Guest MINDSETTERS™ Sen. Goldin & Rep. Slater: Making Sure We All Make It in RI
Thursday, April 14, 2016
Sen. Gayle L. Goldin and Rep. Scott A. Slater
Last year, the General Assembly and the governor took an important first step to help thousands of working families make ends meet by increasing the state’s Earned Income Tax Credit (EITC) — a tax benefit for workers earning $50,000 or less — to 12.5 percent of the federal credit.
As the Ocean State strives to become a place where all families can enjoy our natural beauty while maintaining affordable housing, nutritious food, and a quality education, a further increase to the state’s Earned Income Tax Credit is a common-sense tax policy we should all rally behind. An increased state EITC means 83,000 Rhode Island taxpayers are rewarded for working hard to keep their families afloat.
That is why, for the second consecutive year, we have introduced legislation in the House and Senate to further increase the state EITC to 20 percent of the federal credit. With our legislation, a family qualifying for the maximum EITC will receive a tax credit worth up to $1,248—a significant amount for our struggling working families.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST
Massachusetts and Connecticut have adopted the refundable state EITC as smart policy to support working families, with refundable credits of 23 percent and 27.5 percent, respectively.
The paychecks of too many Rhode Island workers have fallen behind and our current tax structure does not provide adequate relief. Of the 50 occupations expected to produce the most job openings by 2022, nearly one in four jobs will pay less than $11 an hour, the amount the Economic Progress Institute (EPI) finds a single adult needs to earn to meet his or her most basic needs and less than half of what a single parent of two children requires.
We all benefit from living in a state where hard work is rewarded. An increased EITC helps our workforce but it also helps our local economies. More money in the pockets of working Rhode Islanders means more money in the cash registers of supermarkets, retailers, and other local businesses. The return on investment is large. The Economic Progress Institute estimates that increasing the EITC to 20 percent would not only put $12 million in pockets of working families, but add approximately $15 million to the economy through the multiplier effect. Raising the EITC to 15 percent, as proposed by the governor, would put $4 million in the pockets of working families, and add around $5 million to the economy through the multiplier effect.
With last year’s EITC increase, the General Assembly and the governor took an important step to reduce income inequality in the Ocean State and reward our workers who are doing their best to make it in Rhode Island.
We strongly believe that if you are working, you should not be poor. Raising the minimum wage and expanding EITC is helping those who work for lower wages to get ahead. The very least we can do is increase a common-sense tax credit that helps our hardest workers make ends meet. If we do not, it saps the belief that our state is a place where hard work and persistence can lead to a better life. A state EITC increased to 20 percent of the federal credit is the smartest investment we can make. We can all profit from living in a state where hard work is rewarded, taxes are fairer, and our local businesses thrive.
Sen. Gayle Goldin represents District 3 and Rep. Scott Slater represents District 10, both in Providence. They are Democrats.
Related Slideshow: The Highest Taxed Communities for 2016
View Larger +
Prev
Next
#39
New Shoreham
Taxes for median single family home: $928.00
Taxes for 2010 Honda Accord: $128.70
Total: $1,056.70
Median Household Income: $90,526
Total taxes as percent of median income: 1.1%
View Larger +
Prev
Next
#38
Little Compton
Taxes for median single family home: $1,249.47
Taxes for 2010 Honda Accord: $183.48
Total: $1,432.95
Median Household Income: $74,698
Total taxes as percent of median income: 1.9%
