Jul 15, 2011
Alert - Hawaii Caps the Charitable Deduction
Update:
Governor Neil Abercombie of Hawaii signed into law legislation capping all deductions on residents with certain income levels. For 2011 through 2015, singles in Hawaii with adjusted gross income (AGI) above $100,000 will only be allowed to claim $25,000 for charitable giving and other deductions, and couples with AGI above $200,000 will be allowed $50,000. This bill is similar to legislation vetoed by the former governor in 2010 but has a lower threshold, capturing more taxpayers.
Background
- July 15, 2011 - Governor Neil Abercombie of Hawaii signed into law legislationS.B. 570 capping all deductions on residents with certain income levels.
- July 13, 2010 - Governor Linda Lingle vetoed H.B. 1907 a tax bill that would have capped itemized deductions for higher income individuals including charitable contributions. The measure would have resulted in tax increases totaling more than $140 million over the next five years. Legislation text:
News stories and commentaries on the Hawaii proposal:
- 7/9/11 Hawaii Adopts Obama Style Tax hike On Rich, Forbes
- 5/4/10 Hawaii Raises Taxes on the Rich — Again, Wall Street Journal