Here’s the package of tax-increases proposed by the “Campaign for Rhode Island Priorities” for closing the state budget deficit…
Some comments, in no particular order…
- Stop the elimination of the 5% capital gains tax scheduled for 2008. Massachusetts, which eliminated its own capital gains tax suffered so badly, and fell so far behind in meeting the needs of its people, it rescinded the law and now tax long-term gains at 5.3%.
- Close abusive corporate tax loopholes.
- Broaden the sales tax to reflect our changed economy by taxing selected services such as golf, marina and fitness memberships.
- Eliminate sales tax exemptions for luxury items like private aircraft.
- Freeze the alternative flat tax – an entitlement benefiting only 13,119 of the wealthiest Rhode Islanders. When fully phased in, the flat tax will cost Rhode Island as much as $73 million!
- Place a moratorium on ‘06 tax legislation that artificially limits the ability of cities and towns to meet their own needs – in the face of stagnant state support to cities and towns for education
- Impose a tax on the capital gains from short-term land sales. This legislation exempts owner-occupied homes but targets short-term investors that flip properties for large profits, driving property rates and rents out of reach for many Rhode Islanders.
- Implement ‘06 legislation that sets up a state office of revenue policy analysis.
This set of "solutions" will ensure further shortfalls in the future. When presented options, why would any business choose to start or expand here (other than inertia)? Why would any individual of considerable wealth
elect to reside (and thus spend) here when other options are available?
The left is going to the well too often with class envy tax policy. Nationally, there are few options, but in a state offering little to retain the "wealthy", driving them out will prove disastrous. We already see young professionals leaving the state in search of good work.
On some level, GA leadership might be aware of this (if cloudily) judging by their resistance to the ideas.
It seems as though condemning "profits" and "wealth" has become as fashionable and accepted as ridiculing the Catholic Church.
Posted by: Roland at March 6, 2007 10:35 PMApparently we do not really want to grow the economy in RI by attracting new businesses because no owner would come here to get the heck taxed out of them so illegal aliens and the rest of the have nots could be given more free benefits. When will people realize that by increasingly taxing higher wage earners we do a disservice to our state and drive business away. When those businesses either relocate or never come here then the rest of the jobs this state would have had go away?