Bill > HR60

This 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 compared to the national average, noting that tax structures significantly influence business investment and individual migration. It points out that Hawaii has high per capita state and local taxes and a less favorable business climate according to some rankings. The study is intended to determine how to pay for new and existing state and county programs in a fair and efficient manner to foster economic growth, and it should include an analysis of the overall cost of doing business in Hawaii, considering factors like 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 and prioritizing tax structures with programs to better promote economic growth.