From stunning coastlines to a world-class culinary scene, the Ocean State has so much to offer everyone who visits and lives here. Unfortunately, our high cost of doing business is a burden on all of us, hindering our growth and success.
In reality, Rhode Island businesses are burdened by high taxes and costly mandates – and that impacts all of us. When companies settle elsewhere in the Northeast, either as a first choice or after leaving Rhode Island, we miss out on income for Rhode Island families, private investment, future growth – and yes, tax revenue.
The Rhode Island Business Coalition has a clear vision of what is possible for both business owners and the workforce if we can work together to create a stronger business climate that benefits everyone.
As the General Assembly prepares for the final weeks of this legislative session, we have endorsed a series of reasonable, actionable proposals to make that possible.
First, the General Assembly must resist calls to increase income taxes. While Rhode Island’s income tax rates are high compared with other states, we still rank more favorably than our neighbors in Massachusetts.
To enact a so-called “millionaires’ tax” on Rhode Islanders earning over $625,000 per year would eliminate a major competitive advantage over the Greater Boston area.
This additional tax on high earners would discourage business owners and job creators from coming to and/or remaining in Rhode Island, threatening our vibrant Main Streets and putting our Fortune 500 footprint at risk.
Second, Rhode Island’s small businesses rely heavily on digital advertising as a cost-effective form of marketing. While the budget proposal before the General Assembly to tax digital advertising is aimed at massive corporations such as Google LLC and Meta Platforms Inc., the cost will inevitably be passed down to small businesses by way of higher ad prices. This tax will place local businesses at a disadvantage compared with those throughout New England and hinder their opportunities for growth.
Third, the estate tax disproportionately burdens small-business owners, and Rhode Island currently has the second lowest estate tax exemption in the country. A proposal to increase the estate tax exemption to $4 million would improve the state’s competitiveness relative to Massachusetts.
Finally, the state’s annual minimum tax of $400 imposes an unreasonable burden on small businesses, especially for businesses that experience a loss or generate no profit. Eliminating the corporate minimum tax would reduce the complexity of the tax code while providing relief for the small businesses that need it most.
Rhode Island’s small businesses are the lifeblood of our local economy and the backbone of our local communities. They are where we buy our groceries, pick up our morning coffee, celebrate our special occasions and so much more.
This legislative session, it’s time for us to return the favor. The Rhode Island Business Coalition urges the General Assembly to enact these commonsense measures to ease the burdensome costs of doing business and allow small businesses to thrive.
John Simmons is president of the Rhode Island Business Coalition.
