Kalus Proposes Numerous Tax Cuts But Not One Program Reduction

Kalus Proposes Numerous Tax Cuts But Not One Program Reduction

GOP candidate for Rhode Island governor Ashley Kalus unveiled a 12-page economic development plan that included tax cuts and the promise to reduce regulations.

However, she could not identify the fiscal impact of the tax cuts and could not identify any existing programs that she would cut or eliminate.

 

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Proposed Tax Cuts

Kalus, in her plan, said, “Diving into the numbers, the median household income in Rhode Island is $70,3052 — while the largest share of taxpayers in the state make $50,0003 or less. This plan will call for a structured tax reduction plan. The largest reduction will be for the state’s lowest earners — slashing the personal income tax for residents earning $50,000 or less from 3.75% to 0%.”

“For filers making less than $100,000, their tax bill will be cut to 2%. The reality is people are suffering, and the cost of living in Rhode Island is making it impossible for people to find financial freedom. We have the means to be one of the most affordable states to live, work, and raise a family — but it takes leadership and vision to get us there,” according to Kalus’ plan.

She also proposes cutting the corporate tax. “Currently, we have a lower corporate tax rate (7.00%) than Massachusetts (8.00%) and Connecticut (7.50%). As Governor, I will fight any attempt to raise this rate, and work to find ways we can lower it to further increase our competitiveness,” according to Kalus.

And she proposes “lower sales tax to 6.25% from 7% to bring in line with MA (CT’s rate is 6.35%) as well.”

The Kalus campaign could not identify the fiscal impact -- the amount of lost revenue -- as a result of the proposed tax cuts. 

 

Cannot Identify Any Program Cuts

In response to questions about the fiscal impacts of the proposed tax cuts, the Kalus campaign said in part that the economy would grow so much that the lost revenues would be replaced by the growth of the overall economy and de facto from other tax revenues.

“To account for the lost revenue, we will take measures to protect the budget while also growing our economy to ensure fiscal stability,” said Kalus.

She added, “I will make state government more efficient and less corrupt; appoint an inspector general to identify waste, fraud, and abuse…”

When asked by GoLocal if she could Identify one program she would cut or eliminate, the Kalus campaign went silent.