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As mentioned many times, there isn't anything in Hawaii that the Democrats (who have never not been in charge of the legislature in Hawaii's history) don't tax. It has a cumulative effect on the poorest people.
“...We know that Hawaii's GET is so comprehensive, taxing both goods and services that's what is so good and bad about the tax. It has such a broad base that it allows a low rate of 4% to generate so much money and so bad in that it hurts the poor the most because nearly all of a poor family's budget is spent on consumption of both goods and services...”
For people interested in moving to Hawaii, these very pervasive taxes need to be taken into consideration.
Location: not sure, but there's a hell of a lot of water around here!
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Did this come as some sort of a 'surprise' to you? Kind of like the bugs, the traffic, the 10 dollar a gallon milk? Why is it people move over here and are suddenly 'shocked' by this crap? I could understand it happening prior to the internet, but now? Try the sales tax in Texas or California, and then see where Hawaii stands, or, better yet, don't. Wouldn't want to encourage more idiots moving over here.
I don't really mean the 'idiots' part, but, sometimes..........................
Did this come as some sort of a 'surprise' to you? Kind of like the bugs, the traffic, the 10 dollar a gallon milk? Why is it people move over here and are suddenly 'shocked' by this crap? I could understand it happening prior to the internet, but now? Try the sales tax in Texas or California, and then see where Hawaii stands, or, better yet, don't. Wouldn't want to encourage more idiots moving over here.
I don't really mean the 'idiots' part, but, sometimes..........................
Aloha and okoledakine
Not a surprise to me - but taxing food and even medical services is a little over the top...
Taken out of context, this seems worse than it actually works out. Hawai'i is not the worst overall, so people from some states actually find relief in Hawai'i. This stat simply refers to the number of services that are taxed in Hawai'i. Other states have more exemptions.
Sales and Use taxes in most other states have higher rates than Hawai'i's 4% General Excise Tax (GET), typically running 7 - 9% (Illinois is 11.5%!!!) including local taxes. And while I personally disagree with taxing food, I notice that 10 states do it, and Tennessee's rate on food is 5.5%.
And while sales and use taxes are regressive, yes, what makes Hawai'i's current GET version workable is the fairly low rate. And interestingly enough, many tax experts say this is a favorable structure for economic growth.
So yeah, the taxes in Hawai'i are high overall, but they're not the worst in the country.
Taken out of context, this seems worse than it actually works out. Hawai'i is not the worst overall, so people from some states actually find relief in Hawai'i. This stat simply refers to the number of services that are taxed in Hawai'i. Other states have more exemptions.
Sales and Use taxes in most other states have higher rates than Hawai'i's 4% General Excise Tax (GET), typically running 7 - 9% (Illinois is 11.5%!!!) including local taxes. And while I personally disagree with taxing food, I notice that 10 states do it, and Tennessee's rate on food is 5.5%.
And while sales and use taxes are regressive, yes, what makes Hawai'i's current GET version workable is the fairly low rate. And interestingly enough, many tax experts say this is a favorable structure for economic growth.
So yeah, the taxes in Hawai'i are high overall, but they're not the worst in the country.
I am in chicago, IL. Take it from me, yours isn't that bad. I also own a business here and I pay 3, 4, 5 made up taxes that I was not even aware of until I got the business started.
GET is far more aggressive. It even includes home rental. So the middle class (note I did not say "poor") who can never own a home, are continually caught in this regressive tax for their entire life. So just renting a $1500 home, this is over $700 just for housing alone. Not to mention the GET on utilities, making nearly $1k in taxes just for a place to live. Taxes that would otherwise not be incurred in other states.
So just renting a $1500 home, this is over $700 just for housing alone. Not to mention the GET on utilities, making nearly $1k in taxes just for a place to live.
Even accepting your assumptions, your math is exaggerating... $300/mo utilities = $144 annual tax. $720 + $144 = $864. Nearly 15% less than $1,000. I find it useful in this kind of discussion to be clean about details.
Quote:
Originally Posted by orangecat
Taxes that would otherwise not be incurred in other states.
True, but all other things would have to be equal for that to be significant, and they're not.
Other states have higher taxes in different areas, such such as income tax and property tax. End of the day, what the average citizen really cares about is the total tax impact on their life. Yes, the total impact of taxes in Hawai'i is high, but it's not the highest.
Even accepting your assumptions, your math is exaggerating... $300/mo utilities = $144 annual tax. $720 + $144 = $864. Nearly 15% less than $1,000. I find it useful in this kind of discussion to be clean about details.
True, but all other things would have to be equal for that to be significant, and they're not.
Other states have higher taxes in different areas, such such as income tax and property tax. End of the day, what the average citizen really cares about is the total tax impact on their life. Yes, the total impact of taxes in Hawai'i is high, but it's not the highest.
Hawaii County = .04167 per cent tax. It is on everything. (Oahu is about 1/2 percent more)
Hawaii also taxes wholesale sales at 1/2 percent - even if the wholesaler sells to another wholesaler, who sells to another, etc. It is a cumulative tax. It all adds up. That is the entire point.
That GET (general excise tax) is not the only tax that a business pays - they also have to pay income tax on the profits.
Hawaii also has a graduated income tax that rises up to over 11% of income!
Illinois does not have 11.5% sales tax. Maybe in Cook County (Chicago) but the rest of the state is much lower.
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