SPEAKERS BUDGET SPARKS HOPE WITHIN SMALL BUSINESS COMMUNITY
(PROVIDENCE) June 8, 2016: In response to Speaker Nicholas Mattiello’s budget which was released today, the following statement may be attributed to Bill Vernon, National Federation of Independent Business (NFIB) Rhode Island state director:
First, no new taxes in a northeast state should be considered a significant accomplishment. Small businesses are pleased that the proposed FY17 state budget contains no new broad-based tax increases. In addition, the unemployment insurance reforms outlined today are sorely needed and welcomed by the small business community. Currently, Rhode Island has the highest unemployment insurance (UI) rates in the country – more than $200 per employee, per year higher than Massachusetts. UI taxes are paid by employers and are a large outlier for Rhode Island’s business climate. We are also pleased that the budget recognizes that increasing the earned income tax credit is more effective and more efficient than minimum wage increases in getting much needed financial support to low wage family bread winners. Small business owners appreciate the cost stability afforded by avoiding a fifth consecutive year with a minimum wage increase.
Finally, the reduction in the minimum business corporation tax from $450 to $400 is another step toward eliminating one of the most disliked taxes on the books. The tax is due whether the business profits or fails to generate revenue and disproportionately impacts small businesses and startups. These types of taxes discourage entrepreneurship and job creation and reducing it is welcome news to existing small employers as well as those considering beginning a business of their own.
