Lawmakers are considering increasing the capital gains tax from about 7% to 9%. Capital gains are the profits earned on investments or through the sale of a property.
Devin Thomas, a senior analyst at the Hawaiʻi Appleseed Center for Law & Economic Justice, explained that because capital gains are taxed at a flat rate, it’s not fair to those with lower incomes.
“In Hawaiʻi, capital gains are taxed at a flat 7.25% rate regardless of what your income is. So even if somebody is a high earner and they belong to the $200,000-plus income tax bracket, they would still pay that lower rate of 7.25%,” he said…