Hawaii is a beautiful place. It’s hard for me to think of a more beautiful or relaxing place for a vacation.
Residents of the Aloha State aren’t likely to be gamblers. Hawaii prohibits all forms of gambling. Of course, if a Hawaiian makes a trip to Las Vegas and has some winnings, those are still taxable on their Hawaiian income tax return.
Hawaii’s state legislature is among the most liberal in the country. Today’s liberalism means high taxes and nannyism. Earlier this year Hawaii’s legislature passed an increase in the marginal income tax rate to 11% on individuals earning more than $200,000. That legislation was promptly vetoed by Republican Governor Linda Lingle and just as promptly the veto was overridden by the Hawaiian legislature.
What I hadn’t heard about until today was House Bill 1495. This bill would make gambling losses ineligible for tax deductions. This bill easily passed the state legislature; Governor Lingle has until July 15th to either sign the bill or veto it.
If you’re a Hawaiian resident I urge you to contact the governor’s office and let them know your feelings about this measure. If you’re an amateur gambler and this legislation becomes law, you will face a very taxing situation.