What would the economic impact be if RI had a 0.0% sales tax?

Quick Links: Alternative Sales Tax Cut ScenariosView the 2013 Zero.Zero Report here; Report Card on RI Competitiveness;  About the RI-STAMP economic modeling tool

See Testimony at Special Joint Legislative Commission to study repeal:  http://ricaptv.discovervideo.com/show/watch?id=702&t=1

Media Coverage: New Report Says Sales Tax Repeal Only a $105 Million Problem (GoLocalProv); Sales Tax bill Top-3 Most Important in 2013 (GoLocalProv); 0.0% Featured in American Spectator article; Representative Jan Malik discusses his related bill on Capitol TV; ProJo Article (Jan ’13) ; Help the poor by cutting the sales tax (Cranston Herald); Corporate or Sales Tax Cut? (GoLocal Prov).

In January of 2013,  Massachusett’s Governor, Deval Patrick, proposed cutting the Bay State sales tax from 6.5% to 4.5%. While the idea never gained traction, this potential devastating blow to Rhode Island’s already fragile economy spurred a renewed debate about the sales tax in the Ocean State.

All Rhode Islanders hope to support themselves and their families; and they expect their government to foster an environment where there are enough good-paying job opportunities so that they can choose which is best to provide for their current and long-term security.

Unfortunately, many hard-working Rhode Islanders have given up that hope.

Poor pubic policy decisions over the decades have steadily eroded the Ocean State’s economy, driving people, businesses, and jobs away, while those fortunate enough to have a job have seen their disposable incomes and quality of life drastically reduced via one of the nation’s highest state and local tax burdens.

Consider Interstate I-95. Can you see the U-Haul trucks packed with the personal belongings of Rhode Island families who are leaving Rhode Island, forced to look for a better life in another state?

Now imagine I-95 with jammed with 18-wheelers and family cars with luggage tied to the roof heading INTO Rhode Island, bringing new businesses and big construction projects, new retail and service jobs, and most importantly a new sense of optimism for the state.

Can this vision of renewal actually be achieved in the Ocean State? Yes; but we have to more than just hope for change. Citizens and taxpayers must demand that their government take the necessary proactive, pro-growth steps.

75-38-400  or  68-0.0-5000 ?

For little more than the $75 million the state wasted on 38 Studios chasing only 400 jobs, first year budget cuts of $105 million to pay for Zero.Zero could put the state on a path to produce 25,000 jobs!

Even phasing out the sales tax over 4 years, would produce more than 5000 jobs per year.

Reboot

In our current, corrupt operational system, Rhode Island is frozen in the tax-and-spend mode promoted by  special interest groups. A HARD REBOOT IS REQUIRED. This system must be wiped clean  and replaced with a new, pro-business operating platform. Economic growth, jobs, and renewed opportunity will follow.

Economic Viruses

The high taxes imposed to sustain the massive entitlement and redistribution programs in Rhode Island are a virus to our economy … infections that corrupt the productive flow of capital and that delete many of the incentives necessary for robust, free-market productivity. Like your computer, these viruses must be purged to restore performance.

The “retail sales tax” is one of the most malicious viruses infecting the Rhode Island economy. Removing it is one of the most immediate and effective ways to restore vitality to the state’s economy.

Economic Impact

A Zero.Zero% sales tax would provide the following benefits:

  1. Hundreds of millions of dollars would be put back into the state economy
  2. Tens of thousands of jobs would be created
  3. Municipalities would collectively realize a windfall of tens or hundreds of millions of dollars
  4. Gross Domestic (State) Product would increase by “Billions” of dollars
  5. State population, and the state tax base, will be increased by thousands of people
  6. State Revenue losses would be less than static expectations, due to the positive and “dynamic” economic impact that would be realized

What this means is that once again YOU can be in charge of YOUR life:

A) Imagine a feeling of true job security knowing that job opportunities are on the rise

B) Consider how would you spend increased disposable income as a result of a better job?

C) Enjoy new-found quality time to spend with your family and with your friends

Related Stories:

Dire RI Teen Employment Situation Worsened by Minimum Wage Hike … Zero.Zero can provide more jobs!

RI Employment Picture Pales Compared with Massachusetts

Media Coverage:

Providence Business News: Report: Eliminating sales tax could foster job growth

GoLocalProv:    Group claims eliminating sales tax would create thousands of jobs