Bill > HCR66

This concurrent resolution requests the Department of Business, Economic Development, and Tourism (DBEDT) to conduct a comprehensive study on how Hawaii's state and county tax structures and programs affect the state's long-term economic growth. The resolution highlights concerns about Hawaii's lagging business formation rates, low startup survival rates, and lower-than-average self-employment rates, suggesting that the state and county tax systems, which are significant factors in business investment and population movement, may be contributing to these issues. It notes that Hawaii has high per capita state and local taxes and a relatively poor business climate according to the Tax Foundation. The study is intended to determine how existing and new state and county programs can be funded equitably and efficiently to promote economic growth, and it will include a cost of doing business analysis that considers Hawaii's high operational expenses, such as taxes, energy, labor, and imported goods. Furthermore, DBEDT, in collaboration with the Economic Research Organization at the University of Hawaii (UHERO), is asked to propose policy recommendations for realigning state and county tax structures with programs to better foster long-term economic prosperity.