March 19, 2008

Taxation

Expanding the Sales Tax

Marc Comtois

With a hat tip to Dan Yorke, below are some of the new things that will now fall under the expanded sales tax being proposed by the tax-and-spenders in our Legislature, under the, ahem, "ECONOMIC GROWTH AND FAIRNESS ACT OF 2008". Oh sure, there is this.....

Commencing on January 1, 2010, the rate shall be six and one half percent (6.5%). Commencing on January 1, 2011, the tax rate shall be six percent (6%). Commencing on January 1, 2012 and thereafter the tax rate shall be five and one half percent (5.5%).
Until we decide that we "can't afford" that reduction.

And then there is the fact that the Income Tax is going to INCREASE, anyway:

For the period January 1, 2002, and thereafter through July 1, 2008 the rate shall be twenty-five percent (25%) of the taxpayer's federal income tax liability. For the period January 1, 2008, and thereafter, the rate shall be twenty-seven and one-half percent (27.5%) of that taxpayer's federal income tax liability, as defined in subsection 44-30-2(b).
And the flat tax option will be terminated (p.37) and capital gains taxes are going back up (p.39-40, 47). Yup, why cut government when we can tax more?

OK, here's the almost complete list of new "revenue sources" and revoked exemptions.

  • The furnishing of dry cleaning and/or laundry services.
  • The furnishing of linen and uniform supplies.
  • All services provided to domestic animals except those provided by a doctor of veterinary medicine.
  • The furnishing of watch and jewelry repair services.
  • Appliance repairs.
  • Any public golf course green fees and private golf country club fees and membership dues.
  • Marina fees and services.
  • Health club fees and services.
  • Any temporary employment agency fees and services.
  • Telemarketing bureau fees and services.
  • Telephone answering services.
  • Any security system fees and services except those provided by a locksmith.
  • Any janitorial fees and services.
  • Any landscaping fees and services.
  • Any carpet cleaning fees and services.
  • Any swimming pool maintenance fees and services.
  • Any solid waste hauling fees and services.
  • Any porta-pit rental fees and services.
  • Payroll fees and services.
  • Any tax preparation fees and services.
  • Any architectural fees and services, including landscape activities fees and services.
  • Any interior design fees and services.
  • Any management consulting fees and services.
  • Any marketing research and polling fees and services.
  • Any real estate property management fees and services.
  • Any motion picture admission tickets.
  • Any limousine service and usage fees.
  • Any dating service fees.

    And here are some of the things no longer exempt:

  • Newspapers
  • Containers
  • Camps with fewer than 75% of Rhode Islanders in attendance
  • "Certain Institutions" - health care facilities
  • Trade in value of Motor Vehicles
  • Precious Metal Bullion
  • Compressed Air
  • Promotional and product literature of boat manufacturers
  • Equipment used for research and development
  • Banks and Regulated investment companies interstate toll-free calls
  • Mobile and manufactured homes generally
  • Horse food products
  • Non-motorized recreational vehicles sold to nonresidents
  • Aircraft
  • Dietary Supplements
  • Sales by writers, composers, artists
  • Sales to common carrier for use outside state
  • Buses, trucks and trailers in interstate commerce

    Other

  • 2% tax for all recipients of accounting services provided by accountants and legal services
  • Historical Bldg Business tax credits are discontinued
  • Various exemptions outlined in Sections 44-11-12, 44-11-14.5 and 44-11-43 of the General Laws in Chapter 44-11 entitled "Business Corporation Tax" are repealed.
  • Various exemptions outlined in Sections 44-17-1 and 44-17-2 of the General Laws in Chapter 44-17 entitled "Taxation of Insurance Companies" are repealed.
  • Biotechnology investment tax credit

    3:30 PM | TrackBack (0)
    • Comments, although monitored, are not necessarily representative of the views Anchor Rising's contributors or approved by them. We reserve the right to delete or modify comments for any reason.

    When is the revolt?

    Posted by: Greg at March 19, 2008 3:39 PM

    Until we decide that we "can't afford" that reduction
    XXXX
    such cynicism!
    LOL
    KEEP RAISING TAXES
    VOTE DEMOCRAT

    Posted by: Mike at March 19, 2008 8:22 PM

    Classic Negotiating 101 ... or "bait and switch" if you prefer.

    Throw this bombshell out there.

    Then when not all of it is actually enacted the pols will proclaim that they stood up for the taxpayers ... "just look at how bad it could have been; we did you a favor by only raising X, Y and Z taxes!"

    Forget oceans; our state motto should be: "Rhode Island: The Bend-Over State."

    Posted by: Tom W at March 19, 2008 10:50 PM

    RI legislators are heavily invested in big government. Has anyone ever done a study of all their kids, spouses, and relatives who are employed by the state of Rhode Island? I bet such a study would blow you away. And why does the state of RI need 15,000 workers to administer such a tiny plot of land? New Hampshire has the same number of workers and it is much larger. Carcieri should have cut thousands of state workers, not hundreds. A furlough is a joke.

    Posted by: Citizen Critic at March 23, 2008 2:29 PM
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