GoLocalProv News Team
The newest congressional tax reform package would give Rhode Island’s top one percent nearly two-thirds of total cuts, according to a new analysis released by the Institute on Taxation and Economic Policy.
The “tax reform framework” released by the Trump administration and Congressional Republican leaders, “would fail to deliver on its promise of largely helping middle-class taxpayers,” said the Institute.
In Rhode Island, the top one percent of the state’s residents would receive an average tax cut of $55,510, accounting for nearly two-thirds of the overall tax change, compared with an average tax cut of just $240 for the bottom 60 percent of taxpayers in the state.
“Tax cuts that largely benefit the wealthy often come with a heavy dose of cuts to vital programs and services. Reducing investments in health care, education, food assistance, disability insurance and other programs is too steep a price to pay to give the wealthy a tax cut,” said Rachel Flum, Executive Director of the Economic Progress Institute.
The report adds that nearly 1 in 5 Rhode Islanders would see their taxes increase by over $1,800.
The 50-state analysis looks at the overall effect of the Trump tax plan on federal revenue as well as its impact on taxpayers in each of the states.
For a more detailed breakdown of how the tax plan would affect Rhode Island, go HERE.