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Rhode Island weighs new tax on highest earners as Trump policy pressures mount

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Rhode Island weighs new tax on highest earners as Trump policy pressures mount


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.

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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.

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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.

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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.”

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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.

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“You can say tax the rich, but what is the rich?” he said.



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Rhode Island

19-Year-Old Charged With Deadly Providence Pedestrian Bridge Stabbing

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19-Year-Old Charged With Deadly Providence Pedestrian Bridge Stabbing


Patrol officers were dispatched to the bridge shortly before 11 p.m. Tuesday and found a 40-year-old man with stab wounds to his chest, Josh Estrella, the director of communications for the city of Providence, said in an email.

The Providence Fire Department transported the man to Rhode Island Hospital, Estrella said.





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Would You Dare Step Inside the Scariest Porta Potty in Rhode Island?

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Would You Dare Step Inside the Scariest Porta Potty in Rhode Island?


I think we may have found the most terrifying porta potty in New England. Here’s how it happened.

We were lucky enough to broadcast The MGM Show live from DeWolf Tavern in Bristol, Rhode Island this morning.

Why Bristol Is Worth the Trip

Aside from being one of the most patriotic towns in America, Bristol is also one of the most beautiful seaside towns.

There’s only one problem: the bridge that you need to use to get to Bristol scares me to death. Don’t get me wrong, I don’t scare easily with things like bridges, tunnels, or airplanes. However, the Mount Hope Bridge is one that makes me want to close my eyes and “hope” for the best. Maybe that’s where the name comes from.

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What Is Happening With the Mount Hope Bridge Construction?

If you live in the area of the Mount Hope Bridge, you know all too well about the construction that has been happening over the spring and summer. I noticed the construction today and it got me wondering if any of them were afraid of heights.

Michael Rock/Townsquare Media
Michael Rock/Townsquare Media

The Porta Potty That Might Be Rhode Island’s Scariest

If heights bother you, there’s definitely one added feature that could make working construction on the Mount Hope Bridge even more difficult, if not impossible.

The porta potty that is perched on top of the bridge is the stuff nightmares are made of. I’m not sure how badly I’d need to have to use a bathroom before I succumbed to opening the door of this porta potty and climbing inside.

Michael Rock/Townsquare Media
Michael Rock/Townsquare Media
Michael Rock/Townsquare Media

How can anyone get in there and not picture themselves slowly free falling in the smelly chamber as indelible blue goo leaves the toilet as you prepare for your humiliating doom?

Take a look at these pictures and ask yourself if you could ever use it. This might be Rhode Island’s most terrifying porta potty.

15 Busiest Places to Eat in New Bedford

Here is data from the past 12 months that ranks the food spots with the busiest foot traffic in New Bedford.

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Gallery Credit: Michael Rock

Unwritten Rules For Living in New Bedford

Here are the rules you might not know if you don’t live in New Bedford.

Gallery Credit: Michael Rock





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These 8 Towns In Rhode Island Were Ranked Among US Favorites In 2026

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These 8 Towns In Rhode Island Were Ranked Among US Favorites In 2026


Gray’s Ice Cream has been scooping cones at a Rhode Island crossroads since 1923. That kind of staying power is what keeps these eight towns on national favorites lists year after year. Newport carries the Gilded Age mansions and a 3.5-mile shoreline walk past their lawns. Woonsocket holds a former church that Yankee Magazine named the Sistine Chapel of America. Tiverton trades on windsurfing beaches and a colonial village full of galleries. Each town here earns a full day, and several reward a whole weekend.

Newport

Easton Beach, Rhode Island. Credit: Wangkun Jia via Shutterstock.

Newport faces the Atlantic from the southern tip of Aquidneck Island, and USA Today 10Best readers voted it the No. 6 coastal small town in America for 2024. The Cliff Walk runs 3.5 miles between Easton’s Beach and Bailey’s Beach, a National Recreation Trail since 1975, with surf on one side and Gilded Age lawns on the other. Along the way stands The Breakers, the 70-room summer home Cornelius Vanderbilt II completed in 1895, open for tours through the Preservation Society of Newport County. Downtown, Touro Synagogue, dedicated in 1763, remains the oldest synagogue building in the United States and still houses an active congregation. Bowen’s Wharf now stacks restaurants and galleries beside the docks. Newport fits anyone who wants beach days framed in marble.

Middletown

A busy sea beach in Middletown, Rhode Island.
A busy sea beach in Middletown, Rhode Island.

Middletown stretches across the center of Aquidneck Island, and its shoreline carries the day. Sandy crescents at Second Beach and Third Beach bookend a peninsula that ends at Sachuest Point National Wildlife Refuge. Those 242 protected acres host more than 200 bird species on migration, and snowy owls sometimes winter there. Inland, the Norman Bird Sanctuary keeps seven miles of trails across roughly 300 acres; the Hanging Rock route looks down on the refuge and the beach below. Newport Vineyards pours its tastings in Middletown, despite the name, an easy stop on the ride home. Middletown is the pick for visitors who measure a good day in shorebirds and sand.

