Not Still, but Still, 6 Percent

Barrie Shore, of Providence, is right to call the Providence Journal out on its inaccurate reference to Rhode Island taxes:

The Journal has perpetuated the myth that Rhode Island higher-income taxpayers are enjoying a reduction in the top rate, to 5.99 percent from 9.90 percent. The truth is that as the top rate has shrunk from 9.90 percent to 5.99 percent, the flat tax at 6 percent has disappeared. That means that the lowering of the tax rate is illusionary. The 6 percent effective tax rate is still 6 percent. Then the Journal and politicians have congratulated themselves on a lowering of the tax rate, which did not occur.

It’s actually worse than that, because the flat tax had been sc heduled to drop to 5.5% this year, so judged in terms of what the tax rate would have been without action, the General Assembly and Governor Carcieri actually increased the top effective rate.
Such are the complicated schemes of government that an increase can be proclaimed a decrease.

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