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.
Such proposals are being considered in Rhode Island, where a significant number of lawmakers have co-sponsored legislation to increase taxes on higher-income households. The potential revenue to be raised from the different bills ranges from $18 million to $124 million dollars.
The Economic Progress Institute, in conjunction with economist Jeffrey Thompson of the Political Economy Research Institute, has released the report Raising Revenue from High-Income Households in Rhode Island, which looks at decades of evidence and clearly finds that such income taxes effectively raise substantial revenue, without risk of harm to a state’s economy.