This week’s debate over the House version of the state budget lands amid one of the most consequential and complicated fiscal situations Hawaiʻi has faced in years.

Just last week, lawmakers wrestled with whether to scale back the sweeping income tax cuts passed in 2024. Rather than eliminating them, both the House and the Senate agreed to a partial rollback, forcing the state to confront tough choices about how to close the resulting gap.

Of course, any adjustment risks being framed as a broken promise — a vulnerability Republicans have been quick to seize on. Still, the issue runs deeper than political messaging.

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The 2024 tax cut bill, Act 46, began as a solid idea. Gov. Josh Green’s proposal would have adjusted for inflation, expanded child care credits, and helped ALICE households. By the time it passed, however, the bill had changed significantly.

Lawmakers removed the inflation adjustment and the additional child care credit, while also widening tax brackets for all. During the final floor debate, some House members voiced concern that by 2031, the top 1% of earners, who make about $1.5 million, would receive a $12,800 tax break, while the bottom 20% of earners would receive only $469.

Put simply, Act 46 was not narrowly focused on relief for working families. It was a broad tax cut that happened to include them.

The Senate’s current plan moves closer to that original goal. Senate Bill 3125 limits tax cuts to households earning less than $350,000 for couples and $175,000 for individuals, while also extending the earned income tax credit and the food excise tax credit for low-income families. Similarly, House Bill 2306 scales back the 2024 cuts and expands tax credits aimed at working families.

The debate over which approach to take will likely continue into the session’s final days, but these alternatives offer a responsible path without eliminating the cuts entirely. Lawmakers can still fulfill their promises to working families without granting large tax breaks to those earning $800,000 or more.

I’m fine with that compromise, but clearly, some legislators aren’t. Two of the three Republicans in the Senate were the lone votes against Senate Bill 3125, and House Bill 2306 received no votes from the entire Republican caucus and two Democrats.

I get it. It’s an easy “no” vote that will be popular with voters. I’ve taken a few of those myself.

But as voters, we can’t forget that legislators don’t make these decisions in a vacuum. Hawaiʻi’s tough financial situation, a hostile federal government and a chaotic global economy must shape every choice lawmakers make, regardless of party.

Every legislator should advocate for policies and propose solutions that help our state weather the current crisis. That requires providing alternative ideas for balancing the budget.

Democratic lawmakers didn’t agree with the governor’s proposal to postpone the entire package of cuts. So, in the Senate, preserving tax cuts for working families prompted Senate Ways and Means Chair Donovan Dela Cruz to propose practical fixes: ending unused tax credits, cutting vacant government jobs, and reallocating extra money from special funds to find the money elsewhere.

Meanwhile, in the House, lawmakers advanced House Bill 2049, which raises taxes on homes sold for more than $2.2 million. Most House Republicans also voted against that bill.

Which brings me to my point: if Republicans oppose eliminating tax breaks and a tax on luxury homes, how do they propose balancing the budget? The Senate Minority Package only offers a bill to cap state officials’ salaries. The House Minority Package doesn’t include any bills that would save the state money or generate new revenue, though it does include a bill to eliminate all income taxes, which would increase the deficit by over $3 billion.

These are not solutions to our present crisis. If Republicans are serious about balancing the budget, they need to stop scoring political points and offer real solutions. This week’s budget debate is an opportunity for them to present concrete proposals and engage with the realities of governing.

To be clear, these are the realities. The “One Big Beautiful Bill” cut almost $1 trillion from Medicaid and shifted SNAP administrative costs to states, costing Hawaiʻi about $1.8 billion over three years. Federal civilian payroll in Hawaiʻi declined by 8% in 2025, resulting in a loss of approximately 2,800 positions.

Tariffs are forcing Hawaiʻi businesses to raise prices for consumers or risk their own survival.

There’s also the unpredictable impact of the Iran war, which led the Council on Revenues to keep its fiscal year 2027 forecast steady, despite positive economic signs. Oil prices are already hovering around $100 a barrel due to the Strait of Hormuz blockade. If the war ends tomorrow, that’s unlikely to impact the state’s bottom line. But, if the fighting drags on, the council is prepared to factor in a potential increase in inflation and downturn in tourism when they meet again in May.

The harsh reality is that legislators are being forced to choose between keeping tax promises and funding social programs because of decisions made in Washington, not Honolulu. And I haven’t heard many local Republicans criticizing those choices.

In that context, this week’s debate over revenue generation and the coming debate on the budget are more serious and complex than they may appear. And Republicans have a responsibility to engage beyond political talking points.

Adjusting income taxes, raising conveyance and capital gains taxes, and targeting credits could give Hawaiʻi a fairer, more progressive tax system — one where those who have more contribute more. That’s the system I want.