By Bob Plain in RIFuture.org
The state could collect a much-needed $66 million in additional
revenue by raising the income tax rate the richest 2 percent of residents pay
by 2 percent. That’s the message tax equity advocates announced at a press conference at
the State House last week.
“We can’t keep going down this failed path,” said Kristina Fox,
who works for Ocean State Action. “RI needs a more equitable tax code that
brings in revenue fairly to fund public programs and services that we all
benefit from.”
Rep. Maria Cimini and Senator Juan Pichardo, both of Providence, are sponsoring a bill that would roll back some of the tax cuts bestowed on the richest Rhode Islanders during the previous decade. Their proposal would raise the rate from 5.99 percent to 7.99 percent of those who make more than $250,000 a year.
“This is a common sense solution to the biggest problem facing
our state,” Fox said.
Tax advocates say the additional revenue could be used to
increase state aid to cities and towns. When former Gov. Don Carcieri and the
legislature gave tax breaks to the rich, they did so in part by slashing aid to
cities and towns. This is what led to the financial catastrophes in Providence,
Central Falls, Woonsocket and West Warwick.
Not only did Rhode Island’s urban areas struggle because of the
rapid decline in state aid, but the rationale for the tax cuts never
materialized. In fact, unemployment in Rhode Island has skyrocketed since the
tax cuts of 2006 and 2010 and the cuts in state aid, which you can see in this
chart:
Bob Plain is the editor/publisher of Rhode Island's Future. Previously, he's
worked as a reporter for several different news organizations both in Rhode
Island and across the country.
