Hawaiians Rally For and Against Tax Hike Proposal

In response to a proposal for an increase in Hawaii’s excise tax, hundreds of citizens gathered at the States capital to protest. Hawaii is already one of the most taxed states in the country, so it is no surprise that local taxpayers would strongly oppose any increases. The New York Times posted a new article about the protest; you can find a snippet of their piece below.

More than 200 people gathered at the state capitol to ask lawmakers for a 1-percentage point increase in the general excise tax imposed on goods and services. The tax, known as GET, is currently 4.5 percent on Oahu and 4 percent elsewhere in Hawaii.

They waved colored signs saying ''GET'' and urged lawmakers not to eliminate jobs and services.

''The cuts are too deep. They are damaging the economy,'' the Rev. Bob Nakata, a Methodist minister, told the crowd. ''It's not just the bleeding hearts that are saying this needs to be done.''

Hawaii's money troubles have resulted in less government support for public schools, child protective services, mental health, social service providers and agriculture inspectors. Hundreds of public employees were laid off, and the rest are taking pay cuts through furloughs.

Continue reading at NY Times.com…

IRS Announces 2010 Air Transportation Tax Rates

In a new press release yesterday, the IRS announced the 2010 inflation adjustments on excise taxes for that apply to the domestic segments of taxable air transportation and to the use of international air facilities.

The Fiscal Year 2010 Federal Aviation Administration Extension Act, Part II, signed into law on Dec. 16, 2009, extends these excise taxes to air transportation that begins or is paid for no later than March 31, 2010.

These excise taxes are adjusted annually for inflation:

For 2010, the excise tax on the domestic segment of taxable air transportation is $3.70, up from $3.60 in 2009.

The excise tax for 2010 for international flights that begin or end in the United States is unchanged at $16.10.

The tax on use of international air facilities also applies at a reduced rate to departures of interstate flights that begin or end in Alaska or Hawaii. For 2010, the international air facilities tax on these flights is $8.10, up from $8.00 in 2009.

Further details on the excise taxes on air transportation can be found in Form 720, Quarterly Excise Tax Return, and its instructions.

IRS Claims Electronic Excise Tax Filing Is Coming

The IRS announced they will be adding three excise tax forms to the list of federal tax returns and schedules that can be filed electronically later this year. "Electronic filing is a key component to modernizing our tax system," claims Acting IRS Commissioner Kevin M. Brown. "Expanding e-file opportunities to include excise tax returns will help improve service to taxpayers using these forms." The IRS expects to receive the first electronically-filed excise tax return this summer, when Form 2290, Heavy Highway Vehicle Use Tax Return, becomes the first available excise tax return that can be e-filed.