LETTERS

Time to cut unnecessary spending

Posted 6/7/22

To the Editor,

 

It’s really disturbing to read how many of our elected officials in Rhode Island are calling for a tax increase while our state coffers are flushed with cash ($1 …

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LETTERS

Time to cut unnecessary spending

Posted

To the Editor,

 


It’s really disturbing to read how many of our elected officials in Rhode Island are calling for a tax increase while our state coffers are flushed with cash ($1 billion dollars plus) received from the Federal government. If you do a little research, the real reason becomes apparent. Over the last 7 years, Rhode Island’s budget has increased 50% or over $4 billion dollars. When the Federal money is spent during the next two years, Rhode Islander’s will have to support a budget that will be more than $13 billion dollars. Some elected officials think the simple solution to this problem is to increase our income tax on Rhode Island’s high-income earners. What is even more alarming is the 50% increase being proposed for high income earners making above $403,500. Why is it that so many of our elected officials believe top wage earners “do not pay their fair share in taxes? If you are an owner of a medium size business in Rhode Island, over 50% of your income is consumed by taxes, medical insurance, and paying both ends of social security, and other taxes and fees.

The biggest falsehood I’ve read recently appeared in the March 23, 2022 Projo, where Senator Melissa Murray, lead sponsor of Senate Bill (S2264) stated, “We hear of the millionaire-flight-myth as a reason to not pass this bill. In reality, it is just that: a myth.” This is not just a myth! I would be happy to introduce Senator Murray to several people that I know, who have left Rhode Island for other more tax friendly states. I would advise Senator Murray to check with the RI Division of Taxation to obtain the true figures of how many Rhode Islanders left this state to reside in more tax friendly states; and yes, the percentage of lower income residents moving out is higher than the high-income earners. The reason is obvious, there are fewer and fewer high-income earners left in Rhode Island, which is why they now make up a much smaller group. The high-income business owner pays more than 40% of their total income in taxes.

Have you ever stopped and asked yourselves the reasons why so many high-income individuals, families, and retirees moved out of Rhode Island to go live in states like Florida, New Hampshire, Wyoming, Tennessee, and Nevada? The primary reason is simple, there is NO STATE INCOME TAX, along with many other factors relating to taxation, a more pro-business climate, and issues regarding our death tax. The top rate for the Rhode Island estate tax is 16% if your estate is worth more than $1,648,611. There is a progressive ladder of tax rates that will determine exactly what you owe. Remember, money goes where it’s treated best!

Now, is certainly not the time to be raising taxes on anyone! It is time however, to cut unnecessary spending in our state’s budget and look for ways that our 39 cities and towns can combine services and eliminate duplication in nearly every area of municipal government. It seems like Mayors Lombardi, Polisena, Grebien and Smithfield town Manager Randy Rossi have figured this out. If we don’t act soon, we will lose many more Rhode Islanders to tax friendly states and that is certainly not a myth!


Steven A. Pitassi

North Providence

letters, editorial

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