Connect with us

Rhode Island

Wealth Tax in Rhode Island Could Raise Millions While Improving Fairness – Uprise RI

Published

on

Wealth Tax in Rhode Island Could Raise Millions While Improving Fairness – Uprise RI


Massachusetts recently implemented a 4% surtax on annual incomes over $1 million, known as the “Fair Share” wealth tax. Analysis from the Institute on Taxation and Economic Policy (ITEP) finds that this tax makes Massachusetts’ overall state and local tax system more equitable.

Specifically, the ITEP analysis shows that prior to the “Fair Share” tax, the top 1% of earners in Massachusetts paid 7.7% of their income in state and local taxes. The bottom 95% of earners paid 9.4% of their income in Massachusetts taxes. With the 4% surtax on income over $1 million, the tax rate on the top 1% of earners rises to 9.1% – still below the 9.4% rate the bottom 95% pay, but an increase in progressivity and tax fairness.

The ITEP data indicates that while the “Fair Share” wealth tax made Massachusetts’ tax system more equitable, there is room for further improvement. Even with the surtax, the top 1% in Massachusetts pay a smaller share of their income in taxes than the bottom 95 percent. This demonstrates that a single wealth tax, while impactful, may not fully flip a regressive system into a progressive one. Regular re-evaluation and adjustment of top-end tax rates may be required to continue furthering tax fairness over time.

Nevertheless, ITEP’s 50-state analysis makes clear that the “Fair Share” surtax, along with other tax changes in Massachusetts last year, have combined to make Massachusetts one of the least regressive states in the country tax-wise. In fact, whereas Massachusetts ranked in the bottom third of states for tax fairness before the recent changes, it now ranks in the top ten for tax progressivity.

Advertisement

The “Fair Share” wealth tax represents a major driver of the improvement in tax fairness in Massachusetts. While nine other states collect a greater share of income from their top 1% of earners, the addition of the 4% surtax on annual income over $1 million went further in Massachusetts than most states’ attempts to tax the wealthy and reduce tax code regressivity.

What does this mean for Rhode Island? While Rhode Island does not currently have a comparable wealth tax, the experience in nearby Massachusetts provides an example of how a similar approach could improve equity in Rhode Island’s tax code as well.

Rhode Island policymakers looking to invest in programs benefiting lower and middle income families may want to consider modeling a wealth tax on Massachusetts’ “Fair Share” surtax. Further analysis would be needed to estimate potential revenue yields from a wealth tax in Rhode Island, and how new funds could be utilized.

However, the clear impacts in Massachusetts can inform initial policy debates in Rhode Island. The ITEP data shows that targeting even marginally higher tax rates on the very highest earners can make state tax systems measurably more fair. Additional revenue generated can provide substantial resources to expand public services that promote broadly shared economic opportunity.

The ITEP data could also help shape discussions in Rhode Island around optimal tax rates and income thresholds for a potential wealth tax. Their analysis shows that while Massachusetts 4% surtax on income over $1 million improved tax progressivity, the state’s tax system remains regressive overall. This implies Rhode Island may need a higher wealth tax rate than Massachusetts or need to apply graduated rates across multiple income brackets to completely flip its tax code right-side up.

Advertisement

Rhode Island ranks near the middle nationally in terms of the tax fairness of its current state and local tax structures. But with thoughtful wealth tax design modeled on Massachusetts’ example, Rhode Island could vault into the top tier of states for tax progressivity.

Massachusetts dedicates its “Fair Share” wealth tax income for education and transportation. Rhode Island revenue could similarly fund investments in areas like infrastructure, affordable housing, healthcare, and education.

For instance, increased access to early childhood education provides perhaps the highest return on public investment available. Enabling more working families to enroll children in pre-K programs yields better academic, social, and economic outcomes over their lifetimes. It also strengthens communities overall by developing future generations of better-prepared, higher-earning workers and citizens.

If modeled after Massachusetts, a wealth tax could provide Rhode Island with hundreds of millions in new annual revenue that could make transformative investments possible. Though only approximately 2,000 high net worth households would pay the wealth tax, benefits would be felt across Rhode Island through expansions of vital public services.

As Rhode Island continues to debate its fiscal future, examining the impacts of a wealth tax on fairness, revenue, and public services can contribute an important perspective. Massachusetts’ “Fair Share” experience shows the potential of targeted tax increases on top earners to further tax progressivity, raise substantial revenue for key priorities like education, and promote broadly shared prosperity. Rhode Island policymakers would be wise to take notice.

Advertisement



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Rhode Island

Prosecutors in Rhode Island drop charge against former Bay View athletic director

Published

on

Prosecutors in Rhode Island drop charge against former Bay View athletic director


Prosecutors in Rhode Island dropped a fugitive from justice charge against a former Catholic school athletic director.

John Sung was arrested in East Providence last month. He was wanted in Florida for a non-violent felony.

After his arrest, he was fired from his position at St. Mary Academy Bay View in Riverside.

Broward County court records show Sung was taken into custody last week. He posted bond.

Advertisement



Source link

Continue Reading

Rhode Island

The top returning girls wrestlers? Here are 10 to watch this season

Published

on

The top returning girls wrestlers? Here are 10 to watch this season


play

Girls wrestling took off last winter in its second year of state championships.

