HI HB2010

Establishes a 2% surcharge on taxable income exceeding $1,000,000 for Hawaii taxpayers, with revenue dedicated to funding the state's Medicaid program if approved by the legislature.

Responds to federal Medicaid funding cuts that could result in the loss of approximately $400,000,000 in federal Medicaid spending in Hawaii and potential loss of healthcare coverage for up to 41,000 residents.

Amends Section 235-51 of the Hawaii Revised Statutes to update individual income tax rate brackets with phased adjustments for taxable years beginning after December 31, 2024, 2026, and 2028.

References Massachusetts's successful implementation of a 4% surtax on income over $1,000,000 enacted in 2023 as a precedent for this type of millionaire tax policy.