Issue Position: Economy and Jobs
Issue Position
Many Rhode Islanders continue to experience fear and hardship due to the economy. As Rhode Island recovers from the recession, Senator Paiva Weed is working to create an economic environment that fosters job creation and ensure that businesses can flourish. As in every year, it was her priority to pass a fair and equitable budget, which maintained competitiveness while making smart investments to help get Rhode Island's economy on track.
In addition to investments in education which lay a solid foundation for economic success, Senator Paiva Weed worked to develop a budget that invests in Rhode Island's economic prosperity.
Most Rhode Islanders will now be exempt from income taxation on social security benefits. As of January 1, 2016, tax filers with federal adjusted gross incomes up to $80,000 if filing singly, $100,000 if filing jointly, will be exempt from taxation of their Social Security benefits.
Senator Paiva Weed also helped enact an incremental increase in the state's minimum wage for the fourth consecutive year. As of January 1, 2016, the minimum wage will increase from $9 to $9.60, which is in line with neighboring states.
Additionally, Senator Paiva Weed supported the first increase in the subminimum base wage paid to tipped workers in 20 years. The rate will increase from $2.89 to $3.39 in 2016, and $3.89 in 2017.
The budget eliminates the sales tax that nonmanufacturing businesses had been charged on natural gas and heating fuels, making it less expensive to do business in Rhode Island.
In 2014, the corporate tax rate was reduced from 9 to 7 percent, dropping the rate from the highest in the region to the lowest in New England as well as New York, New Jersey and Pennsylvania. Combined with a shift in the methodology in which businesses are taxed, this provides a fairer system of taxation that also improves the state's economic competitiveness.
Building on that progress, this year the $500 minimum corporate tax was also reduced to be more competitive with neighboring states.
In addition, a package of economic development tools and incentives to attract companies and spur job creation was enacted, including programs to encourage redevelopment, attract suppliers that serve Rhode Island companies to locate in the state, and encourage proposals on the former I-195 land.
Senator Paiva Weed championed the Rhode to Work action plan last year to improve workforce development and better prepare the workers of today and tomorrow for the demands of a modern economy. Rhode to Work is bringing more resources to workforce development. Job training programs will be more effective, and better coordinated so that Rhode Islanders can easily access them and get on the road to work. Education at the secondary level will be better aligned with the needs of today's businesses.
Senator Paiva Weed also worked with business leaders, particularly the Rhode Island Public Expenditure Council, to develop a package of legislation known as "Moving the Needle." This multi-faceted approach to improving Rhode Island's economic competitiveness: made reforms to the state's disjointed approach to economic development, established programs to boost the skills of the workforce and educational attainment, and addressed infrastructure, taxation, regulatory burdens, and business cost drivers such as health care and energy.
Senator Paiva Weed recognizes the power of the creative sector in contributing to economic growth. She organized the state's first Rhode Island Arts Charrette to bring together stakeholders to work on an action plan for economic development through the arts. She sponsored legislation to provide a new sales tax exemption on all original artwork produced in Rhode Island, as well as the creation of a new "State of the Arts" Task Force. She is a champion of the arts and cultural economy bond on the November ballot.
A forward thinking leader, Sen. Paiva Weed has also championed the growth of the renewable energy sectors and bringing green jobs to Rhode Island. The Defense Economy Commission she established is working to preserve and strengthen the critical defense industry in Rhode Island. The recommendations of legislative Port Commission she created have helped to capitalize on Rhode Island's unique geographic strengths through thriving working waterfronts and to improve port economic development. Among numerous other initiatives, Senate Paiva Weed also created a Senate Fisheries Task Force to explore ways to reduce regulatory barriers to the fishing industry and promote growth of the local seafood industry.
At the State House, Senator Paiva Weed:
*eliminated the income tax on social security benefits for most recipients;
*increased the minimum wage for the fourth consecutive year, to $9.60 as of January 1, which is in line with neighboring states;
*increased in the subminimum base wage paid to tipped workers in 20 years. The rate will increase from $2.89 to $3.39 in 2016, and $3.89 in 2017
*reduced the cost of running a business by eliminating the sales tax that nonmanufacturing companies had paid on natural gas and heating fuels;
*reduced the $500 minimum corporate tax so it is in line with neighboring states
*reduced the corporate tax rate from 9 to 7 percent, the lowest rate in New England as well as New York, New Jersey and Pennsylvania. Combined with a shift in the methodology in which businesses are taxed, this provides a fairer system of taxation that also improves the state's economic competitiveness;
*put in place a package of economic development tools and incentives to attract companies and spur job creation, including programs to encourage redevelopment, attract suppliers that serve Rhode Island companies to locate in the state, and encourage proposals on the former I-195 land;
*helped shepherd into law new protections for pregnant workers and those who have recently given birth to ensure that they are not discriminated against in the workplace;
*increased the earned income tax credit for low- and moderate-income wage earners to put more money in the pockets of these workers;
*supported establishment of the transportation infrastructure fund to invest in Rhode Island's roads and bridges, while eliminating tolls on the Sakonnet River Bridge;
*successfully advocated for the elimination of the sales tax on original Rhode Island artwork, helping to distinguish Rhode Island as a "State of the Arts" and to improve the economy through the creative sectors, and established a task force related to economic development through the arts;
*successfully fought to eliminate the sales tax imposed on pre-packaged tours because of the importance of tourism to Rhode Island's economy;
*developed a package of legislation to give Rhode Islanders access to programs they need to gain the skills in demand in today's economy, while also better aligning education with industry demands and providing additional resources for workforce development;
*worked with business leaders to develop a multi-faceted package of legislation to improve Rhode Island's economic competitiveness;
*championed re-institution of the historic tax credit to provide a boost to the hard-hit construction industry, help improve blighted neighborhoods, and get people working again;
*overhauled the state's approach to economic development, creating a Commerce Secretary, reforming to the Economic Development Corporation to improve transparency and performance, requiring development of a strategic vision for economic development, and establishing a council of economic advisors;
*facilitated introduction of a package of legislation to cut red tape and reduce regulatory hurdles to "Make it Easy to do Business in Rhode Island";
*enacted laws to reform the fire code to make it more flexible and less costly, while still achieving public safety objectives;
*passed a package of regulatory reform bills to cut red tape for small businesses;
*won funding for a web-based system offering uniform building plan review, permit management and inspections, to ease local permitting for small businesses, local governments, and others;
*supported measures to remove barriers to employment and training, such as child care assistance for those in training programs;
*called for reverse transfer of academic credits into CCRI to help with attainment of credentials, outreach from colleges and universities to those with some education but no degree, and dual enrollment of high-school seniors in college credit courses;
*supported increased investment in education at all levels, including pre-kindergarten programs, full-day kindergarten, increased aid to school districts, and increases in state aid to URI, RIC and CCRI;
*advanced the most comprehensive restructuring of the state's income tax in 40 years;
*positioned Rhode Island as a national leader in renewable energy;
*supported comprehensive health care cost containment legislation.
Source