Giving massive tax cuts to those most able to help pay for critical social programs exacerbates inequality and stalls the economy—it's time for an overhaul.
Managing state spending during hard times is, well, hard; but the Great Recession has clear lessons about what services are just too critical to cut.
Economies that rely on just a few primary sectors comprised of, largely, low-wage jobs have a hard time weathering shocks, and it’s the workers who suffer most.
The figures from the Council on Revenues are in: there is enough added revenue from increased income taxes on the wealthy to pay for an expansion of the most successful anti-poverty tax credit currently available.
The new budget totals $20.8 billion compared with $17.5 billion for 2019. The 19 percent budget increase represents an additional $3.3 billion, most of which will be spent on capital improvement projects.
The first of a two-part analysis of the results of the increasingly opaque state budget process this past legislative session, and what we can expect in terms of revenues, funding and expenditures for the upcoming 2020 fiscal year that begins July 1, 2019.
Our taxes support essential social programs like Medicare, Medicaid and Social Security, as well as infrastructure, education, national defense and the environment. Tax credits help alleviate the tax burden from a regressive system that takes more from poor people than rich. Several measures in the state legislature aim to address this imbalance, and generate more revenue for the state.
Shifting some of the state’s tax burden would result in a more equitable, and profitable, system.
The state of Hawai‘i is not the only governmental entity collecting and spending money for the public good. Each of the four counties has taxing authority and responsibilities that complement state budgets and services. State and county revenue sources overlap very little. Counties collect property taxes, which, according to the state constitution, may not be assessed by the state. Other county revenues include: service and use fees for water, sewer and waste disposal, licenses, and permits, including building permits.
State budgets, particularly for the executive branch, showcase our government’s priorities when it comes to spending money on social programs, capital improvement projects, and operations for its various departments.