HI HR52

Requests 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.

Directs the Commission to examine how Hawaii's current tax features, such as not counting pensions as ordinary income, could be retained under a percentage-based system.

Requires the Commission to investigate why Hawaii's current state income tax appears regressive compared to the federal tax for median and lower-income households, using examples showing gaps ranging from $1,377.60 to $2,685.96.

Directs the Commission to submit findings, recommendations, and any proposed legislation to the Legislature no later than twenty days before the start of the 2017 Regular Session.