NFIB remains reasonably confident the FY 2015 state budget will contain significant tax relief for the business community. Speaker Mattiello continues to focus on the corporate tax rate (9% to 7%) and the estate tax – eliminate the “cliff” and increase the exemption. Currently, decedents in Rhode Island pay a tax if their estates exceed $924,000 and they pay the tax on the entire estate. NFIB has long advocated for the imposition of a true exemption – a tax only on that portion of the estate exceeding the exempt amount – and a higher exemption which is at least competitive with MA ($1 million) and CT ($2 million). Other small business taxes like the personal income tax, the sales tax, and the minimum business tax seem less likely in 2014.
Speaker Mattiello continues to emphasize that it is imperative that Rhode Island change and that policies to encourage economic growth and to support job creation must be on the front burner.