When the General Assembly reconvenes in January it undoubtedly will deal with issues related to capital gains and income tax reform, both aimed at easing the tax burden for wealthier Rhode Islanders.
In previous considerations these issues have had a cool reception from the General Assembly, lobbied actively by labor groups and activists for poorer Rhode Islanders who object to what they contend are tax breaks for the rich. However, in both instances, what has been proposed in the past, and will be proposed in the future are programs that will only make Rhode Island competitive with neighboring states.
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Not only should the General Assembly consider these proposals seriously, but it also should consider finding a more equitable income tax system than our current version that simply piggy backs the federal income tax.
The Rhode Island Public Expenditure Council considers tax reform among its key programs this year. So should the General Assembly.
While legislators have rejected efforts to ease tax burdens in our top brackets, they have failed to heed the calls of business leaders who suggest that by failing to initiate meaningful tax reform, the Assembly is discouraging companies from moving to Rhode Island, and encouraging wealthier Rhode Islanders to leave the state.
For the last few years we have been lulled into a false sense of security by a burgeoning economy. But while economists agree the economy will continue to expand, they also are convinced that the rate of growth is slowing. For Rhode Island that means that if we are to maintain our momentum we must become more competitive.
