2014: The year RI jailed workers in poverty


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Best picture 2014- Santa Brito
Santa Brito in front of the Hilton Providence, March 14.

The most poignant and politically instructive story I covered in 2014 was the shameful treatment of the Providence hotel workers who, having successfully petitioned the Providence City Council for the right to place a $15 minimum wage measure on the ballot, were frustrated in their effort by the General Assembly, under the leadership of the newly elected Speaker of the House, Nicholas Mattiello.

The situation for many hotel workers in Rhode Island is bleak. Some hotels pay wages that are close to a living wage, but many do not, most notably the Hilton Providence and the Providence Renaissance, which are mired in a labor struggle with its staff. Both hotels are managed by The Procaccianti Group (TPG) a multi-billion dollar real estate and investment company headquartered in Cranston, Rhode Island. Properties managed by TPG are notorious for extracting profits from investments by keeping wages low and treating employees as disposable commodities.

Hotel employees organized by Unite Here Local 217, have been demanding fair wages, humane working conditions and a union. The hotels have responded punitively, firing high profile and vocal organizers such as Krystle Martin, Adrienne Jones and Marino Cruz.

Mirjaam Parada
Mirjaam Parada

The hotel workers worked hard last winter and spring to collect the 1,000 signatures needed to compel the City Council to consider putting a $15 minimum wage ordinance for hotel workers on the November ballot, presenting their petition on April 10. The City Council held public hearings on the measure on May 27. Though the ProJo tried to convince the public that there were dozens of speakers on both sides of this issue, in truth there were 22 speakers in support and only five hotel lobbyists speaking against the measure.

But the hotels lobbyists still have power. They have so much power that the Providence Ordinance Committee cancelled a meeting to decide on the measure under pressure from… who knows? To this date no one has explained exactly why City Councillor Seth Yurdin cancelled the meeting. Rumor has it that Mayor Angel Taveras, who was planning a run for governor, was anxious to present himself as a friend to corporate interests, but of course, the mayor has no power to compel the cancellation of city council meetings.

Yilenny Ferreras, at an empty City Hall
Yilenny Ferreras, at an empty City Hall

What is known is that nearly one hundred hotel workers, their families and supporters made huge efforts to be at the City Hall that night, arranging child care or dragging their kids with them, getting to the City Hall by bus, carpool or walking, losing out on valuable paid work or rare time off in the process. Because the meeting was cancelled at the last minute, the hotel workers ended up in an empty City Hall, with no one to hear their case.

It is thought that actions to stall the passage of the measure were used because, despite the pressure on the City Council by corporate interests, early handicapping revealed that the measure would pass if put to a vote. In addition, polling indicated that Providence voters were quite receptive to the idea of raising the minimum wage for struggling workers.

So despite the financial and political power of the forces opposed to the measure, things were going well for hotel workers in Providence.

Enter ALEC

Rep. Ray Gallison

It’s pretty well known that Mayor Taveras had mixed feelings about the hotel worker’s minimum wage bill. It seems he did not want to be known as the kind of mayor who vetoed such popular measures, but he also did not want to end a promising political career by angering monied interests.

Fortunately for his future plans, Taveras avoided having to address the issue thanks to State Representative Ray Gallison, a “Democrat” from District 69, covering Bristol/Portsmouth. Gallison introduced House Bill 8276, which would take away the power of cities and municipalities to set their own minimum wages, effectively blocking the hotel worker’s efforts. According to a House spokesperson, Gallison’s bill was a direct response to the hard work and determination of the hotel workers, who had followed the rules and used the democratic process in an attempt to enact a positive change.

Gallison’s bill was modeled on legislation pioneered by the American Legislative Exchange Council, or ALEC, what Bob Plain called “the right wing bill mill that drafts corporate-friendly legislation for state legislators.” Why would a Democrat introduce a right-wing bill that caters to corporate interests by keeping hard working people in grinding poverty? I don’t know, because Gallison refused to respond to my requests for clarification.

Gallison’s mistake, however, was putting the proposal out in the form of a bill. A bill needs to be debated in committee, which invites public commentary and media scrutiny. A bill, introduced in the House, must also be passed in the Senate. That means more public commentary and media scrutiny. A bill requires each and every legislator to vote on it and essentially declare themselves for corporate interests or struggling workers. A bill would have to be ultimately signed by the Governor. All that democracy engenders uncertainty and becomes a huge problem when a multi-billion dollar corporation is demanding that something be done to protect its bottom line.

