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1 Joseph Henchman & Mark Robyn, The Price of Paradise: Hawaii Becomes Fifth State to Adopt New Income Tax Brackets on High-Earners 1 (2009)

handle is hein.taxfoundation/ffbgjxz0001 and id is 1 raw text is: FFISCAL May 2009 FC No. 169 FACT The Price of Paradise: Hawaii Becomes Fifth State to Adopt New Income Tax Brackets on High-Earners By Joseph Henchman and Mark Robyn New Top Rate of 110% on Income Over $200,000 is Highest State Rate in U.S. The Hawaii Legislature forced through several tax increases on May 11, including an income tax increase and tax increases on cigarettes and other tobacco products, among others. With the exception of the cigarette tax increase, all these tax increases were vetoed by Governor Linda Lingle on May 7 in Hawaii's first-ever public veto ceremony attended by nearly a thousand taxpayers and citizens. However, on May l Ithe state legislature was able to override each of the vetoes and enact the tax increases. The income tax increase is retroactive to January 1, 2009, and expires on December 31, 2015. The cigarette tax will go up on July 1, 2009 and increase again in 2010 and 2011. The hotel accommodations tax also goes up 1 percentage point on July 1, 2009 and again on July 1, 2010, temporarily through 2015. The conveyance tax increase permanently takes effect on July 1, 2009. State Income Tax Increased, Brackets Added The broadest tax increase and the one receiving the most attention is an income tax increase on higher-income earners. The legislation adds three income tax brackets on top of the current nine, at rates of 9% on income over $150,000 ($300,000 for joint filers), 10% on income over $175,000 ($350,000 forjoint filers), and 11% on income over $200,000 ($400,000 for joint