re: Hawaii Passes New Millionaire Tax Bracket to Close Budget Gap

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The rates that these states are trying to "normalize" are nuts. "It's just 2%"...a few years later "it's just 1%"...a few years later "it's just 2% more"...

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Oh I don’t disagree at all. Even 11% seems egregious to me.

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I don't think a 2% tax increase (it was previously 11%) will compel Zuck and Ellison to move. They'll continue to find ways to limit their taxable income.

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Do y'all not understand how state income taxes work? Just because you have a vacation home in a state does not mean you pay state income taxes in that state.

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Just because you have a vacation home in a state does not mean you pay state income taxes in that state.

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I decided to search, because I had a hunch, and well.....

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Yes, Hawaii is actively increasing property taxes on second homes and luxury, non-owner-occupied properties in 2026. Counties are utilizing higher tax tiers for residential properties valued over $1 million to $2 million, specifically targeting investors, vacation homes, and luxury "ultra-wealthy" properties to fund local infrastructure and address housing shortages.

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Yes...and that is different from what the OP stated in raising the income tax for those earning over a million.

.....but this is on par for these people, they will tax the rich by any means necessary!

Yes but it actually fricks them over as well in the longer term. Prices go higher to accommodate new taxes and they take the hit directly

Puerto Rico about to gain a few millionaires

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I've heard people talk about this tactic, but I'm not understanding how they pay these loans off then, if not with income from other means.

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I think this is how some of it works. The person has a business worth $100 million, they take no salary, they borrow $10 million and live off of that. The banks will sometimes give them long term loans that are interest only loans or is some cases they don't have to pay until the loan matures in 5 to 10 years. In that time, their business is now worth $200 million, they take out a $20 million loan, pay the first one off and now repeat the process. They do it with stocks, business that they own and real estate. Corporate McDonalds does this, they are not in the hamburger business, they are in the real estate business.