It has
been the long-held position of NFIB/RI that perhaps the quickest, simplest way
to lower the tax burden for small
businesses and improve the Rhode Island business climate would be to repeal the
state’s $500 Minimum Business Corporation Tax imposed on all LLCs,
S-corps and other similar small businesses whether or not the entity shows a
profit. The repeal of the Minimum
Business Corporation Tax will send an important signal to Rhode Island’s small
businesses and entrepreneurs during these difficult economic times to
improve fairness in the tax code and improve the business climate. The Minimum Business
Corporation tax is unfair to struggling business enterprises, discourages new
enterprises and entrepreneurs, and has a disproportionate negative impact on
small businesses.
Since small entrepreneurial businesses are the principle creator of
new jobs and the driver of economic growth in Rhode Island, it makes sense to
encourage new growth and entrepreneurship by eliminating this unfair tax.
