Income Tax Reform & Business Regulation Reform
This past legislative session, the General Assembly made major changes to the state's income tax structure. Through these changes, Rhode Island's lower and middle class families, as well as its small businesses, will see greater savings in their tax returns, keeping their hard earned money in their pockets where it belongs.
This much needed reform comes when most states across the country are raising their taxes. They are raising fees and cutting back on services. Rhode Island has taken the opposite track.
The new system is simple, easy, and most importantly, fair to every single Rhode Island tax payer. The new system consists of three simple tax brackets: below $55,000, 3.75%; $55,000 to $125,000, 4.75%; over $125,000, 5.99%. The state's standard deduction has also been increased. According to the Department of Revenue, a resident making $45,415 annually would be paying tax rates of 4.1% in Massachusetts and 4.56% in Connecticut. Under the new tax system, a Rhode Islander making the same amount of money annually would only pay a rate of 2.84%.
Cutting spending is only one piece of the solution to our state's financial troubles. Rhode Island's economy must grow and jobs are created when small businesses have the capital to expand. We need to make sure our residents have enough money in their pockets to pay their bills. We need to keep our residents and their businesses within the state. We need to develop our economy, not cut its capital; it's the only way to weather this financial storm.
Here in Rhode Island, by reforming our tax system, by lowering our taxes, we are letting everyone know, if you want to create jobs, if you want your business to grow, if you want you family to grow, come to Rhode Island.