HI HR60

Requests the Department of Business, Economic Development, and Tourism (DBEDT) to study how Hawaii's state and county tax structures affect long-term economic growth and how government programs can be funded more equitably and efficiently.

Hawaii ranks among the bottom 10 states nationally for new business formations, has the lowest startup early survival rate in the country according to the Kauffman Foundation, and ranked 40th for self-employment in 2020.

Hawaii ranked 6th-highest in the nation for state and local taxes per capita and 42nd for business climate according to the Tax Foundation.

The study must include a comprehensive cost of doing business analysis covering taxes, energy, labor, and imported inputs, with policy recommendations to be developed in conjunction with the Economic Research Organization at the University of Hawaii (UHERO).

Certified copies of the resolution are to be sent to directors of DBEDT and Taxation, the Tax Review Commission, mayors of each county, and UHERO's Executive Director.