HI HB2008

Establishes a new 13% top income tax bracket for joint filers and surviving spouses with taxable income over $1,000,000, effective for taxable years beginning after December 31, 2029.

Phases in restructured income tax brackets over multiple years (2025, 2027, 2029, and 2030), gradually raising thresholds at each bracket level while maintaining the existing rate structure from 1.40% to 11%.

Addresses income inequality findings that Hawaii's richest households have seen income grow at double the rate of middle-class households and five times the rate of the poorest households since the 1970s.

Cites research indicating the top 20% of earners pay a lower share of household income in taxes than the bottom 80%, framing the new bracket as ensuring high earners pay their "fair share."

Amends Section 235-51 of the Hawaii Revised Statutes governing personal income tax rates for joint filers, surviving spouses, heads of households, and unmarried individuals.