One Step Forward, Two Steps Back

A new state budget has arrived for the Ocean State. Are lawmakers thinking of what’s really best for your family? While portions of the budget proposal from the Rhode Island House represent improvements over Governor Gina Raimondo’s initial suggestions, Rhode Island’s political leaders continue to show no interest in changing the state’s course. Every positive change is more than offset by greater and more-substantial negatives. A legislature that seeks to pile another 3.8% increase in spending onto the backs of taxpayers is one that fundamentally does not understand Rhode Island’s problems.

• While it is a positive that the state will continue phasing out the car tax, simply moving the burden dollar-for-dollar to other taxes will have no economic benefit and may actually represent a net loss for the local economy.
• While resisting another increase of the regressive cigarette tax will keep more money in the pockets of struggling families, nickel-and-diming users of “software as a service” with a new sales tax will weigh down innovation and productivity.
• While a focus on bringing Rhode Island’s public school buildings up to safe and modern standards is clearly an important objective, the state is poised to do so in a way that creates a new state mandate on school districts and will likely increase local taxes, rather than force a much-needed reconsideration of priorities in school budgets.

In Liberty,

Justin Katz

Research Director