Posted on: Friday, July 26, 2002

Hawai'i tops list of states with tax cuts

Advertiser Staff

Hawai'i was the only state in the nation to cut taxes by more than 1 percent last year, according to a new survey by the National Council of State Legislatures.

Gov. Ben Cayetano and state lawmakers approved a three-step cut in income taxes in 1998, with the last phase of the cuts taking effect Jan. 1.

By contrast, 16 states raised taxes by more than 1 percent in the year ending June 30, according to the study.

"We implemented one of the biggest tax cuts in the nation, and certainly the biggest in Hawai'i history," Cayetano said in a prepared statement yesterday. It is saving Hawai'i's people $2 billion over six years.

The NCSL report found states overall increased taxes by $6.7 billion last year, a sharp reversal in an overall trend of providing tax cuts in previous years.