Speaker Mattiello

So Gallison, under the direction of the Speaker of the House Nicholas Mattiello, removed his bill from consideration and slipped the measure into the budget. As a budget item, the measure is just one little part of a huge pile of legislation that is passed all at once as an up or down vote. Legislators can say things like, “I don’t support every part of this budget, but as a whole it strikes a compromise I can live with.”

The budget passed the House and the Senate with barely a word spoken against the measure. One notable exception was Representative Maria Cimini, a Democrat. She introduced a measure to amend the budget and undercut Gallison’s ALEC inspired end run. The measure failed. In retaliation for this and other progressive sleights, Speaker Mattiello endorsed Cimini’s opponent, Dan McKiernan, in the Democratic Primary, successfully unseating her.

On June 13, the same night the House passed the budget, the Providence City Council, under the leadership of Michael Solomon, passed a measure putting the $15 minimum wage bill on the November Ballot in what amounted to a symbolic gesture. The efforts of the City Council didn’t matter. The deed was done. On June 16 the Senate passed the budget. All that was required now was Governor Chafee’s signature.

Still, the hotel workers did not give up. Amazingly, hotel workers Santa Brito, Mirjaam Parada and Yilenny Ferreras along with Central Falls City Councilor Shelby Maldonado (now a State Representative) organized a hunger strike, camping outside on the State House Steps for days as the Governor contemplated signing the budget into law.

I visited the hunger strikers every day. I can’t speak highly enough of their determination and grace. On June 19, day three of the hunger strike, Governor Lincoln Chafee signed the budget into law, effectively ending the effort that had started months ago as hundreds of people collected thousands of signatures in order to get a bill placed on the November ballot that would have improve the lives of countless Rhode Islanders.

Since that day, economic prospects in Rhode Island have steadily worsened. Rhode Island has the highest poverty rate in New England. Despite such dour news, the idea that the General Assembly, following Mattiello’s lead, might do anything this coming session but cut assistance programs to the poor is almost laughable. Only 27% of the jobs in Rhode Island pay enough for a family with two children to survive on. The rest of Rhode Islanders are the working poor, disposable commodities for the rich to use, abuse and toss aside when broken.

When Rep Ray Gallison first introduced his ALEC inspired bill to cut off the efforts of the hotel workers to improve their lives, Santa Brito, housekeeper at the Providence Renaissance and hunger striker said, “House leadership is moving to jail us in poverty.

Who would have thought that Rhode Islanders would stand by and actually let that happen?

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Voices and video from Saturday’s forum on racism


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Saturday’s forum, Racism, State Oppression, and the Black Community Ferguson Beyond, held at the Southside Cultural Center on Broad Street here in Providence, was packed, with the crowd at its peak reaching nearly 200 people.

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(c)2014 Rachel Simon

City Councillor-elect Mary Kay Harris emceed the event, keeping the panelists and commenters from the audience mostly on point. The panelists were Globe (Jonathan Lewis) of the Positive Peace Warrior Network, Erroll Lomba of roots.media, Monay McNeil, a student at Rhode Island College, Prof. Matt Guteri of Brown University and Steve Roberts, a recent graduate of Rhode Island college and one of the PVD7, arrested November 25th for allegedly trespassing on the highway during a Ferguson protest here in Providence.

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Globe, Positive Peace Warrior Network (c)2014 Rachel Simon

The size of the crowd and the resurgent interest in civil and human rights is a welcome counter to what many perceive to be a rising tide of government overreach and police militarization. The links between social and economic inequality are becoming ever more clear, as both panelists and commenters pointed out. We are still in the early days of what seems to be a new civil rights movement poised to oppose the drug war, the prison industrial complex and the “New Jim Crow,” and we are starting to see signs of what this movement is and what it hopes to accomplish.

The event was hosted by the Mount Hope Neighborhood Association, Inc., the Providence Youth Student Movement (PrYSM), the Providence Africana Reading Collective (PARC) and OneVoice RI, in collaboration with Shanna Weinberg of the Center for the Study of Slavery and Justice at Brown University.

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Monay McNeil (c)2014 Rachel Simon

As usual I have a ton of video from the event, including the entire 2 hours and 20 minutes as one video (scroll down to the bottom of the page). Photographer Rachel Simon supplied the still pictures for this post.

