Economics of Taxation
Taxing Tourists to Generate Revenue to Address the Negative Impacts of Climate Change on Hawai‘i Natural Resources
There is widespread agreement among Hawai‘i residents that the state government needs to spend more money on natural resource stewardship. A critical question is how best to pay for it. In his January 2024 State of the State Address, Governor Josh Green said that “we must do more to protect our beaches, parks, and other […]
Read MoreAre Businesses Heavily Taxed in Hawai’i?
By James Mak A recent report—Total State and Local Business Taxes—published by Ernst & Young LLP, State Tax Research Institute, and Council on State Taxation presents detailed state-by-state estimates of state and local taxes paid by businesses in Fiscal Year 2021. The report (hereafter referred to as the Ernst & Young report) is in its […]
Read MoreA Comparison of State-Level Carbon Reduction Strategies: A Case Study of Hawai‘i
Abstract: State-level electricity standards are proliferating and becoming more ambitious, with numerous US states adopting a Renewable Portfolio Standard (RPS) and a small but increasing number of states participating in carbon pricing programs. The State of Hawai‘i has an ambitious RPS that requires 100% electricity generation through renewable sources by 2045. This study uses a […]
Read MoreCliffs in the GAP: A Design Flaw with an Easy Fix
By Dylan Moore How much more am I getting? I’m getting $80 a month before taxes, and I’m going to lose a $1000 benefit… It’s so stupid. This quote—from a parent in California1—describes the frustrations that policy “cliffs” can cause for low-income working families. A “cliff” occurs when a large benefit is suddenly withdrawn when […]
Read MoreTime for A Carbon Tax for Hawaii?
By James Mak and Erik Haites Hawaii’s constitution requires a Tax Review Commission (TRC) be appointed every five years to review the state’s tax/revenue system. Commissioners comprise of tax experts in the state and serve without compensation. In its final report to the Legislature, the 2020-2022 Tax Review Commission’s top recommendation is a carbon tax […]
Read MoreUHERO’s Justin Tyndall’s “case for taxing large vehicles” receives national media attention
UHERO’s Justin Tyndall’s recent publication in Economics of Transportation has received national media coverage, including Medium, Streetsblog, Financial Times, and Vox. Using data covering fatal vehicle collisions in the US and exploiting heterogeneity in changing vehicle fleets across metros for identification, Tyndall estimates that replacing the growth in Sport Utility Vehicles with cars would have […]
Read MoreRethinking HTA’s “Regenerative Tourism Fee”
By James Mak and Robert D. Ebel Hawaii Tourism Authority’s (HTA) Oahu Destination Management Action Plan (DMAP) proposes to “Establish a ‘Regenerative Tourism Fee’ (RTF) that directly supports programs to regenerate Hawaii’s resources, protect natural resources, and address unfunded conservation liabilities.” The proposed RTF is more commonly referred to as a “visitor green fee.” The […]
Read MoreTo Tax or Not to Tax Sale of Food and Medicine
By James Mak Inflation is soaring at the highest rate since the early 1980s. Not surprisingly, many Hawaii residents are struggling financially today. Sadly, this has been true long before the pandemic and the recent spike in prices. In 2018, 42% of Hawaii households struggled to make ends meet; 33% were ALICE households, households that […]
Read MoreEconomic and GHG impacts of a US state-level carbon tax: the case of Hawai’i
A new paper by a team from UHERO published in Climate Policy finds that a carbon tax for Hawai‘i set at the federal social cost of carbon would reduce cumulative GHG emissions by 10% relative to the baseline from 2025 to 2045. They find that when carbon tax revenues are paid as equal-share dividends to Hawai‘i […]
Read More