Civil Beat EditorialHawaii

Let’s Address Root Causes of Hawaii’s Financial Woes

If state is going to raise taxes, it should show residents it’s spending money as if it were its own.

Gov. Neil Abercrombie delivers his annual State of the State address.

Chad Blair/Civil Beat

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The Civil Beat Editorial Board 2010-2013

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<p>A previous version of this article stated "Hawaii's tax revenues amounted to 10.6 percent of total income making it one of the top five most tax burdensome states." This was based on the Tax Foundation's <a href="">Working Paper No. 4</a>. However, on February 23, 2011, the Tax Foundation published a <a href="">Special Report</a>. This report showed that Hawaii's 2008 tax burden was 9.9 percent, rather than the previously published 10.6 percent. This change is the result of methodology changes introduced in the most recent report, namely: (1) allocating consumption taxes based on disposable income rather than personal income, (2) using a new method of imputing travel data that is used to allocate various tourism-related taxes, and (3) adopting a time frame that is now the standard state fiscal year (July 1-June 30), not the calendar year as in previous reports in the series. Under the new measure, Hawaii's ranking went from being consistently in the top five since 1980 to being in the top half of states.
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