View Larger +
Prev
Next
#37
Jamestown
Taxes for median single family home: $1,907.89
Taxes for 2010 Honda Accord: $190.34
Total: $2,098.23
Median Household Income: $95,833
Total taxes as percent of median income: 2.1%
View Larger +
Prev
Next
#36
Charlestown
Taxes for median single family home: $2,196.90
Taxes for 2010 Honda Accord: $173
Total: $2,369.90
Median Household Income: $68,904
Total taxes as percent of median income: 3.4 %
View Larger +
Prev
Next
#35
Narragansett
Taxes for median single family home: $2,159
Taxes for 2010 Honda Accord: $217.27
Total: $2,376.27
Median Household Income: $65,842
Total taxes as percent of median income: 3.6%
View Larger +
Prev
Next
#34
Newport
Taxes for median single family home: $2,318.59
Taxes for 2010 Honda Accord: $309.54
Total: $2,628.13
Median Household Income: $61,320
Total taxes as percent of median income: 4.2 %
View Larger +
Prev
Next
#33
Westerly
Taxes for median single family home: $2,351.18
Taxes for 2010 Honda Accord: $391.64
Total: $2,742.82
Median Household Income: $62,381
Total taxes as percent of median income: 4.3 %
View Larger +
Prev
Next
#32
Barrington
Taxes for median single family home: $3,965.72
Taxes for 2010 Honda Accord: $554.40
Total: $4,520.12
Median Household Income: $103,937
Total taxes as percent of median income: 4.3%
View Larger +
Prev
Next
#31
Exeter
Taxes for median single family home: $3,339.90
Taxes for 2010 Honda Accord: $430.19
Total: $3,770.08
Median Household Income: $83,340
Total taxes as percent of median income: 4.5%
View Larger +
Prev
Next
#30
Portsmouth
Taxes for median single family home: $3,433.34
Taxes for 2010 Honda Accord: $208
Total: $3,641.24
Median Household Income: $77,483
Total taxes as percent of median income: 4.6%
View Larger +
Prev
Next
#29
Richmond
Taxes for median single family home: $4,580.68
Taxes for 2010 Honda Accord: $239.07
Total: $4,819.75
Median Household Income: $96,533
Total taxes as percent of median income: 4.9 %
View Larger +
Prev
Next
#28
Middletown
Taxes for median single family home: $3,286.19
Taxes for 2010 Honda Accord: $211.86
Total: $3,498.05
Median Household Income: $70,244
Total taxes as percent of median income: 4.9%
View Larger +
Prev
Next
#27
South Kingstown
Taxes for median single family home: $3,372.49
Taxes for 2010 Honda Accord: $246.97
Total: $3,619.46
Median Household Income: $72,021
Total taxes as percent of median income: 5.02 %
View Larger +
Prev
Next
#26
North Smithfield
Taxes for median single family home: $3,624.56
Taxes for 2010 Honda Accord: $496.58
Total: $4,124.14
Median Household Income: 78,163
Total taxes as percent of median income: 5.2 %
View Larger +
Prev
Next
#25
Cumberland
Taxes for median single family home: $3,711.48
Taxes for 2010 Honda Accord: $262.28
Total: $3,973.76
Median Household Income: $74,499
Total taxes as percent of median income: 5.3 %
View Larger +
Prev
Next
#24
West Greenwich
Taxes for median single family home: $4,165.11
Taxes for 2010 Honda Accord: $251.06
Total: $4,416.06
Median Household Income: $80,987
Total taxes as percent of median income: 5.4 %
View Larger +
Prev
Next
#23
Bristol
Taxes for median single family home: $3,107.39
Taxes for 2010 Honda Accord: $229
Total: $3,336.41
Median Household Income: $60,988
Total taxes as percent of median income: 5.4 %
View Larger +
Prev
Next
#22
North Kingstown
Taxes for median single family home: $4,193.89
Taxes for 2010 Honda Accord: $290.92
Total: $4,484.81
Median Household Income: $80,506
Total taxes as percent of median income: 5.5 %
View Larger +
Prev
Next
#21
Lincoln
Taxes for median single family home: $3,323.49
Taxes for 2010 Honda Accord: $404.71
Total: $3,782.20
Median Household Income: $66,827
Total taxes as percent of median income: 5.5 %
View Larger +
Prev
Next
#20
Scituate
Taxes for median single family home: $4,163.46
Taxes for 2010 Honda Accord: $378.70
Total: $4,542.16
Median Household Income: $80,802
Total taxes as percent of median income: 5.6%
View Larger +
Prev
Next
#19
East Greenwich
Taxes for median single family home: $5,145.66
Taxes for 2010 Honda Accord: $302
