Talk about taxes can feel abstract, but for families raising children in Hawaiʻi, the stakes are immediate and deeply personal: Can we afford child care? Will our family have stable housing? Will schools and support programs be there when we need them?

That’s why the Legislature should move forward with bills that raise needed revenue fairly and invest it where it matters most — our keiki and their ʻohana.

Child care in Hawaiʻi is among the most expensive in the nation, with average preschool tuition exceeding in-state tuition at UH Mānoa. At the same time, our families face rising food, transportation, and housing costs. Bills that strengthen public services and expand family supports are not luxuries — they are essential. They help ensure children have access to early learning, nutrition, and safe environments while their parents work.

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But none of that is possible without sustainable revenue. Moving forward with unaffordable tax cuts risks undermining the very services that our hardworking families depend on.

The governor’s income tax bills, House Bill 2306 and Senate Bill 3125, take a necessary approach by pausing future income tax cuts that the state can no longer responsibly afford. Senate and House leadership have thoughtfully amended these bills to balance tax relief with fiscal responsibility, especially important in these uncertain times.

House Bill 2049 builds on this approach by increasing the tax on sales of multimillion-dollar properties, also known as the conveyance tax. It lowers the tax rate for properties under $2 million, making life here a little more affordable for middle-class families, while ensuring high-value transactions, often driven by out-of-state investment, contribute more to the public good. In a state where speculative real estate has helped push local families out, this is a needed step.

House Bill 1850 adds another key piece by closing a loophole that allows income from wealth — profits from investments called capital gains — to be taxed at a lower rate than income from work. Hawaiʻi is one of only nine states with this loophole, and 97% of the revenue from closing it would come from the top 5% of earners. Closing this loophole would ensure that those with the greatest ability to pay contribute more fairly. 

Let’s be clear: these bills do not eliminate tax relief for working families. They preserve benefits for low- and middle-income households while pausing the future cuts that would disproportionately benefit the highest earners. If they aren’t paused, the richest 1%, with an average income over $1 million, will get an average tax cut of over $12,000 a year by 2031, and cost the state more than $1.4 billion a year. 

For working parents struggling to afford child care and the cost of living, stable services matter far more than future tax breaks skewed toward the top. At its core, this is about priorities: Do we prioritize tax cuts that tilt toward those at the top, or investments that make it possible for families to raise children in Hawaiʻi?

Some say that adjusting future tax cuts breaks a promise. But conditions have changed. Hawaiʻi faces economic uncertainty, due to federal funding cuts and rising costs. That means adapting, not locking the state into commitments that could force cuts to essential services.

Others think lawmakers should find another solution. These bills are part of the solution. They raise revenue in a targeted way and preserve existing programs rather than shifting more financial burdens onto working families. 

Some also claim that taxes hold back “job creators.” But strong families are the foundation of a strong economy. When parents can’t afford child care, they leave the workforce. When families can’t afford housing, they leave the state. Stable revenue supports affordable early learning programs, expands child care tax credits, and builds healthier communities.

Public trust comes from facing reality and making wise decisions — not from sticking rigidly to outdated plans. If unaffordable tax cuts lead to furloughs and cuts to schools, child care, or food programs, that would do far more damage to trust than adjusting course now.

Hawai‘i has a choice: a future where children have what they need to thrive, parents can work, and families can afford to stay — or one where essential supports are weakened. Choosing to invest in our keiki is not a broken promise. It is a commitment to Hawaiʻi’s future.