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Astonishing experience awaits Hawaii residents: lower taxes

Grassroot CEO Keli‘i Akina and Gov. Josh Green waved shaka signs at the signing ceremony for two bills that will lower everyone’s tax burden in Hawaii. Photo by Tom Yamachika.

Gov. Josh Green signed bills on Monday to lower the state income tax and exempt some medical services from the GET

It was an amazing occasion on Monday when Gov. Josh Green signed two bills that will provide significant relief to Hawaii taxpayers.

The tax cuts — something virtually unheard of at the Hawaii Legislature — were embodied in HB2404 and SB1035.

The former will incrementally provide Hawaii taxpayers with the biggest income tax cut in state history, saving local taxpayers more than $5 billion through 2031.

The latter will exempt private-practice Hawaii doctors and dentists from having to pay the state general excise tax on payments from Medicare, Medicaid and TRICARE, starting in 2026, which could help counter the state’s doctor shortage and improve local healthcare access, especially in rural areas.

The Grassroot Institute of Hawaii was at the forefront of supporting both bills throughout the 2024 legislative session, as shown by its testimonies and commentaries here for HB2404 and here for SB1035.

Grassroot President Keli’i Akina, who was on hand for the signing ceremony, commended Gov. Green for proposing the income tax cut and supporting the GET exemption. He also praised the Legislature for unanimously approving both measures.

Speaking of the state income-tax cut in particular, Akina said: “It’s incredible that Hawaii residents in the lowest tier of earners will go from having the second-highest state income-tax burden in the nation to the lowest, and average working families will see their state income tax burden drop from second highest to the third lowest. The impacts of this brave move, approved unanimously by our state leaders, will be enormous.”

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