As the state legislature moves into the closing weeks of the 2001 session, we hope the pro-business measures that have been subject
to debate gain passage and are forwarded to the governor to sign into law.
But above all we are rooting for the passage of the capital gains phase-out.
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In April of this year, the Senate Finance Committee — by a margin of 13 to 1 — voted to eliminate the state’s capital gains tax over a three-year period. We are still awaiting action from the full Senate, and the House.
The arguments regarding the capital gains phase-out are familiar. Opponents of the proposal point to lost state revenues, suggesting that social programs will suffer.
We side with proponents who are convinced that we currently overtax our wealthiest citizens and that a capital gains reduction is apt to generate further economic development. If such a policy encourages even a few executives to expand a business here – or locate one in Rhode Island rather than somewhere else, then everyone benefits. That’s how jobs get created.
There are other measures at the General Assembly that would benefit the business community. For example, legislation that would establish a “fast-start” program within the Secretary of State’s office is a sound idea. It would allow prospective and existing small business owners to fill out licensing forms out of one office — and in many cases, over the Internet — thus, saving them time and, in turn, money.
Rhode Island has made some progress in recent years to improve the business climate.
But the same claim can be made in states with which we compete for companies,
for jobs. We look to our legislators to keep the momentum going – and in the next
few weeks, they have an opportunity to do so.
