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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.
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.
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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.
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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.
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Video of coach Archie Miller speaking after URI falls to St. Joseph’s
The Rams lose to St. Joseph’s 61-55 on Saturday, Feb. 28 at the Ryan Center.
SOUTH KINGSTOWN – Whatever hopes the University of Rhode Island harbored for a men’s basketball Senior Day upset of Saint Joseph’s disappeared on a rare made 3-pointer.
Jaiden Glover-Toscano connected on just one of his eight attempts from deep, and it turned out to be a backbreaker. The Hawks mustered just enough offense to hold off the Rams at the Ryan Center in an Atlantic 10 rock fight that went to the visitors.
Glover-Toscano hit from the left wing with 3:37 left, restoring a two-possession lead. Saint Joseph’s did just enough from there to finish a 61-55 victory on Feb. 28 and extend URI’s late-season slide.
“We needed to get that stop,” URI coach Archie Miller said. “It was in the balance. Those last three minutes, whoever was going to make the play or get the stop was going to win.
“They made a big shot right there.”
The Rams cut a 13-point deficit all the way to 56-55 when Tyler Cochran knocked down both ends of a 1-and-1 at the line with 3:54 left. The Hawks overloaded the right side on the ensuing possession, and Derek Simpson got a step on his man toward the paint. He fired a crosscourt pass to Glover-Toscano that caught URI’s defense rotating, and the air came out of the announced 6,391 fans in the building when the net rippled in front of the visiting bench.
“We weren’t able to convert,” Miller said. “That’s kind of the name of the game. You’ve got to have some plays go your way.”
Myles Corey missed a 3-pointer at the other end, and Simpson played facilitator again to give Saint Joseph’s more of a cushion. He found Justice Ajogbor rolling to the rim for a slam with 2:36 left and it was a six-point game. Neither team scored again on an afternoon where they both shot under 40% from the field and went a combined 10-for-61 from deep.
“The bottom line for our team today – and let’s just keep it simple – is we didn’t make a shot,” Miller said. “We really struggled to shoot the ball.”
The Hawks built their largest lead with 13:53 to play, thanks to what was a major sore spot on the afternoon for the Rams. URI couldn’t inbound the ball after an Ajogbor free throw, and Jonah Hinton was called for an offensive foul. Simpson drove for a two-hand slam on the ensuing possession, part of a 13-0 shutout for the visitors on points off turnovers.
“We have no room for error,” Miller said. “That plays a big role.”
The Rams (15-14, 6-10 Atlantic 10) enjoyed their best stretch of the day after falling into that 44-31 hole. Alex Crawford offered some life with a couple of 3-pointers, and Jahmere Tripp buried another from the left corner to make it a 54-51 game with 5:10 left. Crawford’s hard drive down the right kept it a three-point game, and Cochran’s successful trip to the line put URI in position to steal it late.
“I feel like we had open shots,” Crawford said. “We had a lot of good looks – shots we usually make.”
Saint Joseph’s (19-10, 11-5) won its fourth straight and continued an impressive rally from an 0-2 start in league play. The Hawks are on course for a double bye in the upcoming conference tournament, while the Rams look increasingly likely to play on the opening day in Pittsburgh. A home date with Duquesne and a road trip to Fordham wrap the regular season this week, and URI hopes guard RJ Johnson (concussion protocol) will be able to return at some point.
“It did hurt a little bit,” Crawford said. “You face adversity, you’ve got to find a way to make up for missed players.”
SAINT JOSEPH’S (61): Dasear Haskins 5-11 4-5 14, Justice Ajogbor 4-5 1-3 9, Derek Simpson 4-10 4-4 13, Jaiden Glover-Toscano 3-14 0-1 7, Austin Williford 2-9 0-0 5, Khaafiq Myers 4-7 0-0 9, Jaden Smith 1-2 1-3 3, Anthony Finkley 0-2 1-2 1. Totals 23-60 11-18 61.
RHODE ISLAND (55): Tyler Cochran 2-13 8-8 13, Keeyan Itejere 4-5 2-2 10, Jahmere Tripp 4-12 2-3 11, Jonah Hinton 2-11 0-0 5, Myles Corey 1-8 1-4 4, Alex Crawford 4-6 2-4 12, Jalen Harper 0-6 0-0 0, Drissa Traore 0-1 0-0 0. Totals 17-62 15-21 55.
Halftime – SJ, 30-27. 3-point FG – SJ 4-28 (Haskins 0-3, Simpson 1-5, Glover-Toscano 1-8, Williford 1-8, Myers 1-2, Finkley 0-2), RI 6-33 (Cochran 1-9, Tripp 1-4, Hinton 1-7, Corey 1-4, Crawford 2-3, Harper 0-5, Traore 0-1). Rebounds – SJ 45 (Myers 8), RI 46 (Cochran 15). Assists – SJ 14 (Simpson 5), RI 12 (Corey 4). Turnovers – SJ 13 (Simpson 3, Myers 3), RI 13 (Corey 5). Blocked shots – SJ 7 (Ajogbor 3), RI 4 (Itejere 2, Tripp 2). Steals – SJ 8 (Simpson 3), RI 4 (Tripp 2). Attendance – 6,391.
bkoch@providencejournal.com
On X: @BillKoch25
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