Fair and Adequate Taxes

Fair and Adequete Taxes - A bridge
A state’s ability to provide services is directly linked to the soundness of its tax and revenue structure.

Rhode Islanders make a collective investment in a safe, prosperous state by setting aside some of our income to pay for the public assets that help create jobs and enhance our quality of life, from parks and beaches to roads and bridges, schools and public safety.

A state’s ability to deliver these necessities is directly linked to the soundness of its tax and revenue decisions. Local, state and federal governments need the resources to educate current and future workers, keep transportation humming, provide health care to seniors and people with disabilities, and protect our families, homes and businesses. 

Making sure our businesses, communities, and families have what it takes to thrive requires a balanced approach to meeting our state's needs. That means not only looking at how to be more mindful about our spending, but finding ways to make our tax system more fair and sustainable for the long-term so we can invest in future prosperity. 

We are the only organization in Rhode Island that analyzes tax policies on behalf of low- and modest-income Rhode Islanders.

Research and Analysis: We provide research and analysis through our Tax Facts issue brief series to raise awareness about important tax policies and issues and offer recommendations for improvement. We are especially interested in raising awareness about – and reforming – tax expenditures, which are credits, deductions, exemptions and preferential rates that reduce individual and corporate tax payments.

Public Education and Trainings: Our Revenue Roundtable and Budget Rhode Map conference are intended to educate our colleagues in the legislature and the community about timely tax policy issues.

Legislative Tracking and Advocacy: We monitor legislative and budgetary proposals and their impact on low- and modest-income Rhode Islanders.

Our policy agenda would require the inclusion of sunset provisions and legislative intents for any new tax expenditure, modernize the sales tax base to include some services, and revise the personal income tax. 

Testimony in support of raising the income tax on high income households
May 09, 2012 - The Economic Progress Institute supports revising the personal income tax to add a new bracket, with a higher tax rate, for upper-income households. This would improve the equity and adequacy of the personal income tax, generating new revenue to invest in programs and infrastructure to move our economy forward.

Testimony in support of improving accountability in tax expenditures
May 09, 2012 - House bills H7723 and H7724 would provide basic, fundamental tools for policymakers and taxpayers to be able to evaluate the effectiveness and efficiency of the 227 tax credits, deductions, and exemptions contained in the state’s Tax Expenditures Report, as well as any newly created tax expenditures. 

Investing in the Building Blocks of Economic Growth
April 23, 2012 - Raising the income tax rate paid by higher-income taxpayers is a fair way to help raise the revenue necessary to build a strong economy in Rhode Island.

A More Modern Day Sales Tax
March 07, 2012 - This issue brief explains why it is important to continue to expand Rhode Island’s narrow sales tax base to services.

Raising Revenue from High-Income Households in Rhode Island
March 07, 2012 - In recent years following the Great Recession, states have responded to the collapse in tax revenue by turning to tax increases on high-income households. The substantial revenue collected as a result can help sustain vital public services, including education, public safety, and infrastructure.

Analyses of Tax Credit and Incentive Reports
December 10, 2011 - The state gave away millions of dollars in forgone revenue in Fiscal Year 2011, according to the most recent analysis of the Tax Credit and Incentive report issued by the Division of Taxation. Critical information about jobs, wages, and benefits has not been reported, though, leaving policymakers unable to evaluate whether these tax credits are cost effective tools for economic development.

An Unbalanced Approach to Balancing the State Budget: A Recap of the FY2012 Budget
September 11, 2011 - Rhode Island policymakers were among those in 42 states charged with closing budget gaps for the 2012 Fiscal Year. Read about how lawmakers chose cuts over revenue increases to balance the state budget.

Resuscitating Revenues
June 06, 2011 - Rhode Island needs a balanced approach to addressing the state’s budget shortfall by including proposals that would raise revenue and not just cut spending.  Three of the largest sources of state revenue – personal income, sales, and business taxes – could be modified to improve the sustainability and adequacy of our state’s tax structure.

Governor Chafee's Corporate Tax Reform
April 11, 2011 - Governor Chafee’s proposal to shut down corporate loopholes and eliminate unnecessary tax credit programs for only a handful of companies is a step in the right direction towards leveling the playing field between large and small businesses and improving the state’s long-term fiscal health.

Jobs - Not Taxes - Stimulates Migration (a PERI publication)
April 01, 2011 - Rhode Island shouldn’t worry that higher taxes will drive people away, but how it spends its tax revenue appears to affect the likelihood that people will move here. Employment opportunities, a low incidence of crime, and affordable housing go hand in hand with greater inward migration, according to a study by the Political Economy Research Institute (PERI) of Amherst, Mass.

Rhode Island's Hidden Spending: Tax Expenditures
March 11, 2011 - The state budget should provide a complete picture of the state's finances and spending priorities, but in Rhode Island it only tells part of the story. The budget shows what the state spends on education, health care, public safety and a myriad of other services. But another type of government spending comes in the form of the many tax breaks written into law, called tax expenditures.

A 21st Century Sales Tax: Why Governor Chafee’s plan to modernize the sales tax is necessary
March 11, 2011 - The Governor's proposal to modernize the antiquated sales tax and lower the rate is necessary in order to maintain investments in the public services that improve our quality of life, protect our families and businesses, and help grow our economy.

Prioritizing Approaches to Economic Development in New England: Skills, Infrastructure and Tax Incentives (A PERI Publication)
August 06, 2010 - Investments in our current and future workforce, and the infrastructure that businesses and communities rely on, generate greater returns than tax credits and giveaways.

Tax Topics for 2010
July 11, 2010 - Rhode Islanders understand that we make a collective investment in a safe, prosperous state by setting aside a portion of our income to pay for the kinds of public structures and services that enhance the quality of life for all of us. In order to get Rhode Islanders back on their feet, and to ensure that our businesses and our communities have the resources they need, we must take a balanced approach to solving our budget problems.

Corporate Giveaways Costly to Rhode Island Taxpayers
March 27, 2010 - State leaders need to take a balanced approach to solving our financial problems. That means making sure each dollar we spend is a wise, efficient investment. This issue brief explains how Rhode Island is missing out on much-needed revenue as a result of costly corporate tax breaks.  

Two Steps Forward, Three Steps Back: Governor Carcieri's FY2011 Proposed Tax Policies
February 03, 2010 - While the Governor proposes two revenue proposals that make sense (eliminating two costly tax credit programs) he also proposes two new questionable tax cuts will cost at least $21.5 million a year, while continuing to support the phase out of the flat tax.

The Flat Tax Causing Steep Decline in Revenue
February 03, 2010 - Over the past decade, Rhode Island has given up hundreds of millions of dollars in revenue through a variety of tax breaks of questionable value to the economy.  The "flat tax" is one example of a tax break enacted in recent years that is costing the state tens of millions of dollars in forgone revenue.

Report claiming Rhode Islanders moving out to avoid estate tax is unmoving
January 19, 2010 - The report "Leaving Rhode Island" tries, yet fails, to show that the estate tax is driving wealthy Rhode Islanders out of the state. This issue brief describes the major flaws in this report.

Improving Equity, Adequacy and Efficiency in Rhode Island's Tax Structure
May 03, 2009 - This issue brief explains the importance of a sound tax system, with recommendations on improving the equity, adequacy and efficiency of Rhode Island tax structure.