The 2001 legislative session had its ups and downs. The most notable up, in our opinion, was the passage of a proposal to phase out taxes on long-term capital gains.
Though we are disappointed that this phase out will take place so slowly — it
does not completely wipe out the tax for eight years — we are pleased that such
a critical piece of pro-business legislation was adopted.
Beyond Cash Donations: How New Forms of Giving Are Transforming Not-for-Profit Accounting
Evolving Funding Landscape for Not-for-Profits Not-for-profit organizations are being asked to do more with less,…
Learn More
The business community — led by several Chamber of Commerce organizations —
made a terrific case for the measure. Doubtless that will improve the economic
climate here for business leaders — including those executives who make the decisions
regarding whether a company locates in Rhode Island, or perhaps, expands existing
operations.
While opponents of the capital gains phase-out label it a tax break for the rich, we see it as a critical competitive tool, one that should result in more job opportunities for all Rhode Islanders.
But the General Assembly’s session also had its downs, among them the fact that the state’s judiciary remains under-funded.
Newly appointed Rhode Island Chief Justice Frank J. Williams worked hard during his first 100 days to begin modernizing the judiciary — a judiciary hindered by outdated computer systems.
But while Senate leaders — including Senate Majority Leader William V. Irons
and Senate Judiciary Chairman Joseph A. Montalbano — were squarely in Justice
Williams’ corner, their counterparts in the House squashed $1 million in funding
that would have allowed for the replacement of an archaic mainframe data system
for civil cases.
That Rhode Island needs to invest more deeply in its court system should come as no surprise. The roof on the Licht Courthouse is 70 years old, and the aging and decrepit Kent County Courthouse in Warwick needs desperately to be replaced.
Justice Williams was told by the House leadership to try again next year. If that didn’t sit too well with him, it is because he knows that the state’s finances are likely to get worse before they get better. That doesn’t bode well for the judiciary.
Justice Williams — and the entire judiciary — deserve better treatment than
that.
