House passes $8.7B budget that cuts corporate, estate taxes, pays 38 Studios bonds

THE $8.7 BILLION budget approved by the R.I. House of Representatives early Friday morning retained many of the measures unveiled in the proposed bill last week, including $12.3 million to pay the 38 Studios moral obligation bonds and a cut to the state's corporate tax rate. / COURTESY JACK NEWTON, VIA <a href=FLICKR/ CREATIVE COMMONS" title="THE $8.7 BILLION budget approved by the R.I. House of Representatives early Friday morning retained many of the measures unveiled in the proposed bill last week, including $12.3 million to pay the 38 Studios moral obligation bonds and a cut to the state's corporate tax rate. / COURTESY JACK NEWTON, VIA FLICKR/ CREATIVE COMMONS"/>
THE $8.7 BILLION budget approved by the R.I. House of Representatives early Friday morning retained many of the measures unveiled in the proposed bill last week, including $12.3 million to pay the 38 Studios moral obligation bonds and a cut to the state's corporate tax rate. / COURTESY JACK NEWTON, VIA FLICKR/ CREATIVE COMMONS

PROVIDENCE – The R.I. House of Representatives early Friday morning passed an $8.7 billion state budget for fiscal 2015 that cuts some taxes, makes a payment on the 38 Studios bonds and bars communities from setting their own minimum wage.

The budget survived nearly nine hours of debate to emerge almost exactly as unveiled by the House Finance Committee a week ago.

Opposition to a $12.3 million 38 Studios bond payment generated the largest number of amendments to derail the budget, but in the end they were comfortably thwarted by House Speaker Nicholas A. Mattiello’s leadership team.

Article 1 of the budget, which contained the 38 Studios payment, passed by a vote of 59-15.

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A proposal to appoint a special prosecutor to investigate 38 Studios failed after receiving 11 votes.

Other areas of the budget drawing opposition included a 1-cent increase in the gas tax, plus future indexing to inflation, which was ultimately passed to help pay for the elimination of Sakonnet River Bridge tolls.

If passed by the Senate, the budget will reduce Rhode Island’s corporate tax rate from 9 percent to 7 percent while requiring companies to include revenue from subsidiaries in calculating their tax payments.

The budget raises the exemption cutoff for estate tax payments from $921,655 to $1.5 million while eliminating the “cliff” after which estates just above the threshold were charged on their entire value.

Progressive House members tried to kill the budget provision preventing cities and towns from raising their minimum wage above that of the state, but were unsuccessful.

The minimum wage measure came in response to a proposed Providence ordinance to create a $15 per hour minimum wage for the city’s hotel workers.

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