Portsmouth

A regal topiary lion surrounded by colorful annuals at Green Animals Topiary Gardens.
A regal topiary lion surrounded by colorful annuals at Green Animals Topiary Gardens. Editorial credit: LEE SNIDER PHOTO IMAGES / Shutterstock.com

Portsmouth crowns the north end of Aquidneck Island and has been settled since 1638, second in age only to Providence among Rhode Island municipalities. Green Animals Topiary Garden clips more than 80 figures from privet, yew, and boxwood on a seven-acre estate above Narragansett Bay. The oldest topiary garden in the country stays in bloom through the warm months, roughly May into October. Glen Manor House, a town-owned French-style manor on the Sakonnet River, presides over the old Glen Farm estate, with the walking paths and picnic groves of Glen Park alongside. Greenvale Vineyards pours estate wines in a tasting room of former horse stalls beside 27 acres of riverside vines. Families head for the shallow water at Sandy Point Beach. Portsmouth works for anyone who likes a coastline with topiary elephants on it.

Tiverton

The Sakonnet River flows by Tiverton, Rhode Island.
The Sakonnet River flows by Tiverton, Rhode Island.

Tiverton lines the east bank of the Sakonnet River, where shore roads and stone walls funnel day-trippers toward Tiverton Four Corners. Galleries, antique shops, and the Four Corners Arts Center fill buildings dating to the 18th century. Gray’s Ice Cream has been scooping at the crossroads since 1923, with a summer line to prove it. Behind the village, Weetamoo Woods and the adjoining Pardon Gray Preserve spread hundreds of acres of oak forest, old mill ruins, and walking trails. Fogland Beach is a black-stone beach located on Fogland Point, where steady wind draws windsurfers and the views run across to Aquidneck Island. Tiverton makes the case for a slow afternoon that ends with a cone at the crossroads.

Warren

Warren, Rhode Island.
Warren, Rhode Island. Editorial Photo Credit: Kenneth C. Zirkel, CC BY-SA 4.0, via Wikimedia Commons.

Warren gets introduced as the smallest town in the smallest county in the smallest state, and its few square miles hold an outsized food scene. Blount Clam Shack offers clam cakes beside the docks on Water Street, while the Hope & Main food incubator keeps hatching new food businesses a few blocks inland. The East Bay Bike Path is a 14.5-mile path between Providence and Bristol, dropping riders within a short walk of the waterfront. History holds the center of town too: the Historic Warren Armory still fronts a downtown that grew up on shipbuilding and marine trades. Warren belongs on this list for travelers who plan trips around lunch.

East Greenwich

Downtown East Greenwich, Rhode Island.
Downtown East Greenwich, Rhode Island. Editorial credit: digidreamgrafix / Shutterstock.com.

East Greenwich climbs from Greenwich Cove in a district known as Hill and Harbor, with Main Street running the ridge a block above the water. The Greenwich Odeum opened on that street in 1926 at the tail end of vaudeville and reopened in the fall of 1994 as a performing arts mainstay. Sailboats crowd the cove below Scalloptown Park, named for the shellfishing grounds that once ran the local economy, with walking paths along the bay. The 1773 Varnum House Museum on Peirce Street preserves the home of Continental Army General James Mitchell Varnum. East Greenwich suits travelers who want dinner with a marina view and a show afterward.

North Kingstown

Updike Square in Wickford Village, North Kingstown, Rhode Island.
Updike Square in Wickford Village, North Kingstown, Rhode Island.

North Kingstown keeps its showpiece in Wickford, a harbor village holding one of the largest collections of 18th-century homes in the Northeast. The Old Narragansett Church was built in 1707 and moved to Wickford in the 1800s. It is also believed to be the oldest Episcopal church building in the northeastern United States. Just north of the village, Smith’s Castle dates to 1678, one of the oldest houses in Rhode Island, built near the site where Roger Williams ran a 1637 trading post. Each summer, the Wickford Art Festival, held since 1962, brings roughly 200 juried artists to Wilson Park. Kayaks trace the edges of one of the best-protected natural harbors on the East Coast.

Woonsocket

The historic Stadium Theatre along Main Street in downtown Woonsocket.
The historic Stadium Theatre along Main Street in downtown Woonsocket.

Woonsocket bends around the Blackstone River at the state’s northern edge, where mill-era fortunes paid for a cultural inheritance that still surprises first-timers. The St. Ann Arts and Cultural Center holds the largest collection of fresco paintings in North America. Guido Nincheri painted the former church interior over eight years, using hundreds of Woonsocket residents as models. Yankee Magazine later dubbed it the Sistine Chapel of America, and seasonal tours run on Sundays. On Monument Square, the 1926 Stadium Theatre survived the end of vaudeville and a long closure before a 2001 restoration; it now books national acts alongside community productions. The Museum of Work and Culture walks visitors from a Québec farmhouse into the mills that drew thousands of French Canadian families south. Autumnfest closes the season each Columbus Day weekend with carnival rides, craft booths, and fireworks. Woonsocket rewards travelers who like their art with mill-town history attached.

Eight Towns, One Small State

What links these eight towns is less geography than staying power. Newport has drawn visitors to its mansions for more than a century, and Gray’s has scooped at the Tiverton crossroads since 1923. Woonsocket’s frescoes and Wickford’s 18th-century streets reward an afternoon as readily as Newport’s Cliff Walk does. The reputations came from different sources, mansions in one town, a wildlife refuge in another, an art festival in a third, but each holds up to a close look. That is what keeps them on the lists.

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