“HI-est” Taxation in the Nation
With the tax increases passed by this year’s Legislature, Hawaii now has the highest tax rates in the nation! I voted against the multiple tax increases, and voted to uphold Governor Linda Lingle’s vetoes of these fiscally imprudent bills. Unfortunately, Majority members of the Legislature overrode the Governor’s vetoes.
New tax increases I opposed:
I also opposed the veto override of House Bill 1741, which increases the conveyance tax and redistributes moneys away from the Natural Area Reserve Fund and the Rental Housing Trust Fund. Besides driving up the price for commercial property transactions, and reducing the amount of construction work, diverting money away from preserving our natural areas and development of affordable housing and rentals is not good policy.
Also, Senate Bill 199 restricted the Act 221 high tech tax credits to the point of rendering it ineffective in fulfilling its primary purpose: drawing out-of-state investment capital to fund our high tech industry. According to the Department of Taxation, for a “cost” of $431.6 million, over $1.2 billion was invested in Hawaii high tech companies, and over $1.4 billion was expended by Hawaii high tech companies in state, over a 3:1 ratio for every dollar of tax credit. This restriction, which I oppose, inhibits the development of a healthy, balanced economy in Hawaii.
Representative Cynthia Thielen • State Capitol, Room 443 • 415 South Beretania Street • Honolulu, Hawaii 96813 • Phone: (808) 586-6480