive. They put tax money back in the pockets of these low-income and ALICE households, which helps them pay for their basic needs.

Child Tax Credit Earned Income Tax Credit
2

Taxing Corporations and the Wealthy

The top 1% should pay more towards the programs and services that we all benefit from. Corporations also profit from Hawai’i’s land and culture—while barely giving back to the communities they are located in.

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