March 11, 2005 - Tax Relief

Aloha.        

With the April 15th income tax filing deadline approaching, taxes are on the minds of Hawai`i residents. Understandably, many say their tax burden is too high.  That is certainly the case for Hawai`i's lower-income wage earners who struggle to pay for basic necessities, like food and medical care. 

My Administration has proposed significant tax cuts, which will increase the take-home pay for the lowest wage earners.  These include those who have jobs, but have a hard time making ends meet.  To help, we want to lower the amount of their income that gets taxed. 

This simple step would reduce taxes for 334,000 tax filers...and, 27,000 of the lowest wage earners will no longer have to pay any state income taxes. 

We also want to create a refundable tax credit for purchases of food, medical services and non-prescription drugs.  This tax break would benefit 40 percent of Hawai`i's residents.  For a family of four, this tax credit means they would get back $220, even if they owed no taxes. 

Thanks to our growing economy, we can afford these tax cuts. 

The legislature should pass these tax cuts, so you can keep more of the money you earn. 

After all, it's your money. 

This is Governor Linda Lingle.  Mahalo for listening.