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Should rich Rhode Islanders pay higher taxes? Here’s what’s being proposed, and why

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Should rich Rhode Islanders pay higher taxes? Here’s what’s being proposed, and why


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  • Progressives and union leaders say fear that millionaires will flee RI to avoid higher taxes is a “myth.”
  • Massachusetts collected more from its millionaires tax than expected and did not see an exodus of the rich.
  • Business groups say higher taxes would make RI less competitive.

PROVIDENCE − Rhode Island AFL-CIO President Patrick Crowley on Tuesday kicked off this year’s campaign to raise state income taxes on the top 1% of earners wearing an “Eat the Rich” T-shirt.

“You know they say that we have to have the tax policy we have because it benefits job creators,” Crowley told a coalition of groups gathered at the State House in support of the tax hike. “We say we can’t solve tomorrow’s problems with yesterday’s tax policy.”

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Raising taxes on the wealthy has been a goal of Rhode Island progressives and unions at least since the state’s top tax rate was lowered in 2010.

But the idea has been a political non-starter for a series of governors and General Assembly leaders, including the current officeholders.

Post-pandemic federal aid and budget surpluses have reduced the impetus for the increased revenue that new higher taxes would bring, but the state’s fiscal picture could change quickly if there is an economic downturn or Republicans in Washington make deep cuts in Medicaid. The federal government splits the cost of Medicaid coverage with the states, and a reduction in federal funding would make states pony up more or cancel health insurance for some portion of residents.

Under those tougher scenarios, the tax plan the Revenue for Rhode Islanders coalition is pushing − a 3% surcharge on income above $625,000 − may become more politically appealing.

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Advocates estimate that the tax increase would generate $190 million in annual revenue.

What about Massachusetts?

Rhode Island progressives believe their case for raising taxes on the rich has been bolstered by Massachusetts voters passing the “Fair Share” tax increase − a 4% surcharge on income over $1 million − in 2022.

Massachusetts’ higher income taxes make it less likely that wealthy residents will move across the border for tax reasons and, tax-the-rich advocates say, the Bay State’s experience with a millionaires tax is encouraging.

The Economic Progress Institute releases a policy paper Tuesday arguing that tax data shows millionaires are less likely to move than lower-income residents, and that when they do move, taxes are not usually the reason.

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“There’s no evidence we’ve seen of a tax flight from Massachusetts or anywhere else, and the revenue impact is significant,” Economic Progress Institute research director Alan Krinsky said.

Andrew Farnitano, communications director for the group what campaigned for the Massachusetts millionaires tax, called the tax hike a “resounding, unqualified success” and said it had not sent Bay State millionaires and billionaires packing.

He offered as evidence that advocates had advertised that the tax would generate $2 billion per year, and in the first full year of collections Massachusetts took in $2.4 billion.

“They said the money will not show up, because multimillionaires will flee the state en masse rather than pay a new tax. And they were flat-out wrong,” Farnitano said.

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In opposing a tax hike on the rich, Rhode Island Gov. Dan McKee last year said he hoped millionaires would move to Rhode Island to get away from the tax hike in Massachusetts.

How many people would pay more?

Revenue for Rhode Islanders estimates that 5,700 of Rhode Island’s 500,000 tax filers would pay more under the surcharge plan the group supports.

The tax increase is spelled out in legislation − H5473 and S329 − from Rep. Karen Alzate, D-Pawtucket, and Sen. Melissa Murray, D-Woonsocket, but would likely be folded into the state budget if passed. It is part of the slate of bills backed by the House progressive bloc and Rhode Island Working Families Party.

Business groups, including the Greater Providence Chamber of Commerce, have vehemently opposed an income tax increase for many years and are expected to fight this proposed 3% surcharge.

What would it be used for?

Alzate’s and Murray’s bills don’t specify what the new revenue generated by higher taxes would be used for, but the Revenue for Rhode Islanders coalition has a long wish list, including education, school meals and public transit.

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“We could fund housing. We could fund badly needed mental health supports in our schools,” Murray said. “We could fund free school lunch for all, and breakfast. We could fund child care so parents could go back to work. We could help lift children out of poverty and so much more.”



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A battle is underway over recreational cannabis stores in Rhode Island – The Boston Globe

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A battle is underway over recreational cannabis stores in Rhode Island – The Boston Globe


“It’s the last thing I want to happen in the Rhode Island market,” said Edward Dow, chief executive of Solar Therapeutics, which has three dispensaries in Massachusetts and one in Rhode Island. “Don’t do what Massachusetts and every other state has done.”

Business owners who applied for Rhode Island’s 24 retail licenses last year are outraged by the potential about-face, arguing that should have been raised before they shelled out tens of thousands of dollars each to secure premises, hire lawyers, and pay nonrefundable application fees to the state.

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“Massachusetts is light-years ahead of us,” said Karen Ballou, who has applied to open a store on Main Street in Richmond. She noted Massachusetts, which has hundreds of stores open, is now considering social consumption lounges. “They’re going to be rolling that out, and we still don’t have retail stores.”

Ballou said she’s been paying $6,000 a month in rent on the Richmond property since September, and estimated she’s spent at least $50,000 on legal, architectural, and other costs. The state required potential cannabis retailers to have a fully executed lease and zoning certificate before applying for a lottery for one of the 24 licenses. The deadline to apply was Dec. 29.

“We knew that it was a gamble,” Ballou said. But nearly four years since legalization, she asked: “Why isn’t the process moving faster?”

Michelle Reddish, the administrator of Rhode Island’s cannabis office, declined repeated requests for an interview about the upcoming lottery. Spokesperson Charon Rose said the state is aiming to hold it in June, but first has to finish reviewing applications and contend with other factors, including three federal lawsuits challenging a requirement stores be owned by Rhode Island residents.

