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Governor Neil Abercrombie called for shared sacrifice in his first Hawaii State of the State address. Breaking the weeks of silence on the matter of balancing the state budget, Abercrombie presented concrete plans to tackle the $800 million shortfall through the fiscal year 2013. In his speech delivered before the house and senate, and with other island officials in attendance, including Hawaii County Mayor Billy Kenoi, Abercrombie outlined the measures he hopes to enact, like tax increases and repeals to certain tax deductions.
“I am proposing two fixes to the tax code that will increase revenues to the state. One is a repeal of the state tax deduction for state taxes—an absurdity in the tax code, the elimination of which is long overdue. This change will affect all taxpayers who itemize, so we will phase in implementation for middle-income earners to lessen the immediate effect.
“The other fix is to implement the recommendation of the Tax Review Commission to treat pension income like all other income for tax purposes, as is done when preparing federal taxes. My proposal includes a provision so that those who are most dependent on their pensions will not be taxed.
“I am proposing what is an overdue increase in the alcohol tax and will also propose a fee on soda and similar drinks. We can no longer ignore the fact that consumption of these and other such products contribute to rising public health costs. Revenues from these fees will be used to repair the public health infrastructure and also to fund prevention and education programs.
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The Governor also has his eye on tourism revenue.. time shares and the HTA stand to take a hit…
“We need to ensure that our visitor industry is sustainable,” said the governor, “by bringing the impact fees paid by the increasing number of timeshare occupants into alignment with hotel room occupants who pay the transient accommodations tax.
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VIDEO: Hawaii State of the State – Abercrombie speech breakdown|Big Island Video News
Governor Neil Abercrombie called for shared sacrifice in his first Hawaii State of the State address. Breaking the weeks of silence on the matter of balancing the state budget, Abercrombie presented concrete plans to tackle the $800 million shortfall through the fiscal year 2013. In his speech delivered before the house and senate, and with other island officials in attendance, including Hawaii County Mayor Billy Kenoi, Abercrombie outlined the measures he hopes to enact, like tax increases and repeals to certain tax deductions.
“I am proposing two fixes to the tax code that will increase revenues to the state. One is a repeal of the state tax deduction for state taxes—an absurdity in the tax code, the elimination of which is long overdue. This change will affect all taxpayers who itemize, so we will phase in implementation for middle-income earners to lessen the immediate effect.
“The other fix is to implement the recommendation of the Tax Review Commission to treat pension income like all other income for tax purposes, as is done when preparing federal taxes. My proposal includes a provision so that those who are most dependent on their pensions will not be taxed.
“I am proposing what is an overdue increase in the alcohol tax and will also propose a fee on soda and similar drinks. We can no longer ignore the fact that consumption of these and other such products contribute to rising public health costs. Revenues from these fees will be used to repair the public health infrastructure and also to fund prevention and education programs.
..................
The Governor also has his eye on tourism revenue.. time shares and the HTA stand to take a hit…
“We need to ensure that our visitor industry is sustainable,” said the governor, “by bringing the impact fees paid by the increasing number of timeshare occupants into alignment with hotel room occupants who pay the transient accommodations tax.
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VIDEO: Hawaii State of the State – Abercrombie speech breakdown|Big Island Video News
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