Rhode Island Proposes Tax Increase for the Wealthy to Support Working Families
Legislation aimed at implementing a modest tax increase on Rhode Island’s wealthiest residents is gaining traction, promoted by state Representative Karen Alzate and state Senator Melissa Murray. The proposed bills H-5473 and S-0329 would introduce a 3 percent surtax on income exceeding $625,000, potentially generating an estimated $190 million for the state’s coffers.
Only about 5,700 taxpayers, representing 1 percent of Rhode Island’s population, would be impacted, leaving incomes below this threshold untouched. Advocates argue that the revenue from this tax could significantly benefit working families, small businesses, and underfunded communities statewide.
The Rhode Island Black Business Association (RIBBA) emphasizes that a more equitable tax system is not merely a financial necessity but a moral imperative. Vennicia Kingston, CEO of Eagle Eye Construction, asserts that the state’s economy is flourishing and that the wealthiest individuals ought to contribute their fair share to maintain public services that underpin economic growth.
Critics, including the Greater Providence Chamber of Commerce, claim that the tax increase could harm economic stability. Proponents counter by stressing that disinvestment in critical services—such as education and healthcare—poses a far greater risk. For instance, recent reports reveal alarming statistics: 68 percent of single adults and 78 percent of single parents in Rhode Island cannot meet their basic needs without public assistance.
Additionally, successful tax reforms in neighboring Massachusetts suggest that fear of wealthy residents fleeing is unfounded. The time has come for Rhode Island to enact equitable policies that ensure everyone can thrive. Advocates are urging the General Assembly to pass this legislation, highlighting the need to foster a prosperous future for all Rhode Islanders. As RIBBA President Lisa Ranglin states, investing in the 99 percent is crucial for building an equitable state.
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