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Gov. Josh Green Gives Final Approval To Income Tax Break He Hopes Will Make Hawaii Affordable

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Gov. Josh Green Gives Final Approval To Income Tax Break He Hopes Will Make Hawaii Affordable


But others worry the tax cut, which will cost the state billions of dollars, will mean deep cuts to needed state programs.

Gov. Josh Green signed the largest income tax cut in state history into law on Monday, giving final approval to a measure that should deliver bigger paychecks for many of Hawaii’s working people as early as the beginning of next year.

Green told a gathering of lawmakers, media and others at the State Capitol that the tax cut is a crucial part of his administration’s plans to make Hawaii more affordable, and help staunch the flow of people who are leaving the islands.

The administration predicts the new law will reduce state income taxes for 70% of working-class families, and eliminate the state income tax entirely for about 40% of all state taxpayers by 2031.

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“These were the changes that we had to have because we’ve seen an exodus of people who are living paycheck to paycheck,” Green said. “We’ve seen an exodus of those individuals going to the mainland, working families, because they just can’t afford rent.”

In a packed 5th floor Ceremonial Office in the Hawaii State Capital building, Governor Josh Green M.D., surrounded by State House Representatives and Senators along with members of the medical profession, signed two bills into law on Monday that aim to reduce State Income Tax and GET taxes on Medicare, Medicaid and Tricare services beginning in 2026 signaling the biggest tax cuts in Hawaii history. (David Croxford/Civil Beat/2024)
Gov. Josh Green signs the largest state income tax cut in Hawaii history in a packed fifth-floor Ceremonial Office in the Hawaii State Capitol. The new tax law is expected to reduce the income tax burden for a median-income Hawaii family by a total of nearly $20,000 over the next seven years. (David Croxford/Civil Beat/2024)

House Finance Committee Chairman Kyle Yamashita said House Bill 2404 — which is now Act 46 — will reduce the tax burden for a median-income Hawaii family by nearly $20,000 over the next seven years. It will also reduce state income tax collections by a total of $5.6 billion by 2031, according to Green.

State Tax Director Gary Suganuma said his department will modify the tax withholding tables used to calculate how much money is taken out of each paycheck for taxes, and employees should begin receiving more take-home pay in each paycheck in January.

The state Tax Department is offering a downloadable “take-home pay calculator” that residents can use to estimate the impact of the new tax law on their own paychecks.

HB 2404 would increase the standard deductions for taxpayers from the current $4,400 for joint filers to $8,800 for tax filers next year, and then increase that standard deduction in a series of steps until it reaches $24,000 in 2031.

It would grant similarly large expansions in the standard deductions for single filers, heads of households and married couples filing separately.

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It would also eliminate state income taxes for the lowest-paid filers, and adjust the all state income tax brackets to account for inflation.

The governor also signed a more modest tax measure Monday that will eliminate the state excise tax on medical and dental services for people who receive benefits under Medicaid, Medicare or the TRICARE program for the military, retirees and their dependents.

That measure is Act 47, and will reduce state tax collections by $77.5 million in fiscal year 2027, which will be the first full fiscal year after the tax break takes effect. The Tax Department expects it will reduce tax collections by $81 million the following year.

Green predicted that tax break “will bring more providers to our people, it’s super important.”

The huge income tax cut in particular has some observers concerned that the state will resort to deep budget cuts later to balance the state budget, or will forgo important projects the state urgently needs to undertake.

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Nicole Woo, director of research and economic policy for the nonprofit Hawaii Children’s Action Network Speaks, said that given the large loss in revenues from the income tax cut, “we worry how lawmakers will fill that gap.”

The tax cut will reduce state collections by more than $1.4 billion in fiscal year 2032, according to the Tax Department, and the reduced collections will continue indefinitely into the future.

“We worry that needed services are going to face cuts, and needed improvements are not going to get funded in the future,” she said. “We look forward to talking with our lawmakers about how they are going to fill this budget hole without reducing social services, public education and all these other needed things in our community.”

