Sign up for the Today newsletter
Get everything you need to know to start your day, delivered right to your inbox every morning.
The proposed new income levy would build on the state’s “Taylor Swift tax,” adding to a growing web of state-level measures impacting affluent households.
Rhode Island is moving closer to a new tax on high earners, adding to a growing patchwork of state measures aimed at the wealthy that advisors will have to keep tabs on for affluent clients with multistate ties.
Governor Dan McKee, who previously resisted calls for higher income taxes, is now signaling openness to a surtax on top earners as federal cuts squeeze the state’s finances.
As reported by Bloomberg, Lawmakers are revisiting a proposal for a 3% surtax on income above $640,000, roughly the top 1% of earners in the state, to help plug a projected deficit of at least $101 million for the fiscal year starting in July. McKee’s office has also floated an income threshold of $1 million for any wealth tax.
“We are in a spot where we’re going to have to address some of those headwinds that are coming our way from DC,” McKee said, pointing to reductions in Medicaid, food assistance and other programs by the federal government under President Donald Trump.
The debate in Providence mirrors a broader shift among Democratic policymakers who are turning to high-income households and owners of luxury property to shore up budgets and address what they see as a K-shaped economy. Neighboring Massachusetts has become a key reference point with its 4% surtax on income above $1 million, approved in 2022, which has reportedly generated billions in additional revenue.
On the West Coast, a billionaire tax proposal in California that would place a one-time 5% levy on all the worldwide assets of billionaires who resided in the state as of January 1 has sparked swift reactions from critics warning of a resultant wealth exodus.
For advisors, Rhode Island is already a test case in using real estate taxes to target the wealthy. A new surcharge on second homes valued at more than $1 million, dubbed the “Taylor Swift tax,” takes effect this summer. For non-primary residences, or properties not occupied more than half the year, the state will charge $2.50 for every $500 in assessed value above the first $1 million, on top of existing property taxes.
Read more: “Fearless” singer Taylor Swift joins billionaires’ club on prestigious women’s rich list
Luxury brokers have warned the levy hits the very people supporting much of the local economy in seasonal communities like Newport and Watch Hill. “These are people who just come here for the summer, spend their money and pay their fair share of taxes,” Donna Krueger-Simmons, a sales agent in Watch Hill, told CNBC when that property tax was unveiled. “They’re getting penalized just because they also live somewhere else.”
Critics say some second-home owners are weighing sales and prospective buyers are pausing purchases or looking to coastal alternatives in nearby Connecticut. That kind of cross-border arbitrage will be familiar territory for advisors whose clients can choose among multiple high-end destinations.
Advocates counter that higher taxes on second homes and top incomes are necessary to keep tourist towns livable for year-round workers who keep service economies running. One commentary by the Institute on Taxation and Economic Policy argues that wealthy vacation-home owners and high earners can absorb surtaxes that fund housing, infrastructure and local services, and that states should design broad, progressive real estate and income tax systems rather than leaning on middle-income residents.
The proposed income surtax failed to make it into last year’s budget but is expected to be a central flashpoint in the current session. Rhode Island Senate President Valarie Lawson has supported earlier versions, while House Speaker Joe Shekarchi has said he is open to the idea but uncertain where the income line should be drawn.
“You can say tax the rich, but what is the rich?” he said.
Local News
A Rhode Island husband and wife in their 50s were identified as the two people killed in a Swansea car crash Friday night.
Carlolyn Carcasi, 54, and James Carcasi, 53, of Bristol, Rhode Island, were killed in the Feb. 27 crash, the office of Bristol County District Attorney Thomas Quinn said in a press release Monday.
The crash occurred at the intersection of Route 136 and Route 6 in Swansea, Quinn’s office said.
Police in Cranston, Rhode Island identified the driver who allegedly hit the couple as Demitri Sousa, 28. Sousa allegedly shot and killed a man in Rhode Island nearly four hours before the crash, Cranston police said.
At around 12:18 a.m. Friday, Swansea police spotted Sousa’s Infiniti barreling down Route 6, Swansea officials said previously.
The couple was driving southbound on Route 136 when the Sousa crashed into the side of a Subaru Ascent. Both cars had “catastrophic damage,” and the Subaru was engulfed in flames, Swansea fire and police officials said.
Both occupants of the Subaru were declared dead at the scene, Swansea officials said.
Sousa was transported to a local hospital, where he is being treated for serious injuries. He is expected to live and will be held in Cranston police custody until he is medically cleared, police said Sunday.
Get everything you need to know to start your day, delivered right to your inbox every morning.
