I was taking another look at those Tax Foundation comparisons of state & local taxes, and noticed that they convert total taxes into a calculated “tax burden” by comparing it to income, then comparing Hawaii to the average of all states.
There’s a chart showing the state/local taxes for each year from 1977 through 2009. Hawaii’s “rate”, the proportion of per capita income paid in state and local taxes, ranged from 9.1% in 1982 to as high as 10.6% in 1994. The U.S. average hit its high and low in the same years, 9.2% in 1982 and 10.2% in 1994. Clearly, we are sailing in the same economic sea.
Overall, Hawaii comfortably tracks the national average. Keep in mind that the Hawaii figures are likely at least somewhat inflated because they include general excise tax paid by visitors, although judging from prior comments, there is some disagreement as to what proportion is actually “exported” in this manner.
Just for fun, I created a chart comparing Hawaii’s state/local tax rate, as calculated by the Tax Foundation, with the national average. Hawaii is the blue line. The national average is shown in red.
We’re higher during some periods, lower in others. On average, it looks like Hawaii is a bit above average, but it’s not a big difference.
Just a bit more food for thought.
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Interesting, Ian. Thanks for your efforts in compiling and sharing that. Some people do seem to revel in a bit of hysteria about their tax “burden,” but I’m looking forward to the ensuing discussion (involving people far more knowledgeable than I).
Ian, I am not certain what I like better, Quick Beef Stew or a Tax chart… Oh, the cats win , paws down.
I am single have a mortgage ( I pay more than $20,000 a year in interest.) and am in a 12% tax bracket. My commute is 34 miles round trip in a car that gets about 23 miles per gallon. That concerns me the most.
Ian,
I think the methodology used by the Tax Foundation for this study factored in calculations as to what portion of the GET was exported to non-residents.
The enigma for me is why the spokesman for the local Tax Foundation affiliate never shares this data when he testifies about Hawaii’s “excessive tax burden.” Or why, since he is so selective in what he says, he is granted so much credibility at the Legislature when he speaks on tax matters?
He either does not know the facts, or he conveniently keeps silent about them when they do not serve his ideological purpose.
Or maybe– I GUESS it is possible– he thinks his parent, national organization is not a trustworthy source of information on taxes?