March 17, 2006- Tax Relief

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Aloha,

The latest Council on Revenues forecast adds nearly $60 million to the state’s $574 million projected surplus.

Our Administration wants to return nearly half of the surplus to the people who need it most in the form of tax relief. 

Senate President Bunda supports our proposal to raise the standard deduction to increase the take-home pay for our lowest wage earners.  We support his proposal to widen income tax brackets.

These two measures would reduce the tax burden by $86 million and benefit 80% of Hawai`i’s taxpayers.

In addition, I am proposing an ongoing tax credit on food, medical services and non-prescription drugs, and a one-time tax refund of $150 per exemption for all but the highest income residents.

We have the opportunity to invest in our future and provide tax relief to the people who need it most.  Please call your legislator and encourage them to pass tax relief, now.

Mahalo.  This is Governor Linda Lingle.