• Rhode Island lawmakers are debating a proposed “millionaires tax” amid an unexpected $233 million state revenue surplus.
• Opponents, like the Rhode Island Public Expenditure Council, argue higher taxes could cause wealthy residents to leave the state.
• Proponents, including the Economic Progress Institute, advocate for the tax to fund critical programs and address future revenue shortfalls.

The fight over Rhode Island’s proposed “millionaires tax” is intensifying as lawmakers prepare their version of the state budget for the year with an unexpected $233 million tax collection windfall.

The business-backed Rhode Island Public Expenditure Council, one of the groups leading opposition to higher taxes on the wealthy, on May 12 released a new report arguing that states with higher income tax rates see more people leaving for states with lower rates.

“Given the experience of Massachusetts and the positive net migration of Bay State residents to Rhode Island over the last several years, it would be particularly risky to adopt a top income tax rate that could undermine this trend,” said RIPEC CEO Michael DiBiase. “Taking on this risk is even more unwise given the recent news that state revenues will be $233 million greater than expected. There is no need to raise taxes – instead the state should focus on fiscal discipline and growing the economy.” 

Massachusetts began collecting a 4% surcharge on income over $1 million in 2023 and Rhode Island leaders hoped rich Bay State residents put off by the hike would move to Rhode Island.

On the other side of the issue, the left-leaning Economic Progress Institute argued that the better-than-expected state revenue collections, while welcome, do not cover all of the money Rhode Island could be potentially losing due to cut in last year’s One Big Beautiful Bill Act.

The Economic Progress Institute is pushing for a more aggressive tax increase − a 3% surtax on income over $640,000 − than McKee’s proposal where the higher tax rate would kick in at income over $1 million.

“It remains imperative the General Assembly pass the proposed surtax on the top one percent this year,” the EPI said in a news release. ” The surtax would generate $203 million per year in revenue, which would bring us closer to: bridging the gulf of lost federal funds, preserving critical programs, and closing the many long-standing equity gaps and crises in healthcare, education, housing, childcare, public transit, and so much more.”   

Their release comes days after the Service Employees International Union Rhode Island State Council rallied at the State House in support of the “Rhode Island’s Revenue Bill,” the tax on income over $640,000. The May 7 rally could be heard during former House speaker K. Joseph Shekarchi’s farewell address.

What is in new RIPEC report?

RIPEC’s latest report finds that:

• Between 2020 and 2025, states with a higher top income tax rate saw higher net out-migration than states with a lower tax rate
• During the post-pandemic period of strong revenue collections, more states have lowered income taxes than raised them
• More residents moved to Rhode Island from Massachusetts (4,796) than any other state from 2020 to 2023 by a large margin. (New York was second at 1,924.)
• Taxpayers leaving Massachusetts in 2023 were on the wealthier side in 2023, making more than $200,000 per year, compared to 2022.

What does it not show?

The IRS data RIPEC analyzed only covers tax filers who make $200,000 or more in Adjusted Gross Income, so it does not show how Massachusetts residents making more than $1 million, the group whose taxes went up, reacted to the change.

And it does not include migration patterns and tax changes for 2024 or 2025.

In its release urging an income tax increase, the EPI said it estimates the state will lose more than $400 million in federal revenue starting in the fiscal year that starts July1, 202,7 from provisions in the One Big Beautiful Bill Act.

“Lawmakers need to be proactive for the many needs, gaps, and crises we have now as well as what’s to come – including likely more federal cuts and an upcoming fiscal cliff,” the EPI release said. “Our wealthiest Rhode Islanders can afford to do more, especially with an average annual tax break of nearly $59,000 from Washington.”

The millionaires tax in McKee’s budget is estimated to generate $135.3 million in new state revenue in a full year.

The surcharge on the 1% of earners − starting at income of $640,000 per year − is estimated to generate $203 million per year.

Bravo cameras will be rolling in Rhode Island once again this summer.

The Real Housewives of Rhode Island has officially been renewed for season two—and honestly, it’s no surprise. The newest addition to the Housewives franchise quickly became a fan favorite, thanks to strong ratings and early award buzz.

READ MORE: RHORI Earned Two Critics’ Choice Award Nominations

Still, not everyone may be celebrating this news.

