The powerful House Finance Committee will hear two bills on income tax equity today. One sponsored by Rep. Maria Cimini of Providence would raise income taxes on the richest Rhode Islanders by 2 percent and would mean $60 million for the state. The other, sponsored by Rep. Larry Valencia, who represents Exeter, Hopkinton and Richmond, would raises income taxes on the rich by 4 percent.
Both bills are targeted to reverse income tax cuts for those who make more than $200,000 a year, or families that make more than $250,000. Legislative leaders, specifically House Speaker Gordon Fox, and former Governor Don Carcieri sold these tax cuts to the public on the basis that they would help improve Rhode Island’s economy. The state economy got worse with each subsequent tax cut.
Here’s Valencia explaining the difference between the two bills being heard today: