Relating To Refundable Food/excise Tax Credit For Seniors.
By amending section 235-55.85 of the Hawaii Revised Statutes, SB2691 intends to provide significant relief to many seniors in the state. This increased credit is particularly beneficial for those who already face challenges in affording basic necessities, such as food. The legislative change is poised to adjust the state's tax framework, making it more accommodating for older citizens who may rely heavily on assistance in maintaining their livelihoods. The bill is intended to go into effect after its approval and will apply to taxable years commencing after December 31, 2021.
SB2691 aims to enhance the financial well-being of seniors aged sixty-five and older by allowing them to claim an additional exemption under the refundable food/excise tax credit. This legislative measure seeks to double the credit amount available to eligible seniors, thereby providing a larger subsidy that offsets the general excise taxes they incur on food purchases. The bill specifically targets lower-income seniors, recognizing the financial pressures they face as a result of fixed incomes and rising costs of living.
Discussions surrounding SB2691 may include notable points of contention concerning its fiscal implications on state revenue. Critics may raise concerns regarding the potential budgetary impacts of doubling the food/excise tax credit for seniors, questioning if it could lead to shortfalls in funding for other state services. Conversely, advocates for the bill argue that it prioritizes the well-being of a vulnerable demographic within the community, emphasizing that supporting lower-income seniors with this tax relief is a vital societal responsibility.