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Tax Competitiveness:
Rhode Island’s tax burden does not stack-up well against competing states. The Rhode Island business community is speaking out loudly and emphatically on this topic. The Chamber is focused on engaging the business community to protect the flat tax, capital gains tax and historic tax credit -- and demonstrate a link between these measures and Rhode Island’s ability to grow our economy.
Update:The Chamber was pleased to join Rhode Island Governor Donald Carcieri, General Assembly leaders and members of the business community to sign into law new sweeping changes to the state's income tax structure.
Most significantly, the state’s top tax rate of 9.9 percent will be reduced to 5.99 percent, bringing Rhode Island in line with neighboring states. The number of tax brackets will be reduced to three and itemized deductions will be replaced with a large standard deduction ($15,000 for those filing jointly and $7,500 for individuals).
According to the Tax Foundation, Rhode Island’s tax competitiveness standing has continued to steadily improve since 2002, when the state was ranked 49th in the country. With these new reforms, the Tax Foundation ranks Rhode Island 41st.
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Small Business:
With more than 85 percent of the member businesses having fewer than 10 employees, and more than 92 percent having less than 100 employees, the Chamber remains focused on advocating for policies that make it easier for businesses to start and grow in Rhode Island.
Update: The Chamber supported the General Assembly’s passage of comprehensive regulatory reforms recommended by the Senate Small Business Task Force. The eight -part package, which includes among other things the creation of an Office of Regulatory Reform at the Rhode Island Economic Development Corporation, the creation of a statewide master application system; a measure to expedite the licensing process; fire code reforms; and the adoption of a simultaneous review process among state agencies, was unveiled by Governor Carcieri, General Assembly leaders and the Rhode Island Economic Development Corporation to Business EXPO 2010.
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Current Legislation
Regulatory Reform - The Chamber joined Governor Donald Carcieri, General Assembly leaders and the Rhode Island Economic Development Corporation on Tuesday, May 4 for the unveiling of new legislative package and Executive Order aimed at at making it easier to do business in Rhode Island. Both the legislative package and the Executive order are the result of many months of work between the business community, the Governor's Office, the House Committee on Small Business, the Senate's Small Business Task Force, RIEDC and the Governor's Regulatory Review Task Force.
Statewide education funding formula - Click here to read the Chamber's letter of support
Update: A new education funding formual has been signed into law. The Chamber pushed for the creation of a predictable and reliable education funding formula which is connected to students, achievement and provides built-in accountability. The Chamber supported the measure citing Rhode Island’s current model for educational funding is insufficient to meet the many and diverse needs of our state’s school districts and the fact that our state had the distinction of being the only state nationwide to lack a clear model for educational funding distribution.
Deepwater Wind Pilot Project (S 2819 H 8083) - Recognizing that there needs to be role for the Public Utilities Commission in wind projects long term, the Chamber supports this proposal which would give Rhode Island the opportunity to be the first state in the country to get off shore wind and have Quonset Business Park serve as a staging area for the creation of this farm.
Update: This bill passed.
Rhode Island Industrial Recreational Building Authority (IRBA) - The Chamber supported this proposal which allows the state to guarantee up to $60 million in loans to help companies get the credit they need from financial institutions for expansion proposals.
Update: This measure was signed into law in March.
Job Creation Guaranty program The Chamber supported this measure, which establishes a $125 million Job Creation Guaranty program for growing new and existing knowledge-based businesses in order to create and retain high-wage jobs for our residents.
Update: This measure passed
RI Worker Protection & Job Loss Notification Act (H 7462) - This bill would impose very onerous obligations on large (over 75 employees) in the event the employer was forced to implement a reduction in the workforce, including extended notice requirements with strict penalties. There is an existing federal statute (the WARN Act) which applies to all employers with 100 or more employees.
Update: The measure was held for further study.
Bi-Weekly Pay (S 2727 H 7839) - The Chamber supports this.
Update: This bill did not pass.
E-verify bill (H 7296) - The Chamber testified against this bill, which would impose hiring conditions or burdens on R.I. employers, particularly in this economy. In addition it has been noted that the program has an unacceptably high error rate, particularly for naturalized citizens.
Update: The bill did not pass.
Article 7 of the FY2010 Supplemental Budget Bill - Click here to read the Chamber's letter of support for this measure which will create a debt guarantee program of up to $125 million to the Economic Development for a Job Creation Program.
Art. 3 - The Chamber has come out in support of reducing the minimum franchise tax and creating small business tax credit.
Art. 26 - The Chamber has opposed the proposed plan to shifting to the health insurers the cost of the Office of the Health Insurance Commissioner.
Click here to read the Chamber's letter of opposition.
Underground Economy - Misclassification of Workers (H 7092 S 2374) The Chamber is opposing this legislation, which would eliminate Federal IRS guidelines
For more information on how you can get involved contact the Chamber at 401.521.5000.
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