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.

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.

Read the Rhode Island-specific report
Read the full report from the Political Economy Research Institute