We got into a discussion about the high taxation in Hawaii and I thought it would be worthwhile to dive into the fundamentals of why taxes are high in Hawaii and why they will most likely be going higher, especially for visitors.  Let me know what you think!


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we got a good one for you today
why are taxes high in hawaii
now you know hawaii has some of the
highest taxes in the country uh our
income tax is 11
if you’re a visitor
you’re going to pay a 13 tax
on hotel combinations not to mention uh
rental car taxes and all that kind of
uh we have a uh instead of a sales tax
in hawaii we have what’s called an
excise tax and it looks like a sales tax
so you come here and you say oh wow
hawaii only has a four percent sales tax
it’s a four percent excise tax excise
that means that everything is taxed at
four percent everything everyone pays a
tax on four percent on everything they
buy so what this ends up being it’s a
tax on attacks on attacks
some people some economists feel that uh
this actually accounts for a 10
uh increase
on the cost of everything in hawaii so
why is that
why does hawaii have the highest
probably the highest taxes in the
country if if not the highest
tax in the country if you’re considering
a move here
what does it tell you about our culture
so i’ve come up with four key reasons
why we have such high taxes in hawaii
and the fourth one is going to blow your
let’s get on in on this
i’m peter k
and i am living the dream in hawaii look
what a beautiful place this is been here
since the 80s and i connect with people
that want to live in hawaii
so if that’s you this is your channel
you want to click and subscribe and
click on the notification
we get a video every couple weeks so why
are taxes so high in hawaii
well the first one’s an easy one
number one
we’d rather tax you
sorry it’s the way it is
see everybody is okay
with someone else paying taxes
it’s when you got to pay them that we
have a that you have a problem right but
if i get someone else to pay tax i’m all
for it so this is really just a simple
thing of human nature
i’d rather have someone else pay
your visitor i live here
if i have a choice between me paying the
tax or you pay the tax i’m gonna have
you pay it and that’s why we have a 13
tax nowadays
on the hotel bill
and chances are this is just the
beginning there’s talk about
additional fees
uh no matter what you do parks hikes et
cetera a lot of stuff that used to be
ain’t gonna be free no more because we’d
rather tax you than us reason number two
people in hawaii
don’t really want
the visitor industry that they used to
they want less people
and the way to get less people
is to charge more you know kovid really
changed things over here
and people in hawaii are now
not really sure
that they want to have the kind of
visitor industry that they used to have
we’re not really sure that we want to
have tourists all over the place in fact
people probably don’t and so
that means we’re going to bump up the
prices we’re going to bump up the prices
because we’d rather charge more and have
less people come here than keep it cheap
and have a lot of people show up
that’s an important trend that’s
developing i mean you know during kovid
man we had there was the peaches were
empty there was no traffic
you know there was no crowds it was
and now we’re like man do we want to go
back to there do we want to go back to
those crowds all over again
now let’s charge them more now there was
a couple things very interesting things
that happened during covid
that indicated to us
that hawaii was way underpriced
underpriced now how do we know that
well here’s an example
rental cars
there was a shortage of rental cars and
some and rental cars were were going for
a day now this is like a 50 a day car in
the old days now i was going for 300 and
people were paying for it so what does
that tell you
he’s by definition we’re way underpriced
the genie is out of the bottle now
people know we know that people will pay
and if we know they’re going to pay more
we’re going to charge more
you know this sounds kind of cruel right
i mean you know but this is
this is called the laws of economics
right this is the way it is people are
willing to pay more
and hawaii has been under charging so
get ready prices are going up they
happen and they will continue to i mean
you know dylan said it so in one sense
you know hawaii’s been
really undercharging
and what would anybody do if they
thought that they were under charging
you know what would you do
if you thought that you were getting
paid way less than you could be paid
you’d ask for a higher price
human nature
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there are no political consequences of
tax increases in hawaii the sad truth is
that we in hawaii
keep reelecting people who keep raising
our taxes dylan shared this line from
benjamin franklin so if you think about
there’s no political consequences
for raising taxes
and making this place more expensive
it kind of works out to be this perverse
to keep doing it right because think
about it you’re running for office and
you could promise all this stuff that
you’re going to give to people
which you know is going to require tax
increases but you also know that doing
that is not going to hurt your election
so why not so by this bizarre thing of
us reelecting people that keep raising
our taxes we’re incentivizing them to do
more and that’s number three why our
taxes are so high yeah beautiful view i
love this view of the valley i’m in
manoa valley right now it’s one of the
most beautiful places on oahu manoa
valley gets a rainbow
every day i had an office here once and
every day we had rainbows it was
unbelievable there’s actually a hawaiian
legend story about rainbows in manoa
valley you should go look that up you
might like it i love the mountains over
here you’re cruising right next to it
it’s such a beautiful place and it’s
always so green it rains here often
because it’s it’s a deep in the valley
so it catches morning rains it’s a
beautiful place
aloha manoa valley aloha manoa valley
reason number four
the one you’ve been waiting for the mind
blower on why we have high taxes in
hawaii are you ready
the reason why
we have high taxes in hawaii is because
the people of hawaii
don’t care
we don’t care that’s the mind blower
taxes are high this place is super
because we don’t care we’ll pay the
we love living in hawaii so much we
don’t care what the price tag is we’ll
pay it
just like you visitors who will come
here and pay the 300 a day rental on the
car and are paying the 13 tax on the
hotel and are going to pay higher fees
to get into the parks you’re paying it
because it’s worth it we don’t care that
we have some of the highest priced
housing in the country we don’t care
that our groceries
are some of the highest cost groceries
in the country don’t care we don’t care
that we have some of the most expensive
real estate in the country we don’t care
because we’ve chosen to live here for
this amazing place
and we pay for it
it’s actually there was a term that was
brought up a long time ago is called the
price of paradise
and it’s the price of paradise
and we pay it and we don’t care and you
know here’s some a bit of evidence
we have the lowest
if not the lowest voter turnout rate
certainly one of the lowest voter
turnout rates in the country what does
that tell you
we don’t care
now the sad part
and this is tragic
the sad part
is that
of course
not everyone can afford to live here
and what’s worse
is that a lot of families that have
lived here for generations
now can no longer afford to live here
that is why
hawaii has one of the highest
exodus or out migration rates in the
country i believe as of this video 2022
uh we are number three just behind
illinois and new york hawaii is number
in terms of people leaving the state we
actually have a
10 000 more people leave hawaii than
come to hawaii every year
which is why i put together this whole
online community
to help you avoid that again link in the
description click on get on the
so that folks is number four
the mind blower
the reason why taxes are high is because
we don’t care all right you got a
question for me
click on the link in the description
there’s a form there for questions
submit your question make sure you leave
me your name and where you’re from so i
can give you credit
and we’ll see you next time i am peter k
and i am living
in probably the most expensive place in
the world with the highest taxes in the
world with the lowest voter
participation in the world and i don’t
because i love this place
and that’s the way it is