CRANSTON, R.I. (WJAR) — Women’s Fund of Rhode Island and U.S. Sen. Jack Reed celebrated Women’s History Month in Cranston with a panel discussion on Monday.
The event was held at the Cranston Public Library at 9 a.m.
Reed and other leaders of WFRI hosted a panel discussion with women leaders in environmental and agricultural advocacy, education, community resilience, housing, finance, workforce development, and more, officials said.
Women’s Fund of Rhode Island and U.S. Sen. Jack Reed celebrated Women’s History Month in Cranston with a panel discussion on Monday. (WJAR)
“Women have played a critical role in this process, most often without any recognition,” Reed said. “Today’s panel brings together an extraordinary group of women who are addressing the challenged of sustainability from various angles and I want to thank you all for your great efforts.”
The panelists highlighted their experiences, shared insights and tips on lifting up women’s voices, provided strategies for sparking change and more.
JOIN THE CONVERSATION (1)
According to officials, some of the panelists included Executive Director of the Rhode Island Food Policy Council Nessa Richman, Executive Director of Strategic Initiatives at Rhode Island College Kim Bright, Newport Housing Authority Executive Director Rhonda Mitchell and more.
Local News
A Seekonk man is accused of murder after he allegedly shot and killed a man in Rhode Island before causing a car crash in Swansea that killed two people last week, police said.
Demitri Sousa, 28, is charged with murder, using a firearm while committing a crime of violence, and carrying a pistol without a license, the Cranston Police Department said.
The shooting occurred Thursday night in Cranston, police said in a press release.
That night, Sousa allegedly arrived at the Cranston home of Javon Lawson, 35. Sousa began banging on the side door of the home, police said.
When Lawson approached the door, he was hit by gunfire from outside, police said.
First responders transported Lawson to the Rhode Island Hospital, where he was pronounced dead, Cranston police said.
“Based on the preliminary investigation, the motive is believed to be a dispute between the suspect and the victim over a mutual female acquaintance. Detectives are continuing this investigation to gain more insight, as well as to collect and analyze evidence,” Colonel Michael Winquist, Chief of Cranston police, said in an emailed statement to Boston.com.
Neighbors gave police video footage that “showed a male subject wearing dark clothing and a mask walking toward the residence moments before the shooting and fleeing immediately afterward,” Winquist said.
The suspect was also seen running to a white Infiniti sedan which then drove off, the Cranston police chief said.
Shortly after the shooting, a license plate reader captured the vehicle driving southbound on Route 10, and then later in Fall River and Westport, Massachusetts. The sedan’s license plate was registered in Sousa’s name, Winquist said.
At around 12:18 a.m. Friday, Swansea police spotted Sousa’s Infiniti barreling down Route 6, Swansea officials said.
Just moments later, Sousa allegedly “crashed into the side of another vehicle, a blue 2022 Subaru Ascent that had been traveling southbound on Route 136,” Swansea Police Chief Mark Foley and Fire Chief Eric Hajder said in a joint press release.
Both vehicles had “catastrophic damage,” and the struck car was engulfed in flames, the Swansea officials said.
The driver and passenger of the hit car — a man and a woman — were declared dead at the scene, they said.
“Swansea Police had been alerted to be on the lookout for the suspect vehicle. However, Swansea Police were not involved in the pursuit and were not pursuing the vehicle at the time of the crash,” the Swansea chiefs wrote. Swansea official have not announced charges related to the fatal crash.
Sousa had been driving the Infiniti and appeared to be suffering from serious injuries, Winquist said. Inside the car, police found a pistol and “additional .22 caliber ammunition was recovered” from Sousa at Rhode Island Hospital, Winquist said.
Police arrested Sousa and transported him to Rhode Island Hospital. Sousa is expected to survive, Winquist said. Sousa will be held in Cranston police custody until he is conscious and medically cleared, Winquist said.
“On behalf of the Cranston Police Department, I want to extend my deepest condolences to the family and loved ones of Javon Lawson and the two individuals who were killed in the crash in Swansea,” Winquist said.
Get everything you need to know to start your day, delivered right to your inbox every morning.
Exclusive: DeepSeek withholds latest AI model from US chipmakers including Nvidia, sources say
Mother and daughter injured in Taunton house explosion
10 acres charred, 5 injured in Thornton grass fire, evacuation orders lifted
Wildfire near Gum Swamp Road in Livingston Parish now under control; more than 200 acres burned
YouTube TV billing scam emails are hitting inboxes
OpenAI didn’t contact police despite employees flagging mass shooter’s concerning chatbot interactions: REPORT
Stellantis is in a crisis of its own making
2026 OSAA Oregon Wrestling State Championship Results And Brackets – FloWrestling