The Ocean State is missing the boat by failing to enact combined reporting and decoupling from the federal “domestic production deduction” corporate tax break.
Over the past decade, Rhode Island has given up hundreds of millions of dollars in revenue through a variety of tax breaks and giveaways of questionable value to the economy. Even before the economic downturn, the state was struggling to maintain adequate funding for vital public services like education, infrastructure, and health care.
To grow our state’s economy and help families weather the economic storm, Rhode Island must keep investing in the services that people and businesses rely on. This will require state leaders to take a balanced approach to solving our financial problems, rather than relying on a cuts-only strategy that will further damage the fragile economy. That means making sure each dollar we spend is a wise, efficient investment. It also means carefully reviewing our state revenue policies. As Rhode Island faces one of the worst fiscal crises in history, we must consider not only what we spend but also what we give away.