Tax Articles
The True Cost of Subsidizing Childcare
By Binierose Cacho and Dylan Moore Executive Summary As Hawaiʻi’s lawmakers are confronting budgetary challenges, expanding the childcare subsidies may seem fiscally out of reach. Yet, as we discuss, an expanded Child and Dependent Care Tax Credit (CDCC) could recoup a meaningful share of its upfront costs by making it easier for parents to remain […]
Read MoreMigration Effects of the Maui Wildfires: Early Indicators from State Tax Filings
By Dylan Moore and Baybars Karacaovali (Office of Tax Research and Planning, Hawai’i Department of Taxation)* Executive Summary: An analysis of state income tax filing addresses indicates that the 2023 Maui wildfires reduced Maui’s population by at least 1,000 residents, due to both increased out-migration and reduced in-migration. At least 430–510 Maui residents have moved […]
Read MoreWhy Not Just Tax Them? A Middle Ground on Addressing Short-Term Rentals
By Dylan Moore Maui is at a crossroads, grappling with a severe housing crisis exacerbated by last year’s wildfires. In response, Mayor Richard Bissen has proposed a ban on short-term rentals (STRs) in the hopes of converting the approximately 6172 homes on Maui that are currently used as STRs into long-term housing. While this plan […]
Read MoreUnclaimed: Over $15 million in Tax Credits for Low Income Households
By Dylan T. Moore (UHERO) & Baybars Karacaovali (Office of Tax Research and Planning, Hawai’i Department of Taxation) In 2021, low-income households in Hawaii were eligible for about $42 million through the state’s refundable food/excise income tax credit. But over one third—or $15.3 million—of this money went unclaimed. These estimates come from a new analysis […]
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 A “cliff” occurs when a large benefit is suddenly withdrawn when […]
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