Rose said no decision has been made on how many licenses will be issued at the lottery.

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The Cannabis Control Commission is considering a phased-in approach, prompting alarm among those who already applied under the assumption that all 24 retail licenses are in play.

“You can regret the rules that you set, you can wish that you made them different, you can change them for the next round, but you can’t move the goal posts after the game is over,” said David Rozen, who applied to open a dispensary in an old Pizza Hut on Reservoir Avenue in Cranston.

The new stores could reshape Rhode Island’s cannabis market. The original medical dispensaries were large facilities relegated mostly to industrial zones, far from the foot traffic of neighborhoods or busy commercial hubs.

Now, under more permissive zoning and changing attitudes toward cannabis, smaller stores could open on busy commercial strips such as Thames Street in Newport or in downtown Providence. They could squeeze in next to a bakery or yoga studio, becoming part of the fabric of everyday life.

The Merchants Bank Building, located at 20 Westminster St. in downtown Providence. A prospective business owner is pitching a cannabis dispensary on the first floor.Alexa Gagosz

There are eight dispensaries currently selling recreational cannabis in Rhode Island after lawmakers in 2022 allowed existing medical marijuana centers to get a hybrid license to sell recreational pot as a transitional measure until the Cannabis Control Commission could get up and running. They sold a combined $120 million worth of cannabis last year.

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But new retailers were always the plan. They include special “social equity” licenses set aside for applicants who were disproportionately affected by marijuana prohibition, as well as for worker cooperatives. The law also set a cap of four stores in each of six geographic zones. (Just 6 of 33 Rhode Island municipalities ban cannabis stores.)

Ambrose Dwyer told the Globe he “got arrested for a joint” in 1982, and again in 1991, felony convictions that ultimately destroyed his life, he said. He wants to open in a former dry cleaning business on Chalkstone Avenue in Providence under the social equity license.

“They’re scared of competition,” Dwyer said of the existing eight dispensaries. “They’ve got a monopoly, and they’ve got their prices through the roof.”

With far fewer stores per capita, Rhode Island prices are higher than Massachusetts, at $5.67 per gram compared to $4.17 per gram in Massachusetts, according to the cannabis commission.

As prices drop, some stores in Massachusetts have been closing.

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“They should not allow dispensaries on top of dispensaries on top of dispensaries,” said Joe Pakuris, who owns the Mother Earth Wellness dispensary in Pawtucket, which is about 2.5 miles from the only one in Providence, the Slater Center, which opened in 2013.

Pakuris said rather than 24 licenses, the state should issue six to eight, and focus on areas that don’t have any stores, such as southern Rhode Island and the northwest corner of the state.

But a majority of applicants are concentrated around Providence and Newport, according to a Globe review of the submissions. In the northwest zone, where four licenses are available, only two applied.

Mother Earth Wellness in Pawtucket offers a “Flower Bar”, allowing customers to sniff cannabis before their purchase. The owners are concerned that opening too many dispensaries in Rhode Island could lead to oversaturation and price drops that would force businesses to close.Erin Clark/Globe Staff

The list of 97 applicants will likely be whittled down before the lottery. Around a dozen did not get zoning approvals by a March 2 deadline, and others could fail to meet requirements.

At most, the commission will issue 20 licenses, because not every license type received an application in each of the six geographic zones.

The state’s 57 cultivators who grow cannabis are also desperate for more stores. They cannot sell directly to consumers or to stores in other states, and many of the current dispensaries in Rhode Island also grow their own product.

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“We can’t wait,” said Allan Fung, a former Cranston mayor and lawyer who is representing multiple retail applicants and cultivators. “We’re asking to have the CCC conduct the lottery as soon as possible, granting all of the licenses at the same time, and not having a phased-in approach.”

The commission, meanwhile, is down to two members after chair Kim Ahern left in October to run for attorney general. Governor Dan McKee has not nominated a replacement, and his office did not have an update this past week.

Robert Jacquard, one of the two remaining members, said he does not yet know how he will vote on the number of retail licenses.

“I’m keeping an open mind,” Jacquard said.

The other commissioner, Layi Oduyingbo, did not respond to requests for comment.

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Marc Gertsacov, who wants to open a store on the first floor of the Merchants Bank building in Providence, said he, too, was “frustrated” by the delays and deliberation.

“I think that the state should let the market decide how much is too much,” Gertsacov said.

If selected, Gertsacov said he could open in a month or two. He picked the location because it could benefit from the foot traffic of tourists, college students, and workers in the city’s financial district who — for the first time in downtown Providence — could stop by after their 9-to-5.

“It’s a different version of a happy hour,” he said.


Steph Machado can be reached at steph.machado@globe.com. Follow her @StephMachado.

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Car rolls over in North Kingstown

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Car rolls over in North Kingstown


A car rolled over after a crash in North Kingstown Saturday afternoon.

The crash occurred on Ten Rod Road.

A car rolled over after a crash in North Kingstown on March 21, 2026. (WJAR).png

NBC 10 News crews on scene saw one car flipped over.

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There was no word on the cause of the crash or if there were any injuries.



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Rhode Island Community Food Bank hosts Veterans Resource Expo

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Rhode Island Community Food Bank hosts Veterans Resource Expo


Veterans and their families gathered at the Rhode Island Community foodbank in Providence for the Veterans Resource Expo.

Organizers with Veterans Incorporated said the goal the goal of the event was to connect attendees with organizations that offer support in areas like healthcare, housing, overall quality of life, and more.

MORE NEWS: Providence fire displaces 4 adults, 1 child

Community partners were there too to answer any questions that veterans and their families may have had.

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