Effort to Cut Corporate Taxes in Rhode Island Moves Forward

by ABC6 Chief Political Reporter Mark Curtis

mcurtis@abc6.com

Along Park Avenue in Cranston there are dozens of business, but many say their could be dozens more if Rhode Island would cut its corporate business tax from 9 to 7 percent.

That's what the governor wants.

Governor Lincoln Chafee (I-RI) said, “I'd like to see us cut our taxes and get more competitive and certainly lowering the corporate tax from 9 to 7 percent, put's us in a very competitive position.”

The idea is to create new businesses, and attract more from other states.

They could fill–up empty office spaces, and pump cash into local banks.

ABC6 Chief Political Reporter Mark Curtis said, “Initiatives such as this came from reports like this one from the National Tax Foundation. It says Rhode Island currently has the 4th worst business tax climate in America.”

The General Assembly is considering the business tax cut, but has yet to vote.

While many lawmakers want to cut taxes, some say it's not enough.

They want the state to cut business regulations and speed up permitting.

State Rep. Joe Trillo (R-RI) said, “I talked to two developers just on the last week that told me it's taking three and four years to get the permits in place, to do multimillion dollar developments. So much so that one gave up.”

CVS, one of the state's largest companies, supports cutting the corporate tax. But it opposes the Governor's plan to eliminate business tax credits that save CVS 15 million dollars per year.