TAX, BUDGET, AND REVENUE FAIRNESS AND EQUITY to raise revenue fairly and invest wisely in recovery
- Raise revenue to invest in Rhode Island’s future by creating a new tax bracket for the top 1%
Raise an estimated $144.5 million in annual revenue by adding an 8.99% Personal Income Tax bracket affecting approximately 5,000 tax filers and only their Adjusted Gross Income above $500,000. House 7440 (Alzate) / Senate 2264 (Murray)
- Increase capital gains taxes and a tax on non-owner occupied second homes
Increase taxes on capital gains and institute a tax on non-owner-occupied second homes. House 7865 (Ajello) / Senate (Kallman)
- Increase the state Earned Income Tax Credit (EITC)
Raise the state EITC above the current 15% of the federal credit to allow working families to keep more of their earnings. House 7494 (O’Brien) / Senate 2062 (Felag)
- Ensure that American Rescue Plan Act (ARPA) funds are used as part of a coordinated plan to make immediate & long-term investments to meet critical needs.
Work to ensure that APRA State Fiscal Recovery Funds are spent in a well-planned way to invest in a sustained and equitable recovery, advance the proposals recommended in the Rhode Island Foundation’s Make it Happen Report to invest in housing, behavioral health, workforce development, small businesses, and neighborhood trusts.
(Example) Investment in Housing: House 7123, Article 1 Section 16 (Abney) appropriates $250M for affordable housing over the lifetime of the ARPA funds. EPI and Rhode Island Foundation’s Make it Happen Report recommend significantly more appropriation of the ARPA funds to address the crisis of affordable housing. The Report proposes prioritizing investments to remedy historic inequities and enable historically marginalized populations and those that have suffered disproportionately from COVID-19 to have safe, affordable homes.