Errol Lomba, of roots.media, was interested in the questions brought up by nationwide reactions to the incidents in Ferguson and New York, but he also wonders about the answers. “What does a solution look like?” he asks, “How do we win?”

Monay McNeil reflected on the media reports about the Mike Brown homicide. When the shooting was fist reported, news media were taking their cues from social media, and we learned that Mike Brown’s death as a tragic loss: he was young, he was a college student. Soon, the narrative changed, as the media moved to defend the police. Now, Mike Brown is a thief and a thug.

Globe is a student of Martin Luther King and nonviolence. He mused on the divide between the youth driving the recent protests and the older activists who seem to be out of touch with their methods and style. The youth are “not saying they don’t want to learn from you,” says Globe, “they’re asking, ‘What are you going to do for us?'”

Nobody talked longer than Steve Roberts, who is full of ideas on hip hop culture, the history of the civil rights movement and the philosophy that seems to be driving the current unrest. When examining history, says Roberts, “you get this sanitized, dry, boring version of civil rights… People tend to discredit the more radical elements of protest efforts.”

This one is well worth a watch for people interested in understanding what’s really going on.

Professor Matt Guteri of Brown University was quick to give up his academic privilege when joining the conversation. “Just call me Matt,” he said, but he made some important points. “Any crime is used as a justification for death,” said Guteri, explaining how the police and the media blame the victims for violence done to them. he also made some important points about the role of social media in recent events. In the build up to the Iraq War, says Guteri, the media ignored the peace protests, but because of social media, the media is having a more difficult time ignoring the protests that have come in the wake of Ferguson.

After the public commentary, the panelists were given some time to wrap up their thoughts.

“We live in a society where in Detroit, they shut down the water, and old people are walking around with buckets. And it’s not because there’s a drought, it’s because they want more money, because the rich want more money…”

This speaker talked about working within the system to effect change, and he surprised the audience with a big reveal…

“In order for this movement to successful it has to be lead by the most oppressed, and right now I believe it’s the black transgendered youth…”

“Until we have a conversation about racism in this country and the white supremacy that these officers are fighting/uplifting, we’ll never truly find a solution…”

“We have to see the way in which we get punished for speaking out and fighting back. So a modern day example would be how he (Steve Roberts) got punished and tried to be ‘put in his place’ and essentially a call to all the white supremacists to go find him was publishing his address in the Providence Journal. That seems very much like the fugitive slave act…”

Servio Gomez is one of the PVD7. “On the issue of the firefighter getting reprimanded, we need to understand that as a worker issue. We need to understand that a worker was showing solidarity, and they got reprimanded as a worker, using state mechanisms, because the state was their employer, and that’s just how it goes. Workers need to be able to determine how they express themselves on the job and how to best develop themselves…”

Maria Cimini is finishing up her second term as State Representative, after being essentially pushed out by a Democratic leadership that didn’t like her Democratic Party positions. She will be returning to the fight for social justice as an activist. At the forum, she defended the idea of working within the system, at least in terms of being active in state and local politics, in order to achieve social justice goals.

“I’m 21 years old and it took me 21 years to understand my own blackness and understand that I was black as an Afro-Latina…”

Carolyn Thomas-Davis of OneVoice RI wonders if everyone “really understands the reason we are here, today? Do you understand the issues over police brutality? And do you understand how we got to where we are?”

Shannah Kurland is an activist lawyer working as the defense for five of the PVD7. “I want to ask every one of us to show some love for the PVD7, those brave young people who put their lives on the line… they did that for all of us. In terms of older people looking to younger people for knowledge and inspiration, I know they’ve given me some and I know they’ve given a lot of us- by putting their bodies on the line, by putting their safety on the line…”

“Currently have the NBA and the NFL as one of the most lucrative businesses for black and brown people, yet it’s also being used as a [way to control us] by white owners…”

Randall Rose warned the audience not to get too comfortable with social media. It can become a tool with which to identify the troublemakers and oppress us.

Here’s the full video:



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The election over, it’s time for a $15 minimum wage


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Mattiello
Speaker Mattiello

On Tuesday, voters in Alaska, Arkansas, Nebraska and South Dakota passed measures to raise the minimum wage in their states. These states are Republican strongholds, yet minimum wage increases passed overwhelmingly: 68.6% vs 31.3% in Alaska, 65% to 35% in Arkansas, 59.2% to 40.8% in Nebraska and 54.7% to 45.3% in South Dakota. These are conservative, hard-core red states, but the measures passed because no matter where on the political spectrum Americans stand, most of us believe in the fairness and justice of earning a living wage from a forty hour a week job.

