Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Friday, April 9, 2010

Today is Tax Freedom day for Hawaii, but some question validity

Advertiser Staff

The so-called "Tax Freedom Day" for Hawai'i residents is today, April 9, or four days earlier than occurred last year.

Tax Foundation annually provides an estimate of the tax burden shouldered by taxpayers across the nation, calculating how many days of the year residents of states have to work to pay their federal, state and local taxes before earning money for themselves.

This year Hawai'i's tax freedom day falls on the say day as the national average. The Tax Foundation, a Washington-based non-profit group, said Hawai'i has the 19th highest tax time period in the nation.

The methodology used in arriving at Tax Freedom Day has been criticized in the past by the Center on Budget and Policy Priorities, which said it overstates tax burden because it includes taxes paid here by tourists.

The center also has criticized the report for overstating the tax burden for many people because the Tax Foundation uses an average tax liability that is skewed higher by the upper-income households.