Hawaiʻi currently allows its wealthiest households to benefit from the lower tax brackets designed to benefit middle and lower-income residents. While Hawaiʻi’s top marginal tax rate of 11 percent kicks in at $200,000 for a single taxpayer and $400,000 for married couples filing jointly, these households do not pay 11 percent tax on all of their income. Even multimillionaires benefit by having the first $400,000 they earn in any given year taxed at the state’s lower rates of 1.4–10 percent.

• We should increase the marginal income tax rates for taxpayers earning more than $200,000 a year, while leaving the rates untouched for those earning less than $200,000 a year.

• Doing so would generate approximately $250 million in revenue for the state, at a conservative estimate.

• Individual income tax revenue has increased by approximately 12 percent over the last year and the new tax hike would take effect in the next fiscal year (in which income tax revenue will continue to rise).