As in past years, the 2025 legislative session seems to focus on the state’s growing revenue gap and whether tax hikes will be on the table. Lawmakers seem to indicate nothing is off the table yet as they desperately seek to tackle budgetary shortfalls.

Some labor activists are making a push for legislation that creates additional tax brackets for “higher income” earners. Unfortunately, “higher income” includes pass-through entity small businesses like S corps, partnerships, and LLCs that would also face higher taxes too. Any change to Rhode Island’s income tax structure means smaller businesses will be subjected to higher taxes as the vast majority of small businesses are organized as pass-throughs for tax purposes. These proposals will not just target wealthy earners are proponents claim but will harm Main Street businesses like you.

As these tax proposals begin to advance through the legislative process, NFIB will provide comments in opposition and will send you additional information so that you may contact your lawmakers.

Additionally, the proposals raising the state minimum wage are said to be gaining traction behind the scenes as lawmakers have an appetite to raise the base wage. NFIB provided testimony in opposition raising the state minimum wage to as high as $22 per hour last month and urged legislators to oppose these proposals that will have a negative impact on small businesses. We ask that you take a moment and contact your lawmakers also urging they oppose any minimum wage hikes this session: Take Action