rite – RI Future

January 14, 2013January 14, 2013

An Epic Economic Fail

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The experiment to build our economy with tax breaks for the wealthy continues to be an epic failure. A healthy middle class grows the economy, not giveaways to rich and powerful.

We’re gearing up for another year at the State House to ensure all residents pay their fair share in taxes, not just you and me. Can we count on you to help?

Tell Governor Chafee Rhode Island can no longer afford unsustainable tax breaks for the wealthy.

After years of tax breaks for the wealthiest Rhode Islanders, our state’s unemployment rate has grown to the second highest in the country, working families are paying higher property and car taxes, and deep cuts have decimated funding for education, infrastructure, transportation, and services for Rhode Island’s most vulnerable populations.

Despite significant legislative and public support Governor Chafee has blocked efforts to end the failed tax cuts to the wealthiest Rhode Islanders during his time in the Statehouse. It’s time for change!

That’s why Ocean State Action is teaming up with Rhode Islanders for Tax Equity (RITE is a coalition of labor and community groups fighting to restore tax equity) to call on the wealthiest Rhode Islanders to join the rest of us in rebuilding our economy.

CLICK HERE to Tell Chafee to end tax breaks for the wealthy in his budget this year.

It’s time to get Rhode Island back on the right track, join us today!

May 29, 2012May 30, 2012

Tax Equity Still A Question for Impending Budget Bill

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

One of the key ingredients in this year’s impending proposed budget from the House Finance Committee will be how to pay for existing services that have already been cut to the bone in recent years.

There’s the governor’s proposed 1 or 2 percent meals tax increase, which would raise some $20 to $40 million for education. There’s also Rep. Edith Ajello’s proposed soda tax, which would net another $40 million in revenue.

But the most talked-about revenue-increasing mechanism debated this year has been increasing income taxes on Rhode Island’s richest residents. The Miller-Cimini bill would raise state income tax rate on Rhode Islanders who make more than $250,000 a year from 5.99 percent to 9.99 percent, but the percentage would drop with every one percentage point decrease in the unemployment rate. Rep. Larry Valencia’s proposal would make a similar increases without being tied to unemployment.

House Speaker Gordon Fox, who pushed for tax cuts for the wealthy as majority leader when former Gov. Don Carcieri first proposed the idea, doesn’t want to touch the tax rate this year, but Majority Whip Patrick O’Neil has signed onto the Miller-Cimini bill. Fox has told lawmakers he doesn’t want a floor amendment on a tax increase during the budget debate.

Some speculate that a compromise put forward by local fiscal guru Gary Sasse of raising the rate slightly and earmark those additional funds to economic development.

“I don’t think anyone in this room could really defend the difference between 5.9 and 6.2 percent among certain levels of income,” he told the House Finance Committee on April 24. “My conclusion is there’s some room to make a modest increase to the top rate.”

Whatever happens, Rhode Islanders for Tax Equity, a group made up of community activists and organized labor, knows well this is the time of year the bill is being scrutinized the most. So they’ve flooded the marketplace of ideas with advertisements. In addition to buying space with RI Future, the group also put together a radio ad and this TV spot:

The TV ad was only seen on ABC6, though … that’s because WJAR and WPRI didn’t air the ad. WPRI didn’t, according to a source familiar with production of the spot, because it prominently features their news staff. WJAR, the source said, didn’t because it prominently features WPRI’s news staff. Sales reps for both companies could not be reached for comment.

April 24, 2012April 24, 2012

Tax Equity Bill Before House Finance Commitee

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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.”