Just yesterday Hawaii became the first state to raise the minimum wage to $18/hr by 2028. The minimum will be the highest dollar amount among the rest of the United States. However, states automatically boost their minimum wage when the cost of living increases. By the time the law is implemented, states like California - where the minimum wage is currently $15/hr. - may have a higher minimum wage in the six years.

Currently, the state of Hawaii has a minimum wage of $10.10 an hour and the law promises to raise the minimum by increments over the next several years, starting with $12 in October. The bill would also make the earned income tax credit permanent and refundable. This will aid low and moderate-income workers cut their taxes and potentially increase the state’s tax return/refund.

Hawaii’s governor also signed a bill that will provide a one-time tax refund. Those earning less than $100,000 in 2021 and couples earning less than $200,000 will get $300 per exemption. A family of four can possibly receive up to $1,200. The families on the flip side of the coin making more than $200,000 will be eligible to receive $100 per exemption.

The state will also add $500 Million to the state-wide fund and sets aside $300 Million for employee pensions.