In a packed 5th floor Ceremonial Office in the Hawaii State Capital building, Governor Josh Green M.D., surrounded by State House Representatives and Senators along with members of the medical profession, signed two bills into law on Monday that aim to reduce State Income Tax and GET taxes on Medicare, Medicaid and Tricare services beginning in 2026 signaling the biggest tax cuts in Hawaii history. (David Croxford/Civil Beat/2024)In a packed 5th floor Ceremonial Office in the Hawaii State Capital building, Governor Josh Green M.D., surrounded by State House Representatives and Senators along with members of the medical profession, signed two bills into law on Monday that aim to reduce State Income Tax and GET taxes on Medicare, Medicaid and Tricare services beginning in 2026 signaling the biggest tax cuts in Hawaii history. (David Croxford/Civil Beat/2024)
House Finance Committee Chairman Kyle Yamashita said Monday was a “monumental, historic day” with the signing of House Bill 2404. Green said the measure will reduce state income tax collections by a total of $5.6 billion by 2031, and will stimulate the state economy. (David Croxford/Civil Beat/2024)

The new law also provides large tax cuts to the wealthiest Hawaii residents “who really don’t need it,” Woo said.

But Green declared that “we won’t be cutting services,” in part because he predicts the tax cut will grow the state economy. A larger economy would translate into increases in other kinds of tax collections, such as the general excise tax.

“Individuals who are working paycheck to paycheck will spend every single dollar on local businesses, on their rent, on cars, on their health care needs. They will spend it here for their families, for school books for their children, they will all spend it right here at home,” he said.

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Green also said he expects that reducing income taxes will mean residents will have more money and can rely less on Medicaid and other expensive social programs.

“As we support people’s quality of life and their ability to pay and survive on their own, a lot of those other programs will see cost savings, so we’re being smart about this,” he said.

However, Green also said his administration has begun a “deep dive into the costs that we have on the books that maybe shouldn’t be on the books.” Specifically, he said about 30% of state jobs are vacant, and unspent salaries often result in year-end surpluses of several hundred million dollars.

For positions that haven’t been filled for three or four years, Green said he wants to either raise the pay for essential state jobs to finally attract workers to fill them, or “make sure that we cut out some of the excess costs.”

“We expect to present a budget to the Legislature next year with fewer positions overall so that we get rid of some of what has been perceived as waste,” he said.

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He also noted the administration has been pushing to “get more resources in many cases from travelers.”

Green campaigned on a plan to impose a new “green fee” on arriving tourists to help cope with climate change and the impacts from the millions of tourists who come here each year, but the idea has stalled at the Legislature in each of the last three sessions.



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The Places Visitors Love Most In Hawaii Just Hit Their Limit

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The Places Visitors Love Most In Hawaii Just Hit Their Limit


If you’ve driven Hana Highway recently, as we have, tried to wedge your rental car onto the shoulder at Honolua Bay, inched along North Shore behind an hours-long nonstop line of brake lights, or followed a social media pin taking you to Hoopii Falls, Hawaii just put those exact places into specific future plans.

The state updated plans naming specific beaches, roads, trails, and bays where visitor pressure is highest and outlining what officials say could change at each. The first round of these (DMAPs) leaned heavily on broader goals and community meetings. The latest version, however, now lists the individual sites and attaches proposed actions. These are among the most in-demand places people build into their trips, not some policy abstractions.

Before assuming your next trip will look dramatically different, one basic reality is worth noting. The Hawaii Tourism Authority does not manage the roads, trails, bays, or neighborhoods in question, so the counties, DLNR, Hawaiian Home Lands, and private landowners will be needed to carry out most of what has just been described. In almost every case, the first year at least is focused on more studies, coordination, and setting up of what might come next.

Scenic Point from Road to Hana

Maui: Hana and Honolua finally get specific plans.

Maui’s plan centers squarely on the iconic Hana Highway, with six of the island’s nine site-specific actions targeting that single corridor.

The ideas are relatively straightforward. Paid community stewards at high-traffic stops such as Keanae Peninsula, a first-of-its-kind Hawaii tour guide certification program requiring culturally accurate mo’olelo (storytelling), safety guidance, and place-based knowledge instead of loosely scripted commentary, together with clearer signage identifying safe and legal pullouts while reminding drivers to let residents pass instead of backing up traffic for visitor photo opportunities.

