If enacted, this bill would amend Section 235-7 of the Hawaii Revised Statutes, effectively removing certain deferred compensation retirement payments from gross income calculations for specific income brackets. The thresholds set forth are $30,000 for single filers, $45,000 for heads of household, and $60,000 for those filing jointly or as surviving spouses. By exempting these retirement incomes from state taxes, the bill could help to alleviate the financial pressures on seniors, enabling them to retain a larger portion of their retirement savings for essential living expenses.
Summary
House Bill 825 seeks to address the inequities present in the taxation of retirement income in Hawaii, particularly focusing on the financial struggles faced by seniors. The bill proposes to exclude income received from deferred compensation retirement plans from the state income tax for taxpayers who meet specified income thresholds, thereby providing meaningful financial relief to many individuals in their retirement years. This measure is aimed at combating the issue where many elderly residents find it difficult to make ends meet due to burdensome taxation on their limited income sources.
Sentiment
The general sentiment surrounding HB 825 seems to be positive, particularly among advocates for seniors and financial equity. Supporters argue that the legislation is a necessary step to ensure that the senior population of Hawaii can live with dignity and financial stability in their retirement years. However, there may also be some reservations from fiscal conservatives who fear the potential long-term implications on state revenue and budget allocations, highlighting a concern about balancing the needs of retirees with the state's financial health.
Contention
While the bill is primarily aimed at benefiting seniors, some points of contention may arise regarding its fiscal impact on state tax revenue. Opponents of the bill may worry that providing tax exclusions could lead to significant reductions in state funds that are essential for public services. Additionally, a debate could ensue regarding whether such exemptions disproportionately benefit those who may not need financial relief, potentially complicating the bill's passage.
A bill for an act relating to property taxation for commercial child care centers and facilities and including effective date, applicability, and retroactive applicability provisions.(Formerly HSB 224.)
A bill for an act relating to property taxation for commercial child care centers and facilities and including effective date, applicability, and retroactive applicability provisions.(See HF 668.)
A bill for an act placing assessment limitations for property tax purposes on commercial child care facilities, and including effective date, applicability, and retroactive applicability provisions.(Formerly HSB 316.)
A bill for an act placing assessment limitations for property tax purposes on commercial child care facilities, and including effective date, applicability, and retroactive applicability provisions.(See HF 991.)