Economic Progress Institute: Hundreds of Millions in Lost Revenue: The Cost of Rhode Island’s Personal Income Tax Changes

The findings demonstrate that tax changes over the past two decades—including the introduction and reduction of the flat tax and the shift from a five-bracket system with a top rate of 9.90 percent to today’s three-bracket system with a top rate of 5.99 percent—have disproportionately benefited the highest-income filers while steadily draining state revenue. The report concludes that these changes have likely cost Rhode Island billions of dollars over time, limiting the state’s ability to invest in healthcare, childcare, public transit, education, and other programs that strengthen economic stability and quality of life.

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