Meanwhile, in California, ultra-liberal San Francisco leap-frogged all the competition by passing a $15 minimum wage ordinance in their city, and Oakland went to $12.25.

So what’s going on in Rhode Island?

Last year, the state raised the minimum wage to $9, from $8. This happened as hotel workers were fighting in Providence for a industry-specific $15 minimum wage and in short order a line was inserted into the state’s budget, without public debate or vetting, that prevented cities and towns from setting their own minimum wage floors.

Hunger Strike Rally 007The hardworking hotel workers had successfully petitioned the city council into placing a $15 minimum wage measure onto the ballot. Citizens of Providence would have voted on that measure Tuesday, if not for the actions of the General Assembly. There is little doubt that the measure would have passed here in Providence. I mean, seriously, are voters in Alaska, Arkansas, Nebraska and South Dakota more compassionate than voters in Providence?

Speaker of the House Nicholas Mattiello and Budget Committee Chairman Representative Raymond Gallison did everything in their power to circumvent the will of the people and democracy itself in a sickening display of cavalier corporate bootlicking. Indeed, so great is Mattiello’s obsequious desire to serve corporate interests that he specifically targeted Maria Cimini, the only representative to raise any objections to the measure, by backing her opponent in the primary. Cimini lost her bid for re-election.

Elorza 001
Jorge Elorza

Over the course of the election here in Providence, many candidates have voiced their displeasure at Mattiello and Gallison’s power grab. Mayor Elect Jorge Elorza, said that he would actively work to have the law overturned, so that Providence and other cities might set their own minimum wage floors. In the October 22 mayoral forum Elorza even hinted that he supports a $15 minimum wage. I look forward to seeing Elorza at the State House in support of whatever bill is introduced to overturn the measure. Gina Raimondo is also on record as saying that the minimum wage needs to be increased to $10.10 (though she has never committed to $15.)

The Economic Progress Institute says an adult needs at least “$11.93 an hour to afford their most basic living expenses.” That’s $3 over our minimum wage and probably still another $3 shy of a living wage.

Raising the minimum wage to a living wage will prevent more Rhode Islanders from slipping into poverty, losing their homes and postponing their educations. It will give parents, now working two and three jobs to keep an apartment, more time to be parents and keep their kids off the streets and out of trouble. It will increase the purchasing power of Rhode Islanders, driving money to local businesses. It will reduce people’s dependence on financial debt traps like payday loans, and allow people to start bank accounts to earn credit and plan their retirement or their kids college.

Raising the minimum wage to a living wage will help people live lives of meaning without the stress of grinding poverty and the hopelessness such a life inculcates. Even the more conservative states are acting in lieu of a federal increase. The more progressive cities across the country are acting in lieu of a meaningful minimum wage in any state.

For this to happen in Rhode Island, we need to pressure the General Assembly to reverse last year’s law that prevents cities and towns from helping hourly-earning residents out of poverty.

Why is Nick Mattiello scared of Maria Cimini?


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Maria Cimini

Maria CiminiWhen it comes to championing progressive causes, no one in the Rhode Island General Assembly is any braver than Providence Rep. Maria Cimini.

For years, she has lead the charge – against the richest special interest group in Rhode Island – for a less regressive income tax structure. And this year she valiantly defended on the House floor during the late-night budget bill debate, the Providence hotel house keepers – some of whom live in her district – as House leadership effectively nixed their effort to implement a city-wide hotel-industry minimum wage. She’s always standing up for the poor and standing up to the powerful.

Such progressive bravery has won Cimini not just the respect of this blog, but also the ire of House Speaker Nick Mattiello. He tells the Providence Journal he’s backing Cimini’s primary opponent because she didn’t back him for speaker, didn’t apologize for that and because she doesn’t agree with him on policy.

According to the ProJo Mattiello said, “Representative Cimini didn’t support me for speaker and never came to me to indicate she would support me in the future. She didn’t ask for my support in her race and Dan McKiernan did come and ask. Like me, he is a moderate, and his political viewpoints are more in line with the voters of his district and the state of Rhode Island.”

