Budget looks worse, Usual Suspects Scream for Higher Taxes
It turns out that the budget cut proposed by Governor Carcieri won’t go far enough, so what is the solution? The ProJo’s Steve Peoples went to the usual suspects:
“There’s no easy fixes. The programs that all Rhode Islanders support are in danger,” said Ellen Frank, senior economist at Rhode Island College’s Poverty Institute. “If you don’t look at revenue, you’re not going to solve the problem.”
Frank, like Guillette and Karen Malcolm, the head of Ocean State Action, pointed to the state’s tax system, especially the capital gains tax (set to be phased out next year at an estimated cost of $25.4 million), the historic tax credit (the state will distribute credits worth an estimated $82.5 million this year — the cost will likely come next year) and the television and film credit ($10 million).
The governor, no surprise, isn’t about to accept higher taxes as a solution. Hopefully, the leadership in the General Assembly won’t cave, either. It’s a spending, not a revenue, problem.