HI HCR91

Request the Tax Review Commission to study the feasibility of calculating Hawaii's state individual income tax as a percentage of a taxpayer's federal individual income tax liability.

Examine how Hawaii's current tax system could be modified to retain features such as not counting pensions as ordinary income while using a federal income tax percentage approach.

Investigate why Hawaii's current state individual income tax appears regressive compared to the federal income tax for median and lower-income households, with examples showing gaps ranging from $1,377.60 to $2,685.96 depending on income level.

Require the Tax Review Commission to submit findings, recommendations, and any proposed legislation to the Legislature no later than 20 days before the 2017 Regular Session convenes.

Reference Alaska's proposed six percent piggyback income tax model and similar arrangements used by other states and local jurisdictions as potential alternatives to Hawaii's current system.