SMALLEST STATE IN THE NATION HAS ONE OF THE LARGEST TAX BURDENS
PROVIDENCE
(January 20, 2016): The National Federation of Independent Business (NFIB/RI)
is reminding state residents that 10.8% of taxpayers’ earnings are earmarked
for state and local taxes in Rhode Island, making the nation’s smallest state
the eighth most tax burdensome state in the nation.
“Small
businesses certainly understand all too well just how overwhelming the tax
burden is in Rhode Island so that this ranking comes as no great shock to those
in the trenches trying to survive in this business climate,” according to
NFIB/Rhode Island state director Bill Vernon. ”While other states drive
economic improvement through lower taxes and fees, Rhode Island continues to be
a high tax, high cost state for employers and workers.”
Vernon was
referring to today’s release of State-Local Tax Burden Rankings FY 2012 by the
Tax Foundation. According to the release, a state’s tax burden is the portion
of total state income that goes to state and local taxes. To determine the
rankings, all taxes reported by the U.S. Census Bureau’s State and Local
Government Finance division, including property, sales, income and other taxes,
are included.
“Our small
business community has been paying the brunt of the state and local taxes
necessary to feed the ongoing spending problem in the state and many
municipalities. This study is just one more ranking that puts Rhode Island near
the bottom of the list of states. Whether the state can take some credit for
not being at the bottom will be determined by future rankings,” concluded
Vernon.
