Issue Position: Cost of Living

Issue Position

Make food and medical services exempt in order to help families afford their everyday necessities.

Repeal the income tax for minimum wage earners and lower rates for the middle class.

Invest additional dollars in high-density residential infrastructure in our urban core.

Update the State's financial database system to provide greater transparency and accountability so taxpayer dollars are spent wisely.

Increase access to and reduce the cost of early childhood education which is often one of the highest cost burdens for families after housing.

Since I have held office, addressing the high cost of living in Hawaii has been a top priority. In light of COVID-19, the economy and the cost of living are more important than ever. I have introduced several bills to address the high cost of living.

First, one of my main priorities is to eliminate the General Excise Tax (GET) on food, medicine, and feminine hygiene products. Hawaii is one of only a handful of states that taxes food and medicine. Removing the GET from these necessities would immediately lower daily living costs for individuals and families in a wide range of income levels. This measure would go a long way in helping local families and benefit the community as a whole.

In addition to reducing the GET burden, removing the income tax for minimum wage earners and reducing rates for the middle class would go a long way to helping working families in Hawaii. Our state income tax rates are some of the highest in the nation, and working residents must pay nearly 7% marginal rates even if they're working a minimum wage job. Removing the income tax for minimum wage earners and reducing it for the middle class rewards the hard working men and women in our communities and would give families additional funds to save, invest, or spend in the local economy.

It is also essential to increase access to and reduce the cost of early childhood education through initiatives such as more teacher certification opportunities to address the teacher shortage within early learning and out-of-the-box solutions like tax-credits for businesses that provide on-site preschool for their employees and allowing taxpayers to spend pre-tax dollars on child care expenses including daycare, after school programs, and in-home care, thus reducing total taxable income. This is important for many families because childcare is one of the biggest expenses after rent or mortgage. According to PATCH Hawaii, in 2019 the average cost of childcare per child in Hawaii is around $14,000 a year. As the mother of a three year old and a seven-month old, I know firsthand how expensive childcare is and how necessary it is in order for my husband and I to support our family and dedicate adequate time to our careers. This is an area that desperately needs to be addressed in order to help our local families with their monthly expenses.

These examples are initiatives that can provide instant relief for our families, especially those affected by the economic fallout from the COVID-19 crisis. In addition to these measures there are other long-term and structural issues we need to continue to address. The high cost of housing in Hawaii is one of the largest contributors to our cost of living and needs long-term, dedicated solutions to ensure our future generations can afford to stay in Hawaii. We also need to look at our education system, especially higher education, to ensure our keiki are being prepared for future careers and will be ready to help diversify Hawai"i's economy. I've spent the last eight years dedicated to reducing our high cost of living and would be honored to continue working toward making Hawaii more affordable for our valued residents.

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