SALES TAX REFORM in the Ocean State

A 3% Sales Tax – the Complete Solution

Major sales tax reform is no longer just an interesting idea, it has evolved into a complete solution. Ample research from the Center along with overwhelmingly supportive public testimony from the 2013 special Commission hearings, combined with credible new spending savings and budget management ideas, means that Rhode Island can now consider a complete well-thought-out solution as the best way to provide a much-needed boost to grow our economy and to create jobs. The complete 3% solution, encapsulated in an info-graphic (below) today, includes eight components:
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  1. Acknowledgement of the indisputable need for economic reform (see Report Card on RI Competitiveness)
  2. Political awareness that the 3% solution impact is the “right-sized” policy idea for current circumstances (see report on Alternative Tax Scenarios)
  3. An update of the positive benefits in projected jobs and economic benefits (see 2014 projections)
  4. Review of empirical data from other states (see How Do Other States Do It report)
  5. Overwhelming support from the public — citizens and small businesses (see Testimony Highlights from 2013 sales tax Commission hearings)
  6. A “fiscal note” that projects budget and revenue effects of the policy (see explanation of dynamic revenue effect)
  7. Recommendations for budget savings in non-vital line items (see Spotlight On $pending report)
  8. Budget management tools (see Sales Tax Budget Management Tools, and point-8 in Complete Solution info-graphic below)

completesolution-explanation

 

Endorsement from Grover Norquist and Americans for Tax Reform …