NEW: Conservative Think Tank Predicts Chafee Taxes will Cost 1,400 Jobs
Thursday, February 09, 2012
The Rhode Island Center for Freedom and Prosperity released a Tax Policy Analysis today that demonstrates the specific negative consequences that would be caused if the Governor's recently proposed tax & fee hikes were to be implemented.
Utilizing RI-STAMP, the Center's new state tax analysis & modeling program, the effects of the proposed $95 million in new taxes and fees on the Rhode Island economy are projected:
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The expected total revenue increases of $95 million are not attained ... as tax increases depress overall economic activity ... the state will see only a $35 million increase in revenues.
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Over 1400 private sector jobs will be loss.
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Municipalities will lose $9.75 million in revenues due to lower commercial property taxes, also as a consequence of lower economic activity
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The State will lose almost 1% in overall Gross State Product
- Investment in the State will drop by $27 million
"It is not good policy to further weaken our economy and cause our state to become even less competitive, in name of balancing the budget", said Mike Stenhouse, CEO for the Center. "Perhaps we should have a different goal ... like growing the economy and creating jobs", Stenhouse suggested.
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A detailed table and additional information about this economic analysis and RI-STAMP can be found at the RI Center for Freedom website.
