SUBJECT: GENERAL EXCISE, USE, MISCELLANEOUS, Long term care surcharge on state tax
BILL NUMBER: SB 2478, HB 1885 (Identical)
INTRODUCED BY: SB by BAKER, CHUN OAKLAND, ESPERO, IHARA, NISHIHARA, Galuteria, Kidani; HB by TAKAYAMA, CHOY, CREAGAN, KAWAKAMI, OSHIRO, TOKIOKA, Cachola, DeCoite, Evans, Mizuno, Souki
EXECUTIVE SUMMARY: This bill establishes a long-term care surcharge of 0.5% onto the state general excise and use tax which would be used as a dedicated source of funding to provide defined benefits for long-term care costs. The funding mechanism is a hike in an already regressive tax, and we can expect an experience similar to that we are having under the Honolulu county surcharge. The result is a defined benefit plan, presumably to cover all residents of the state who need long-term care; we can expect an experience similar to that we are having under ERS. Implementation of this idea could result in an unmitigated disaster.
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