November 5, 2009
Drowning in Desire for Other People's Money
The state of Rhode Island's revenue take is like a chest of treasure sinking to the bottom of the ocean, and some folks are intent on having us all chase it to the bottom:
"We've already been cutting, cutting, cutting," said one of the few people watching Wednesday's discussion, Russell Dannecker, fiscal policy analyst for the Poverty Institute at Rhode Island College. He cited a study by State Policy Reports that reports 29 states have proposed tax increases for the coming fiscal year.
Frankly, Rhode Island has to stop "cutting, cutting, cutting" around the edges and give some serious thought to wholesale excisions of programs. Information from the first link above illustrates why that is the necessary direction:
Among the highlights of Wednesday's presentation:
- Collections from the state's business-corporation tax plunged to $4.5 million from $14.8 million in the same period a year earlier, a $10.3-million drop.
- Sales-tax collections fell by $19.77 million, or 6.6 percent, to about $278.6 million.
- Net receipts from the personal-income tax (after refunds and other adjustments) fell by $14.3 million, or 4.5 percent, to $307.8 million.
The number 1 job of the state government must be to do whatever it can to help Rhode Islanders make money. The quick first step should be to cut taxes, and the larger step, still expedited, must be to slash regulations and mandates. We cannot afford to govern ourselves as we've been doing.
Interesting article indeed... I am glad I came here to check out right-wing world. Dont worry I am an independant and I agree with you...sort of. You are exactly right that we need to cut taxes especially the corperate tax and get some jobs in here. More jobs equates to more income tax and more money in peoples pockets to spend thus generating sales tax. Win win, right.... Not so fast. Here is the issue I have.. the common there here is tax tax tax. The biggest problem with our state is that tax is the number 1 and primary source of income, with Twin River in the distant second spot. We as RIers have is so tough is because when push comes to shove the only place the state can go for cash is taxes...its all there is. In a sense we dont even have an economy. When Twin River finally closes up, yes I believe it will happen eventually that will be the ultimate nail in the state money coffen and guess where that shortage will be gotten from? You got it, taxes. I dont know what we can do at this point but the state needs to diversify its income big time that way the tax burden can be eased, its the ONLY way.
Posted by: Numones at November 8, 2009 10:09 PM