Institute on Taxation and Economic Policy (ITEP)

Hawaii

Khon: Hawaii considered to have one of ‘least fair’ tax systems in U.S.

October 2, 2015

  “Current state and local tax systems are, on average, “extremely unfair,” according to the report. While most Americans of all political persuasions think a progressive tax system is most fair, virtually every state has regressive state and local tax structures. Besides survey data, other sources used to create the rankings were obtained from the […]

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State Tax Codes As Poverty Fighting Tools

September 17, 2015 • By Aidan Davis, Meg Wiehe

The U.S. Census Bureau released data in September showing that the share of Americans living in poverty remains high. In 2014, the national poverty rate was 14.8 percent - statistically unchanged from the previous year. However, the poverty rate remains 2.3 percentage points higher than it was in 2007, before the Great Recession, indicating that recent economic gains have not yet reached all households and that there is much room for improvement. The 2014 measure translates to more than 46.7 million - more than 1 in 7 - Americans living in poverty. Most state poverty rates also held steady between…

Hawaii News Now: Film Tax Credits Attract Productions to Hawaii

July 28, 2015

The filming is almost finished for a new movie being shot entirely Hawaii. The state’s film tax credits are bringing in big productions like “Mike and Dave Need Wedding Dates,” but not everyone is a fan of the incentives. The tax credits are a waste of money, according to critics. “The closest thing to a […]

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Pay-Per-Mile Tax is Only a Partial Fix

June 24, 2015 • By Carl Davis

Read this report in PDF form Introduction For years, academics and transportation experts have been discussing the possibility of taxing drivers for each mile they travel on the nation’s roads.  This “vehicle miles traveled tax” (VMT tax) could either supplement or replace the existing gas tax as the primary method of funding transportation infrastructure. To […]

Honolulu Civic Beat: A Progressive Legislative Lament

May 18, 2015

The Institute on Taxation and Economic Policy report of 2015 notes that Hawaii is the state with the second highest percent of its taxes paid by the bottom fifth as we tax them at a rate of 13.4 percent. The top fifth of our population only pay about 8 percent of their income in taxes. […]

Hawaii Appleseed Center: Tax Cuts for the Wealthiest

April 23, 2015

When the top marginal tax rates and cap on itemized deductions expire in 2015, Hawaii’s wealthiest residents will see a windfall. Meanwhile, our working families are not scheduled to get any relief. Read the full report here.

KHON2: Hawaii resident’s tax burden one of the worst in the US

April 21, 2015

The Institute on Taxation & Economic Policy, or ITEP, found in its latest report that many taxes — including payroll taxes, sales taxes, and some state and local taxes — are regressive, which means they take more money out of the pockets of Americans in the lower- and middle-income brackets than from wealthier families. Click […]

Honolulu Civil Beat: Is This Really Fair Taxation?

April 21, 2015

The bill’s preamble language, which is supposed to give the reader some idea of what is motivating the law change proposal, states: According to the study “Who Pays: A Distribution Analysis of Tax Systems in All 50 States, Fifth Edition” (Institute of Taxation & Economic Policy, January 2015), Hawaii households with income in the lowest […]

Pacific Business News: Hawaii’s Undocumented Immigrants Paid More than $31M in Taxes

April 20, 2015

Hawaii’s undocumented immigrants paid $31.17 million in state and local taxes in 2012, according to a new study by the Institute on Taxation and Economic Policy. With immigration reform, those payments would increase by 10 percent, the report predicted. Included in the study were sales, excise, personal and property taxes. Read more

Vermont Public Radio: Business Leaders Mount Campaign Against Plan to Limit Tax Deductions

April 15, 2015

Carl Davis is a senior analyst at the Institute on Taxation and Economic Policy, a Washington, D.C., based research group that analyzes federal, state and local tax policies. Davis, who lives in Vermont, says there’s no reason to think Vermont would suffer any competitive disadvantage if it goes through with the plan. “Massachusetts, Connecticut and […]

Pacific Business News: Hawaii Community Foundation Launches Fund to Support Immigrants

April 3, 2015

The Institute for Taxation and Economic Policy found that in 2010, unauthorized immigrants in Hawaii paid more than $60.3 million in state and local taxes. If granted legal status, they would pay $79.6 million in state and local taxes. Read more

An updated version of this report has been published with data through July 1, 2017. Read the report in PDF form. Many states’ transportation budgets are in disarray, in part because they are trying to cover the rising cost of asphalt, machinery, and other construction materials with a gasoline tax rate that is rarely increased.1 […]

West Hawaii Today: How Progressive Is Our Tax System

January 26, 2015

On Jan. 15, the Institute on Taxation and Economic Policy (ITEP) released a report ranking the states in terms of how progressive their tax systems are. A “progressive” tax system is one that asks wealthier taxpayers to pay more of their income than poorer taxpayers. Most states rely upon some form of net income tax […]