It didn’t take long for viewers to get hooked on the Ocean State edition, especially with the intense drama that unfolded just a few episodes in.

The Infidelity Allegations That Drove the Season

At the center of it all? The allegations of infidelity involving Rulla Nehme Pontarelli’s husband, Brian—a storyline that quickly became the season’s biggest talking point.

The situation even left Rulla questioning her future on the show, saying she would have to “think very long and hard about” returning for another season.

Will Rulla Return for Season 2?

Now that season two is officially happening, the big question is: will Rulla be back?

Fans certainly hope so. Rulla has been one of the most talked-about cast members on social media, and her storyline has driven much of the conversation around the show.

READ MORE: Fans React to First Look at Real Housewives of Rhode Island Cast

As of now, Rulla is expected to return alongside Alicia Carmody, Rosie DiMare, Ashley Iaconetti, Liz McGraw, Kelsey Swanson, and Jo-Ellen Tiberi.

When and Where Filming Will Begin

If production follows last year’s schedule, filming will likely kick off in mid-June and run through mid-September—once again showcasing Rhode Island at its summer best.

For now, fans seem thrilled. The announcement sparked more than 100 excited comments on Facebook, with viewers eager for more drama, more glamour, and more Ocean State moments.

So don’t be surprised if you spot Bravo cameras popping up around Rhode Island again very soon.

• Republican candidate John Loughlin proposes transforming the Rhode Island lieutenant governor’s office into an inspector general.
• Loughlin aims to use the office’s staff and budget to investigate government waste, fraud, and corruption.
• The state’s lieutenant governor role currently has few official duties beyond succeeding the governor if necessary.

Republican candidate for lieutenant governor John Loughlin wants the office to become the Rhode Island inspector general his party has been seeking in vain for years.

Loughlin, a former state representative, said on May 11 that, if elected, he would staff the underutilized office with people who would help him expose “fraud, waste, abuse, and government corruption.”

“Rhode Islanders are sick and tired of watching their tax dollars disappear into a black hole of inefficiency, cronyism, and outright corruption while the General Assembly talks a big game but delivers nothing − year after year after year,” Loughlin said in a news release. “For more than two decades, the legislature has failed to create a true Inspector General with real investigative power. Enough is enough. If they won’t do it, the Lieutenant Governor’s Office will − starting on day one.”

Why turn the lieutenant governor into an inspector general?

The Rhode Island Constitution gives the lieutenant governor little to no authority beyond being available in case the governor is unable to finish their term. That’s prompted some to call it a “do nothing” office and others to propose abolishing it.

“Frankly, the current workload of the office leaves ample time and resources to do far more for taxpayers than ceremonial appearances and ribbon-cuttings,” Loughlin said in his news release. “Rhode Islanders deserve a Lieutenant Governor’s Office that works every day to protect their money and hold government accountable.”

The lieutenant governor’s office has a budget of $1.4 million, which Loughlin said is enough to staff and run an effective investigative team made up of “certified auditors, investigators, and compliance professionals” to review state agency spending and contracts.

He acknowledged that the lieutenant governor does not have subpoena power, but believes that investigations can be completed utilizing public records requests and gathering publicly-available data.

Loughlin, who ended his talk radio show earlier this year when he announced his campaign for governor, said he would communicate his findings through “RI Report” publications, news briefings and podcasts.

He said he would also make the office’s resources available to city and town leaders.

Republicans have been fighting for an inspector general

Rhode Island Republicans have for years promised to lower state spending by rooting out government waste, fraud and abuse. The last GOP Rhode Island governor, Donald Carcieri, launched a “Fiscal Fitness” program that aimed to save money and find efficiencies.

Democrats criticized Carcieri’s tenure for featuring exorbitant privatization and outsourcing.

Since Carcieri, the idea of creating an independent inspector general similar to those in other states has become a holy grail for Rhode Island Republicans, but the Democratic General Assembly has had little interest in it.

“If our office saves just 1% from Rhode Island’s bloated state budget, the savings would return more than ten times the entire cost of the Lieutenant Governor’s Office to taxpayers – and that’s only the beginning,” Loughlin said in the news release.