Exactly 50 participants, across a dozen weight classes, competed in the March extravaganza at the Providence Career and Technical Academy. Each weight class was contested, unlike the first year of the tournaments, and new title winners were crowned.

Advertisement

Pilgrim’s Allison Patten was named Most Outstanding Wrestler for her win at 107. The Patriots’ star also finished runner-up at the New England Championships and is among this year’s returnees. But who else should we be keeping an eye on this winter?

Here are 10 standouts who we think might shine this year.

Enjoy! 

Athletes listed in alphabetical order.

Yasmin Bido, Hope

Senior

Advertisement

Bido snagged her first individual crown with a 16-0 decision at 152 pounds. The Blue Wave grappler also finished runner-up at 165 in Year 1 of the tournament.

Irie Byers, North Kingstown

Sophomore

Byers stormed onto the scene with a title in her first year on the mat. She captured the 120-pound championship with an 11-1 win in the finals. The Skipper returnee is one of a few wrestlers who could repeat.

Jolene Cole, Scituate

Sophomore

Cole helped Scituate to the team title in the first year that the award was handed out. Scituate is a bit of a girls wrestling factory, and Cole added to that lineage with her pin at 114 pounds.

Advertisement

Alei Fautua, North Providence

Sophomore

Fautua breezed to the title at 235 pounds with a pin in just 25 seconds. She led the Cougars to a runner-up finish as a team as Scituate edged the Cougars by just seven points. Fautua then finished fourth at the New England championships.

Kamie Hawkins, Exeter-West Greenwich

Junior

This year is all about redemption for Hawkins. She was one of the first state champions and came back last year looking to defend her 120-pound title. It wasn’t meant to be, but make no mistake, Hawkins is one of the state’s best.

Advertisement

Abigail Otte, Exeter-West Greenwich

Junior

Otte was a repeat champion at 138 pounds as she seized the title with a pin in 24 seconds. It’s likely a safe bet that Otte might capture her third crown in three years.

Allison Patten, Pilgrim

Junior

A repeat season isn’t out of the question for Patten. She won the 107 pound title with a pin in 49 seconds. What’s next for the junior? End the season with a New England title, too.

Chloe Ross, Scituate

Sophomore

Advertisement

It was quite the debut for Ross. The state crown was a breeze as the freshman won via pin in 1:16. But then came the New England tournament where the Spartan star snagged second place. Might there be a different ending to her season this year?

Meili Shao, La Salle

Senior

Shao was one of the first wrestling champions when she captured the 132 title two seasons ago. A repeat crown wasn’t in the cards as she finished runner-up in the class. But the Ram has returned and could be out to avenge last year’s finish.

Emily Youboty, Hope

Senior

The Blue Wave wrestler is the returning 100-pound winner after she captured the crown with a 19-3 technical fall victory in last season’s title meet.



Source link

Advertisement
Continue Reading

Rhode Island

Thieves steal $470K worth of electrical wire from Rhode Island highways

Published

on

Thieves steal 0K worth of electrical wire from Rhode Island highways


The Rhode Island Department of Transportation is facing a costly and dangerous problem after thieves stole roughly 11 miles of electrical wire from highways across the state, leaving long stretches of road without lighting and drivers at risk.

RIDOT spokesperson Charles St. Martin said there have been at least 16 thefts in recent weeks, mostly in Providence, but also in Cranston, Johnston and Warwick. The agency first realized something was wrong after drivers began calling to report unusually dark sections of highway.

“Right now, about 16 sites or so around the Providence Metro area down into Cranston and Warwick and Johnston that we have different lengths of highway where the lights are out,” St. Martin said in an interview with NBC10.

Cars driving on the highway with no overhead lights. (WJAR)

Advertisement

St. Martin says thieves accessed underground electrical systems through manholes, cutting and removing large quantities of wire.

RIDOT Director Peter Alviti, speaking on WPRO Radio with NBC10’s Gene Valicenti, said the scale of the problem is staggering and growing.

“You would not believe how many locations throughout the state that we are experiencing the theft of our underground electric cables,” Alviti said. “They’re pulling it out and then selling it for scrap to make money.”

The thefts pose serious safety risks. St. Martin said the suspects are cutting into live electrical wires leaving drivers to navigate dark highways and roads.

The cost to taxpayers is also significant. According to RIDOT, the stolen wire alone carries a material cost of about $470,000, not including labor to reinstall it.

Advertisement

“When you just look at the amount of wire that we are talking about that we are missing now, it is about 11 miles worth of wire,” St. Martin said. “Just the material cost about $470,000.”

RIDOT says it will likely take several weeks to fully restore lighting along impacted highways, including I-195, I-295, Route 37, Route 10 and Route 6. The agency plans to install heavier, anti-theft manhole covers in the coming months and is working with state and local police to identify those responsible.

Drivers like Perry Cornell say the outages make already challenging roads even more dangerous.

“Dangerous,” Cornell said when asked how it feels driving through dark stretches of highway. “It’s unsafe.”

Lights off on the highway. (WJAR)

Lights off on the highway. (WJAR)

Advertisement

Cornell said the situation raises questions about whether more could have been done to prevent the thefts.

“Why wasn’t this stopped and why wasn’t there a preventative action taken by RIDOT to stop this from continuing to happen?” he asked.

RIDOT is asking the public to remain vigilant. Anyone who sees suspicious activity near highway manholes is urged to contact local police immediately.



Source link

Advertisement
Continue Reading

Trending