ITEP Testimony on Proposed Rhode Island Tax Changes Before the Rhode Island Senate Select Committee
reportThe proposal being considered, to create an alternative flat-rate income tax of 5.75 percent of Federal Adjusted Gross Income, with an exclusion for capital gains income for assets held more than five years, would be a significant tax cut targeted exclusively to the wealthiest people in Rhode Island. Ninety-eight percent of the benefits of this tax cut would go to the highest income one percent of Rhode Islanders, who have an average annual income of $642,000. The average tax cut for this group would be $7,900. The vast majority of the people of Rhode Island would see no reduction in their taxes as a result of this proposal.