Suspend Internet Sales Taxes to Battle COVID-19

Providence, RI – The RI Center for Freedom & Prosperity, the state’s premiere free-market research and advocacy group, calls on lawmakers to provide sales tax relief to residents concerned about their physical and financial health.

In its policy brief published today, the Center argues that by temporarily suspending its Internet Sales Taxes for as long as COVID-19 is still a problem, state government can provide a financial incentive for people to follow government’s own guidelines and mandates to work, eat, and shop at home.

“We see the federal government considering bold ways to keep businesses running and money in people’s pockets. Our state must do its part. The government-distancing we are recommending can help people remain at home and practice healthy social-distancing,” suggested Mike Stenhouse, the Center’s CEO. “Plus, every sales tax dollar saved might be vitally important to families who are suffering a loss of income during these trying times.”

From a budget perspective, the Center’s policy brief estimates that the temporary $5 million monthly loss of revenues can be easily paid for by cutting other non-essential corporate and political hand-out programs.

In its policy brief, the Center suggests that individuals and the private sector also have a patriotic responsibility to help combat the Coronavirus by purchasing gift certificates and take-out orders, which provide much needed cash-flow to impacted businesses and could save jobs

In 2013, the Center gained statewide notoriety for its Zero.Zero report and advocacy, which recommended the complete elimination of Rhode Island’s state sales tax as the most cost-effective way to create economic growth and to create tens of thousands of new jobs.