(AP) — The Hawaiʻi Senate is considering what would be the highest income tax rate of any state in the nation. The legislation would impose a 16% tax on individuals earning more than $200,000. California has the current top rate at 13.3% on those earning more than $1 million. Hawaiʻi’s top rate is now 11%. Some lawmakers are exploring new sources of income because the state has suffered a sharp decline in tax revenue as tourism has plummeted during the coronavirus pandemic. The Senate Ways and Means Committee unanimously passed the measure last week. The bill’s prospects in the House are uncertain.
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