Honolulu Star Advertiser: Isles Second Highest in Taxes on the Poor

January 20, 2015

Hawaii has the second-highest taxes on the poor and the 15th most unfair state and local tax systems in the country, according to a recent report from a Washington, D.C.-based nonprofit. The Institute on Taxation and Economic Policy issued its 2015 report “Who Pays: A Distributional Analysis of the Tax Systems” this week. The report […]

Pacific Business News: Hawaii second-worst state in taxing the poor, study says

January 15, 2015

“Hawaii is the second-worst state in terms of taxing its lowest-income residents, according to a new study by the Institute on Taxation and Economic Policy and the Hawaii Appleseed Center for Law and Economic Justice. The study, titled “Who Pays: A Distributional Analysis of the Tax Systems in All Fifty States,” found that Hawaii households […]

Honolulu Civil Beat: Low-Income Hawaii Residents Have Nearly Twice the Tax Rate as the Rich

January 15, 2015

“Hawaii taxes low-income people at nearly twice the rate as the richest people in the state, according to a new analysis by the Institute on Taxation and Economic Policy and the Hawaii Appleseed Center for Law and Economic Justice. That makes Hawaii the second-worst state for taxing the poor, the analysis concluded.” Read more

The Garden Island: State tax system takes toll on low-income

January 15, 2015

“But there are some costs of living in the Aloha State that don’t always seem fair, and one of those costs is the focus of a new study released Wednesday by the Institute on Taxation and Economic Policy and the Hawaii Appleseed Center for Law and Economic Justice. It found that Hawaii’s lowest income residents […]

ABC (Michigan Affiliate WZZM): Gas Tax 101

December 3, 2014

Carl Davis, a senior analyst at the Institute on Taxation and Economic Policy in Washington, D.C., said Michigan is one of only four states, with Indiana, Illinois and Hawaii, that fully apply their general sales tax to fuel sales. Of the 41.4 cents in state taxes Michigan motorists pay on a gallon of fuel, only […]

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State Tax Codes As Poverty Fighting Tools

September 18, 2014 • By Meg Wiehe

Read the Report in PDF Form The Census Bureau released data in September showing that the share of Americans living in poverty remains high. In 2013, the national poverty rate was 14.5 percent, a slight drop from last years’ rate of 15 percent and the first decline since 2006.1 However, the poverty rate remains 2.0 […]

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Options for Progressive Sales Tax Relief

July 30, 2014 • By Meg Wiehe

See the 2016 Updated Brief Here Read the Policy Brief in PDF Form Sales taxes are one of the most important revenue sources for state and local governments—and are also one of the most unfair taxes. In recent years, policymakers nationwide have struggled to find ways of making sales taxes more equitable while preserving this […]

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State Estate and Inheritance Taxes

July 21, 2014 • By Meg Wiehe

For much of the last century, estate and inheritance taxes have played an important role in helping states to adequately fund public services in a way that improves the progressivity of state tax systems. While many of the taxes levied by state and local governments fall most heavily on low-income families, only the very wealthy pay estate and inheritance taxes. Recent changes in the federal estate tax, however, culminating in the "fiscal cliff " deal of early 2013, have forced states to reevaluate the structure of their estate and inheritance taxes. Unfortunately, the trend of late has tended toward weakening…

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Pay-Per-Mile Tax is Only a Partial Fix

May 28, 2014 • By Carl Davis

The gasoline tax is the single largest source of funding for transportation infrastructure in the United States, but the tax is on an unsustainable course. Sluggish gas tax revenue growth has put strain on transportation budgets at the federal and state levels, and has led to countless debates around the country about how best to pay for America's infrastructure.

Detroit Free Press: Why Michiganders Pay Among the Highest Gas Tax to Drive on Crummy Roads

May 23, 2014

By Paul Egan, May 23, 2014 High fuel taxes and low spending on roads. It’s a nasty combination, but Michigan motorists can rightfully complain they pay some of the highest fuel taxes to drive on some of the lousiest roads. According to national data, Michigan has the sixth-highest state taxes on gasoline but one of […]

The Garden Island: Licensed to drive

February 3, 2014

(Original Post) Bill would allow undocumented residents to acquire driver’s license Posted: Monday, February 3, 2014 2:00 am Tom LaVenture – The Garden Island LIHUE — Proposed legislation would amend state requirements to allow undocumented residents to qualify for a driver’s license in the interest of public safety, identification and insurance coverage. The “Safe and […]

Honolulu Civil Beat: It’s Time to Revamp Hawaii’s GET

January 17, 2014

(Original Post) By Victor Geminiani  01/16/2014 Hawaii taxes our residents in poverty more heavily than all but three other states in the nation. Most of this regressivity is caused by our heavy reliance on the General Excise Tax (GET), which generates half of all revenues collected by the state. Sales and excise taxes are the […]