The Poverty Institute: A 21st Century Sales Tax Why Governor Chafee’s plan to modernize the sales tax is necessary
ITEP Work in ActionRhode Island must modernize its antiquated sales tax in order to maintain investments in public services that improve our quality of life, protect our families and businesses, and help grow our economy. Today, we have one of the most narrow sales tax bases in the country, and our collections from this important source of revenue are well below the national average.
The Governor’s proposal to broaden the sales tax base and lower the rate is a logical and necessary response to a changing economy and shifting consumption patterns.