Mattiello is wrong to use his considerable political influence to settle Smith Hill vendettas. And the people of District 7 deserve a legislator elected based on his or her merits, not their loyalty to House leadership.

On the other hand, if he thinks his trickle-down economic policies represent the Elmhurst area of Providence better than Cimini has done, well then it’s his right to oppose her reelection.

But Maria Cimini deserves strong progressive support for her steadfast allegiance to working class Rhode Island. She’s fought hard against high stakes testing and she fact-checked Ken Block (when ). She’s been a champion for tax equity and a higher minimum wage. And she may need our help depending on how adamantly Speaker Mattiello works against her.

Smiley, Goldin and Cimini submit “Guns and Ammo” tax bill


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Goldin SmileyBrett Smiley, running for the position of Mayor of Providence in this September’s Democratic primary isn’t letting the fact that he hasn’t been elected stop him from coming forward with some bold new initiatives.

Tuesday morning found Smiley in the State House rotunda with State Senator Gayle Goldin proposing a bill that upon passage would impose a 10% tax on all gun and ammunition sales in the state. Representative Maria Cimini, who was unable to attend the press conference, will introduce the bill in the house.

The bill promises to allocate all funds raised from this tax (estimated by Smiley to be about $2 million) to every town and city police department based proportionally on the prevalence of crime in each area, and then each police department will further allocate the money to non-profits with a demonstrated commitment to reducing crime and violence.

Said Smiley, “Just like we expect the tobacco industry and those who support it to pay for public health initiatives, the firearms industry and those who prop it up should be paying to keep our streets safe.”

Senator Goldin pointed out that, “This is a different approach,” adding, “I will certainly be working hard to get this passed.”

Currently, no state has imposed a special tax on guns or ammunition, and only Cook County, Illinois has imposed a special tax on guns. In that sense this legislation marks a new kind of thinking when dealing with gun violence on a state level.

“The damage done by guns legally and illegal [obtained] imposes a cost on society and this [bill] is one way to pay that cost,” said Smiley, “Gun violence has been a plague on our community for many years, and solutions to address this issue deserve long term commitments from all of us who seek to serve the community.”

Maria Cimini on tax equity, her education policy agenda and a plastic bag ban for RI


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Maria Cimini

cimini_mariaProgressive Providence Rep. Maria Cimini is probably best known for leading the charge for tax equity in the General Assembly. This year, she said, education will also be high on her priority list. In fact, she said she may earmark new revenue raised by her tax equity legislation to better fund education.

But when asked what she would focus on if she could only have one issue this session, she said education.

“I would want to focus on really widespread and broad education policy that would involve pre-K, solid care for children, looking at the GED changes that I think are going to be really difficult for low income individuals,” she said. “It’s beyond test taking and beyond even workforce training. It’s about preaparing people to work creatively and work in teams  and respond to careers that we can’t even imaine exist at this moment and I’m concerned that the trajectory of public education is more focused on the jobs that exist right now and very finite skills and a world that changes.”

She also said she’ll be reintroducing her plastic bag ban bill. Please listen to our entire conversation here:

 

RI Progress Report: Arbor Day, Netroots Nation, Medical Marijuana, Muslim Brotherhood, Maria Cimini, ALEC


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Happy Arbor Day, Rhode Island! Hug a tree today. Or, even better, plant one.

Don’t expect much protest at Netroots Nation here in Providence in June, says Ted Nesi, but do expect a visitor from the White House. Meanwhile … Netroots Sweeden starts today.

In the federal governments’ latest attempt to trample state’s rights and squash the will of Rhode Island voters, US Attorney Peter Neronha told Gov. Chafee that landlords who rent to medical marijuana dispensaries could risk having their property taken away.

I’m not saying foreign policy expertise is the most important qualification for a senate candidate, but Rhode Island deserves one that knows the difference between Egypt and the Muslim Brotherhood.

Rep. Maria Cimini, the House sponsor of a bill to return some tax equity to Rhode Island, gets a nice nod from Dan McGowan. She sure does deserve it.

Here’s hoping this trend continues.

It’s not just here in Rhode Island that ALEC is being exposed. It’s actually a nation-wide trend.

