Now Here’s a Tax Bill That Ought to Pass
With the growing stack of tax-raising bills, it’s good to know that the General Assembly will at least have to address a different approach (emphasis added)
In an effort to bring some much needed tax relief to Rhode Islanders, while generating revenue in this era of hundred million dollar budget deficits, Representative Victor Moffitt (R-Dist. 28, Coventry) has introduced a bill that would lower the state sales tax to 5% from the current rate of 7%.
“By lowering the sales tax, individuals would be more inclined to buy products and companies would be more inclined to do business in Rhode Island, which would create jobs, and that would generate more income for the state than the current tax structure does at its present rate,” said Representative Moffitt. “Let me be clear, this is not a move to lower and broaden the sales tax structure. There is no broadening of the sales tax in my proposal.”
Recently, the Tax Foundation ranked Rhode Island 50th in the Unites States in Business Tax Climate Index. That ranking, taken in context with our current and projected budget crises, lends credence to the idea that the solution to Rhode Island’s fiscal problems is lowering taxes, as opposed to raising them.
“The current sales tax rate of 7% was established back in the 1990’s during the banking crisis, and at the time was said to be temporary,” said Representative Moffitt. “Given our high tax burden, and our stagnating economy, it is time that the tax rate be lowered to so that we can be more competitive with our neighboring states.”