Flat tax
To some this is a bill that rewards the rich. To others it’s a tax equalization proposal. And still, to others it’s an economic development plan. James Skeffington, a lawyer at Edwards & Angell, is leading the charge to try and persuade the state legislature to eliminate the 26.5 percent piggy back income tax for Rhode Islanders with incomes over $175,000 and replace it with a flat tax of 5.75 percent of the federal adjusted gross income. He also wants to eliminate the capital gains tax for assets held for more than five years, and to establish a blue ribbon committee to review the state’s overall tax structure.
According to a report that Skeffington is distributing, the proposal would merely put Rhode Island in line with neighboring Massachusetts which already has a flat tax of 5.95 percent (with a proposal on the table to reduce it to 5 percent), and reduces and eventually eliminates the tax on capital gains depending upon how long an individual holds an asset.
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No matter how many benefit, the proposal makes sense. We have long realized that the decision to keep a company at a location, or to move it elsewhere, is often a decision made by a very few top executives. Their decisions are based not only on how favorable conditions may be for a company, but on how favorable conditions may be for themselves, their families and their top executives. Quality of life, including tax structure, is surely a very important element.
We are well aware of situations where individuals, expecting the sale of a major holding in Rhode Island, have moved out of state to avoid paying what they believed were inflated Rhode Island taxes. Skeffington said that even now he is dealing with a 50-employee company that is seriously considering a move out of state because of the income tax structure.
We don’t believe that this tax reform alone will stimulate a rush of businesses to Rhode Island, but we do believe it will remove a substantial objection to remaining or relocating to Rhode Island.
Warwick station
The new terminal at T.F. Green Airport continues to break records for passenger travel. If they kept records on accessibility and convenience – T.F. Green would be breaking those as well.
Now comes a legitimate plan – backed by millions of federal dollars – to increase that accessibility and convenience by building a train station a quarter of a mile from the airport. Warwick Station, as it is being called, would be by far the closest train station to a major airport anywhere in the United States.
We wholeheartedly support the proposed Warwick Station and applaud the fact that the Warwick City Council, controlled by Democrats, and Republican Mayor Lincoln Chafee have landed on the same page in lobbying for the proposal. By all accounts, they have painstakingly explained the project to neighbors and business owners and they have taken into account suggestions from such groups in developing a Master Plan for the project.
The Warwick Station project is quickly becoming much more than some futuristic vision. It is being fueled by $25 million in federal dollars. Beyond that federal windfall, the state will infuse a $5 million matching grant. Private investors also are being sought to lend support.
Warwick Station is expected to include a skywalk, retail shops, office complexes, a conference center, hotels and parking garages. In the newly created district, according to preliminary plans, an emphasis will be placed on maintaining open spaces for walking, artwork and fountains in a park-like environment. The project is expected to include a 1,500-foot “people mover.”
Al Gemma, a political independent and former Warwick City Council member says Warwick Station will make the city “shine like crazy.” Gemma couldn’t be more right. And Warwick Station will be good, not only for Warwick, but for all of Rhode Island.