Total: $5,447.67
Median Household Income: $92,727
Total taxes as percent of median income: 5.8%
View Larger +
Prev
Next
#18
Tiverton
Taxes for median single family home: $4,159.12
Taxes for 2010 Honda Accord: $252.64
Total: $4,411.76
Median Household Income: $73,438
Total taxes as percent of median income: 6%
View Larger +
Prev
Next
#17
Smithfield
Taxes for median single family home: $3,817.96
Taxes for 2010 Honda Accord: $514.80
Total: $4,332.76
Median Household Income: $71,305
Total taxes as percent of median income: 6%
View Larger +
Prev
Next
#16
Glocester
Taxes for median single family home: $4,806.67
Taxes for 2010 Honda Accord: $321.68
Total: $5,128.35
Median Household Income: $82,193
Total taxes as percent of median income: 6.2%
View Larger +
Prev
Next
#15
Foster
Taxes for median single family home: $4,654.56
Taxes for 2010 Honda Accord: $487.74
Total: $5,142.30
Median Household Income: $80,720
Total taxes as percent of median income: 6.3%
View Larger +
Prev
Next
#14
Hopkinton
Taxes for median single family home: $4,428.57
Taxes for 2010 Honda Accord: $279.57
Total: $4,708.14
Median Household Income: $71,636
Total taxes as percent of median income: 6.6%
View Larger +
Prev
Next
#13
Coventry
Taxes for median single family home: $4,526.35
Taxes for 2010 Honda Accord: $247.50
Total: $4,773.85
Median Household Income: $69,904
Total taxes as percent of median income: 6.8%
View Larger +
Prev
Next
#12
Burrillville
Taxes for median single family home: $4,102.62
Taxes for 2010 Honda Accord: $528
Total: $4,630.62
Median Household Income: $60,666
Total taxes as percent of median income: 7.6%
View Larger +
Prev
Next
#11
Warwick
Taxes for median single family home: $4,508.97
Taxes for 2010 Honda Accord: $456.72
Total: $4,965.69
Median Household Income: $62,803.00
Total taxes as percent of median income: 7.9%
View Larger +
Prev
Next
#10
Warren
Taxes for median single family home: $4,339.48
Taxes for 2010 Honda Accord: $343.20
Total: $4,682.68
Median Household Income: $53,706
Total taxes as percent of median income: 8.7%
View Larger +
Prev
Next
#9
East Providence
Taxes for median single family home: $4,238.97
Taxes for 2010 Honda Accord: $489.72
Total: $4,728.69
Median Household Income: $51,077
Total taxes as percent of median income: 9.2%
View Larger +
Prev
Next
#8
Cranston
Taxes for median single family home: $4,878.38
Taxes for 2010 Honda Accord: $560.20
Total: $5,438.58
Median Household Income: $58,684
Total taxes as percent of median income: 9.2 %
View Larger +
Prev
Next
#7
Johnston
Taxes for median single family home: $5,039.62
Taxes for 2010 Honda Accord: $547.27
Total: $5,586.89
Median Household Income: $57,457
Total taxes as percent of median income: 9.7%
View Larger +
Prev
Next
#6
North Providence
Taxes for median single family home: $4,857.08
Taxes for 2010 Honda Accord: $553.74
Total: $5,428.82
Median Household Income: $53,470
Total taxes as percent of median income: 10.1%
View Larger +
Prev
Next
#5
West Warwick
Taxes for median single family home: $5,641.10
Taxes for 2010 Honda Accord: $375.80
Total: $6,016.90
Median Household Income: $50,138
Total taxes as percent of median income: 12 %
View Larger +
Prev
Next
#4
Providence
Taxes for median single family home: $4,183.02
Taxes for 2010 Honda Accord: $792
Total: $4,975.02
Median Household Income: $37,514
Total taxes as percent of median income: 13.2 %
View Larger +
Prev
Next
#3
Pawtucket
Taxes for median single family home: $4,756.69
Taxes for 2010 Honda Accord: $703.56
Total: $5,460.25
Median Household Income: $40,578
Total taxes as percent of median income: 13.4%
View Larger +
Prev
Next
#2
Woonsocket
Taxes for median single family home: $4,769.30
Taxes for 2010 Honda Accord: $614.85
Total: $5,384.15
Median Household Income: $35,216
Total taxes as percent of median income: 15.2%
View Larger +
Prev
Next
#1
Central Falls
Taxes for median single family home: $5,324.80
Taxes for 2010 Honda Accord: $642
Total: $5,966
Median Household Income: $28,842
Total taxes as percent of median income: 20.6%
Related Articles
Enjoy this post? Share it with others.