RISC Calls for Phased in Reduction of State's Corp Tax Rate

RISC Calls for Phased in Reduction of State's Corp Tax Rate

The RI Statewide Coalition (RISC) is commending Governor Chafee for holding the line on overall taxes and calling for a phased in reduction of the state’s corporate tax rate, but also expressing disappointment about the lack of any galvanizing proposals to set the state on an economic recovery path and reverse its long term high unemployment.

“It’s good the Governor now recognizes any new taxes would be a disaster for Rhode Island and the state will benefit from the changed corporate tax rate proposal, no question,” states RISC Executive Director Donna Perry. “But overall he failed to articulate a coherent galvanizing vision for how Rhode Island is going to reverse course out of a depressed economy, dead last rankings, and a widening inability to match its workforce with jobs. Where are the bold initiatives? They are just not there and it’s disappointing.”

RISC says the address reflected a mixed commitment to help local communities. His plan to send $20 million in state aid to local cities and towns, especially distressed communities, is an important step toward holding down the need for local tax hikes. However, RISC notes there was no mention of a planned effort to bring back last year’s municipal relief package aimed at municipal pension reform and cutting excessive personnel costs that weigh down city and town budgets. “It’s a step forward by Chafee to provide aid to communities and keep property taxes from any new hikes, however it’s concerning to see no mention of a renewed attempt at municipal relief and municipal pension reform.”

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Perry says the Governor’s proposed budget commitments to public education and infrastructure are solid pieces of his overall plan. “The state needs to continue the strides it’s making to improve the performance of its public schools, as well as reverse poor rankings for the condition of our roads and overall infrastructure and so the Governor is right to make those investments."

RISC is the state’s leading non-partisan taxpayer advocate citizen’s group.