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At Bamboo Forest off Hana Highway, the plan addresses repeated trespassing onto private land. There have been 35 rescues there over the past decade, most requiring use of emergency helicopters. The proposal calls for signage clearly indicating no access. But because that land is privately owned, any real restriction there depends on the owner’s full cooperation.

Honolua Bay carries perhaps the boldest concept of all in the statewide package of suggested changes, including a reservation and shuttle system to eliminate illegal roadside parking, a cultural trail staffed by stewards before visitors ever reach the water, and water stewards who will be paddling out to orient snorkel boat passengers. No procurement process has started, and no shuttle contract exists, so the idea remains on paper for now. Kaupo, where a recently paved road has attracted more traffic and complaints, would also get sensor-linked warning signs at blind hills to focus on driving safety.

Big Island: Kealakekua Bay may see closings.

Kealakekua Bay is the main headline site here, as might be expected. The draft introduces the possibility of “rest days” during coral spawning or other sensitive periods, coordinated by the DLNR, when the bay would be closed to visitors. It is still a concept and would require coordination beyond HTA.

At Keaukaha near Hilo, cruise ship impacts drive the conversation ideas, and the community has pushed for a permanent role in shaping how visitor flow is handled around the port. A steward program piloted in 2023 is now being formalized rather than remaining as a short-term experiment.

South Point, or Ka Lae, sits on Hawaiian Home Lands, so the state’s role here is to support the Department of Hawaiian Home Lands’ existing plan rather than create a new one from scratch. Hilo itself is described as needing more visitor activity even as other Big Island sites seek to manage crowding.

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Kaena Point State Park OahuKaena Point State Park Oahu

Oahu: North Shore, pillboxes, and parking reality.

On Oahu, it’s the iconic North Shore that anchors the plan. Five sequenced actions are listed, but the first year focuses on studies, coordination, and groundwork.

There is no shuttle system scheduled for immediate rollout and no reservation platform ready to launch. During the public webinar, officials said any fees would be site-specific and pointed to the extremely limited parking infrastructure as a major constraint.

Lanikai Pillboxes and Maili Pillbox are cited as trails that have seen steep increases in use due to social media exposure. Lanikai already has daytime parking restrictions on residential streets between 10 am and 4 pm, and Maili has experienced a recent fatality. The plan for Lanikai is to evaluate managed access, while for Maili, it begins with determining who is responsible for the trail and what authority exists in order to manage it.

Downtown Honolulu appears in the draft as a future walkable corridor linking Iolani Palace, Honolulu Hale, and nearby historic sites and shops.

Waipo'o Falls Trail at Waimea Canyon KauaiWaipo'o Falls Trail at Waimea Canyon Kauai

Kauai: this waterfall became a neighborhood fight.

Hoopii Falls in Kapaa has become one of the most tense sites in the statewide plans. What was once a local waterfall became a high-traffic destination after intense social media exposure. The trail crosses private, lease, and state lands and is not formally maintained, and residents have placed rocks and tree stumps at neighborhood access points to slow or block visitor flow. The plan’s near-term focus is to gather more data and bring landowners together to clarify jurisdiction and what can legally be done before any formal access system is devised.

The Kapaa Crawl along Kuhio Highway is listed as a priority, but the proposed response, which is a shuttle and visitor hub concept centered on Coconut Marketplace, has no funding, no operator, and no timeline.

Kokee and Waimea Canyon are also included. Two of four proposed actions are already deferred beyond the first funding year, and the near-term steps focus has moved to installing visitor counters and studying whether a reservation system would be feasible.

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What changes on your next trip.

Across all four islands, social media is repeatedly cited as a significant accelerant, turning lesser-known spots into must-see stops almost overnight. And in that regard, there is no end in sight.

There are no additional statewide fees attached to these newly identified sites, no disclosed budgets for even the most ambitious concepts, and HTA does not gain or lose any new enforcement authority through these drafts.

If you are visiting in the coming months, you are unlikely to encounter reservation systems at Honolua Bay, formalized rest-day closures at Kealakekua, shuttles operating on the North Shore, or state-managed access changes at Ho’opi’i. Most of what is described for year one is groundwork.

You can review the full island-by-island drafts here: https://www.hawaiitourismauthority.org/what-we-do/destination-management-action-plans/

Do these plans go far enough or too far at the sites you know best?