VIDEO: Three Perspectives on Income Tax Equity Bill


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At a hearing last night, many spoke in favor of Rep. Maria Cimini’s legislation that would raise income taxes on Rhode Island’s richest residents as a way to raise revenue and encourage job creators to lower the state’s unemployment rate, and I chose three to feature because they represent a wide variety of reasons why it makes sense for Rhode Island to take proactive steps to better fund government.

The bill would raise the income tax on those who earn more than $250,000 from 5.99 to 9.99 and that rate would decrease by one percentage point for each percentage point that the state’s unemployment rate drops. It would raise some $132 million in additional revenue.

Tax Equity Bill Before House Finance Commitee


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Sen. Josh Miller and Rep. Maria Cimini, sponsors of a bill that would raise taxes on the richest 2 percent of Rhode Islanders.

The tax equity legislation will get a public debate at the State House today as Rep. Maria Cimini’s bill that would raise income taxes on Rhode Island’s richest until the unemployment rate drops will be heard by the House Finance Committee tonight after the regular session.

“I’m looking forward to making a the case for a fair ways to raise revenue,” Cimini said. “We are at a crossroads. Either we are a state that fulfills its public needs or we are not.”

The bill would raise the income tax rate on those who earn more than $250,000 a year from 5.9 to 9.9 percent and for each percentage point the state unemployment rate fell that tax bracket would reduce by one percent until it reaches 5.9 again. The tax rate for those who earned more than $100,000 was 9.9 until it began gradually being reduced over the past several years. The bill would add $131 million in new revenue.

Also testifying tomorrow will be economist Chuck Collins, a “senior scholar” with the Institute for Policy Studies, as well as several others.

Rhode Islanders for Tax Equity, a coalition of unions and other grassroots activists formed to support the bill, “plan to ask legislators whose side they are on–the side of hard-working, middle class Rhode Islanders or the side of political insiders and wealthy Rhode Islanders? Citing a stubbornly high unemployment rate that coincides with the lowering of tax rates on the rich,” according to a statement.

Earlier this session, the group released this chart that shows that as the tax rate for the richest Rhode Islanders has dropped the unemployment rat has gone up:

And this video showing how decreased top income tax rates have contributed to Rhode Island’s economic slowdown:

Cimini said she doesn’t think the bill will pass as is, but remains “cautiously optimistic” that parts of it will make this year’s budget proposal. She plans to meet with Speaker Gordon Fox about the bill in the near future, she said.

Occupy Providence plans to rally outside the State House to help bring attention to the bill. According to a press release, “The march will show how Rhode Islanders are fed up with politicians damaging our economy by giving tax breaks to the rich.”

Budgeting for Disaster: Taxing History


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Is it really too soon to modify our tax code?

In the discussions of taxes at the State House, one line you hear a lot this year is that our state’s new income tax code is new and we should give it time to see how it works out.  That’s what House Speaker Gordon Fox has said, and I’m hearing that it’s the line of the day on Smith Hill, available from any of the House or Senate leadership.

This is, of course, a silly point to make.  The tax changes made last year basically just baked in the low taxes on rich people offered by the “flat tax” alternative.  It used to be that a rich person could choose whether to pay tax under the tax code everyone else uses or using the flat tax limit, and now the flat tax limit is part of the code everyone else uses.  This part may be new, but the overall “strategy” at issue — lower taxes on rich people, expect economy to get better — has been the order of the day in Rhode Island for a long time.  To illustrate what’s really been going on in Rhode Island tax policy, I put together the following graph.

The blue line is the effective RI income tax rate on a fairly typical taxpayer in the top 1% over the last 16 years, with the various cuts that taxpayer has received indicated.  These cuts don’t count tax credits like the film production or historic structures credits, which are typically only available to high-income individuals and which make the effective rate even lower.  The black line indicates the effective tax rate on the median taxpayer (the 50th percentile).  You can see a slight decline in the 1997-2002 period, but the other changes didn’t do much of anything for them.

The unemployment rate, of course, has nothing to do with the tax rate, except as a rhetorical club used to beat people about the head and neck.  There is no evidence that it has any causal relationship with the state tax rate (in either direction), but the relationship between taxes and “job creators” is commonly invoked to persuade lawmakers to support lower taxes.   I’ve included the unemployment rate on the graph as a service, so you can see how little is has to do with the movement of taxes.

One more thing you should know about this graph.  There is some evidence available that the 2012 tax changes raised taxes substantially on the middle percentiles of taxpayers.  Unfortunately, it’s premature to say more than that, since the data won’t be available until later this year, at the earliest.

