HomeMy WebLinkAboutCOM 0615.002 2012-2014 BRENDA J. FORD
Phone: (808) 323-4277
Council Member `:4
District 6 - Portion of North
-minor Fax: (808) 329- 4786
Kona, South Kona, Ka`u, & ''•;o:;M►�► E-Mail: bford @co.hawaii.hi.us
Greater Volcano Area
HAWAII COUNTY COUNCIL
County of Hawaii
West Hawaii Civic Center -�
74-5044 Ane Keohokalole Hwy.
Kailua-Kona, Hawaii 96740
DATE: January 17, 2014
LA) .
� T
TO: J Yoshimoto, Chairperson,
and Members of the Hawai`i County Council
FROM: Brenda J. Ford, Council Member
SUBJECT: Communication No. 615, Relating to 1% General rccise Tax Increase
Attached please find copy of Attachment"C", Info Sheet 1, which provides information
regarding how regressive taxes affect different income levels.
Please distribute to all council members for the Committee on Finance meeting that is scheduled
for January 21, 2014.
Mahalo.
BF/dkr/la
Att.
Copy of
Comm;No
Ref.To, F
Ref,Date .IAN 2 1 2014
Serving the Interests of the People of Our Island
Hawai`i County Is An Equal Opportunity Provider And Employer
Attachment C
Info Sheet 1 How Rearessive Taxes Affect Different Income Levels
Theme 3: Fairness in Taxes
Lesson 2: Regressive Taxes
Regressive taxes include fixed amounts of tax on each individual or household. Here are three
regressive taxes in the fictional country of Regressia. The charts show how the taxes affect
lower, middle, and upper income levels.
INCOME TAX IN REGRESSIA
Income Percentage of Income Tax Amount
$10,000 60% $6,000
$50,000 12% $6,000
$100,000 6% $6,000
HIGHWAY TOLL IN REGRESSIA
Income Percentage Amount Paid for a
Year's Worth of Tolls
$10,000 10% $1,000
$50,000 2% $1,000
$100,000 1% $1,000
PROPERTY TAX IN REGRESSIA
Value of Home Percentage Tax Amount
$50,000 20% $10,000
$100,000 10% $10,000
$300,000 3% _ $10,000
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Understanding Taxes 1