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Hawaii County Surf Forecast for March 04, 2026 | Big Island Now

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Hawaii County Surf Forecast for March 04, 2026 | Big Island Now


Forecast for Big Island Windward and Southeast


Shores Tonight Wednesday
Surf Surf
PM AM AM PM
North Facing 2-4 2-4 2-4 2-4
East Facing 3-5 4-6 4-6 5-7
South Facing 1-3 1-3 1-3 1-3
TONIGHT
Weather Mostly cloudy. Numerous showers.
Low Temperature In the upper 60s.
Winds East winds 5 to 10 mph.
Tides
Hilo Bay High 1.9 feet 03:26 PM HST.
Low -0.1 feet 09:20 PM HST.
High 2.4 feet 03:40 AM HST.
WEDNESDAY
Weather Partly sunny. Numerous showers.
High Temperature In the upper 70s.
Winds East winds 10 to 15 mph.
Tides
Hilo Bay Low -0.1 feet 10:00 AM HST.
High 2.0 feet 04:04 PM HST.
Sunrise 6:37 AM HST.
Sunset 6:27 PM HST.

Forecast for Big Island Leeward


Shores Tonight Wednesday
Surf Surf
PM AM AM PM
West Facing 2-4 2-4 2-4 1-3
South Facing 1-3 1-3 1-3 1-3
TONIGHT
Weather Mostly sunny until 6 PM, then mostly
cloudy. Hazy.
Low Temperature In the upper 60s.
Winds West winds around 5 mph early in the
afternoon, becoming light and variable.
Tides
Kona High 1.5 feet 04:04 PM HST.
Low -0.1 feet 09:57 PM HST.
High 1.9 feet 04:18 AM HST.
Kawaihae High 1.4 feet 04:36 PM HST.
Low -0.1 feet 10:20 PM HST.
High 1.9 feet 04:38 AM HST.
WEDNESDAY
Weather Partly sunny. Hazy.
High Temperature In the mid 80s.
Winds Light and variable winds, becoming west
around 5 mph in the afternoon.
Tides
Kona Low -0.1 feet 10:37 AM HST.
High 1.6 feet 04:42 PM HST.
Kawaihae Low -0.2 feet 11:01 AM HST.
High 1.6 feet 05:13 PM HST.
Sunrise 6:41 AM HST.
Sunset 6:31 PM HST.

The current moderate northwest swell will continue a gradual decline through Thursday. A small west-northwest swell will arrive on Friday and hold through the weekend, followed by a small north-northwest swell early next week. Choppy east shore surf will build to near seasonal average by Wednesday as trade winds strengthen over and east of the islands. Little change is expected along east facing shores through the weekend, followed by a possible decline early next week if winds veer southerly. Surf along south facing shores will remain small to tiny through the weekend, and some islands may an increase in choppy surf if southerly winds develop early next week.

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NORTH EAST

am        pm  

ARTICLE CONTINUES BELOW AD
ARTICLE CONTINUES BELOW AD

Surf: Minimal (ankle high or less) surf.

Conditions: Semi choppy with ESE winds 5-10mph in the morning increasing to 10-15mph in the afternoon.

NORTH WEST

am        pm  

Surf: Minimal (ankle high or less) surf.

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Conditions: Clean in the early morning with ESE winds less than 5mph. Bumpy/semi bumpy conditions move in during the morning hours with the winds shifting W 5-10mph.

WEST

am        pm  

Surf: Minimal (ankle high or less) surf.

Conditions: Semi glassy in the morning with N winds less than 5mph. Bumpy/semi bumpy conditions for the afternoon with the winds shifting WNW 5-10mph.

ARTICLE CONTINUES BELOW AD

SOUTH EAST

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am        pm  

Surf: Minimal (ankle high or less) surf.

Conditions: Light sideshore texture in the morning with NE winds 10-15mph. This becomes Sideshore texture/chop for the afternoon.

Data Courtesy of NOAA.gov and SwellInfo.com



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Hawaii delegation continues to blast U.S. attack on Iran | Honolulu Star-Advertiser

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Hawaii delegation continues to blast U.S. attack on Iran | Honolulu Star-Advertiser




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