The House Finance Committee is holding a hearing on several bills designed to raise taxes on the top 1% Tuesday afternoon at 4:30pm in State House room 35.  Rep. Maria Cimini (D-Providence) is the prime sponsor (with 36 co-sponsors) of a bill to raise the taxes on people earning more than $250,000 per year by four percentage points, with that top rate coming down as the unemployment rate also goes down.  Think of it as a “pay for performance” clause for rich people.  There are also bills by Rep. Larry Valencia (D-Charlestown, Exeter, Richmond) and Scott Guthrie (D-Coventry) that will have more or less the same effect, though the income limits and tax changes are slightly different (neither of those bills have the unemployment clause).

Video: Why Flat Tax Hasn’t Worked For Rhode Island


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Rhode Islanders for Tax Equity release a powerful new video today that explains why un-flattening the income tax code and increasing the rate that the richest residents pay would help to solve many of the issues that are currently plaguing the state.

The group, made up of many unions and economic activist groups from around the state, is pushing for passage of the Cimini-Mill bill which would increase income taxes for those who make more than $250,000 a year.

You’ll notice the video says the tax rate was lowered in 2006. And if you’re a regular reader of RI Future, you’ll remember that House speaker Gordon Fox told me recently he wouldn’t consider this bill this session because it is the first year that the new tax rate was in place. In actuality, the tax rate has been getting flatter since 2007 and this is the first year it is completely flat at the top.

Here’s a chart showing unemployment going up as the top tax rate goes down:

RITE has an interesting slogan on its website: “Rebuild RI the RITE Way.” Not too far off from the Projo’s new series of the state of the state’s economy, “Reinvent RI.” Interestingly, both efforts are designed to help Rhode Island get out of the economic mess it is in.

George Nee, president of the AFLO-CIO and a member of the group, added in a press release that such a move would be a boon for Rhode Island’s struggling economy:

“Only the top 2% of income earners in Rhode Island will be affected by this bill. Our hope is that the other 98% will benefit through this increased revenue, which could be used to lower property taxes, help small business owners create jobs, stop college tuition increases, restore funding to programs for the neediest Rhode Islanders, and fix our roads and bridges. This is a bottom up campaign. We are hoping this video helps educate and motivate lower and middle-income Rhode Islanders and helps create a groundswell of support for this bill.”

 

Rhode Islanders Rally for Tax Equity Bill


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Sen. Josh Miller and Rep. Maria Cimini, sponsors of a bill that would raise taxes on the richest 2 percent of Rhode Islanders.

Rhode Islanders for Tax Equity held court in the rotunda of the State House this afternoon, explaining why it’s good for the state’s economy – as well as a moral imperative in tough economic times – to raise taxes on the rich.

The bill would raise the income tax rate for those making more than $250,000 – the richest 2 percent of the state – from 5.99 percent to 9.99 percent, with the caveat that for every one percentage point the unemployment rate drops so too would the tax increase, and the group estimates it could bring in $118 million in new revenue for the ailing state coffers.

Rhode Islanders for Tax Equity Meets Today


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There’s a broad-based coalition building around a bill that would raise income taxes on the wealthiest Rhode Islanders. The coalition includes legislators, labor leaders, small business owners, parents, college students and a at least one mayor.

Pawtucket Mayor Don Grebian will join the other members of this coalition, called Rhode Islanders for Tax Equity, today at 3:30 at the State House for a press conference to answer questions about the new tax proposal that would raise income taxes on those who make more than $250,000 a year.

“RITE is advocating for a tax policy that will take the burden off of the middle class and ensure the most privileged Rhode Islanders are paying their fair share,” said the group in a press release.

The group estimates the bill could yield $118 million in revenue for the state budget.

Rep. Maria Cimini, a Providence Democrat who sponsored the bill in the House, previously told RI Future: “We’ve really called on low and middle income Rhode Islanders to feel the pain of this recession. I don’t feel that we’ve called on upper income Rhode Islanders to feel that pain or share that sacrifice.”

Cimini will be at the event today, as will the bill’s sponsor in the Senate, Josh Miller, D- Cranston.

Cimini said the bill is different from other tax the rich proposals because the increase would drop commiserate with the state’s unemployment rate. In that way, it will serve as an incentive for the job creator class to actually create jobs.