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.
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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.
Comments:
Mike Govern
10:13am on Friday, February 10, 2012
Not true. Taxes will set you free!
Bob Stanley
12:29pm on Thursday, February 23, 2012
No shock here. You cannot increase taxes and not cut spending, much less tax your way out of this mess. Time to make tough choices, lose the shelter state mentality, disability fraud, and cut spending. You cannot take care of everyone and everything. What I don't get is we are taxing one of the last industries that RI has to offer "Tourism" w/ the meals tax, tolls and fees etc. Example would be w/ the beaches; in the last 10 years look at how much it has changed for something that is literally free speaking of the sand and ocean. Yet we try and kill not only our residents, but vacationers into this state. There are plenty of other places to go that have the same offering, but the buck would stretch further. This administration simply does not get that and is only doing more harm than good with these proposals. Cutting taxes is the only way to get industry and growth in this state...