Elimination of the Sales Tax would be a boon for all of RI. Of course the unions and affected state workers will all cry FOUL to Speaker Fox and Paiva-Weed. Overall it is possible, one only has to look north to Hew Hampshire.
New Hampshire is one of the few states with no statewide sales tax. There are several specific taxes levied on particular services or products. These excises include a 9% tax on restaurants and prepared food consumed on-premesis, a 9% tax on room and car rentals, and a 7% tax on telecommunications services.
After 16 straight years of Republican governors we get this pathetic swill from the rump half dozen?
I'll be impressed when they tell us the $400+ million in CUTS they want to make to allow it.
Other than the Clintonian "cuts to the state's services".
As for New Hampshire State Sales Tax besides the 9% tax you reported there is also 55 cents per megawatt hour on electricity and as you reported the 7% on telecommunication services there is also additional taxes on real estate transfers and alcohol.
New Hampshire State income tax is limited to a 5% tax on dividends and interest income of more than $2,400 ($4,800 for joint filers).
A family member of mine moved from Massachusetts to New Hampshire for retirement and has indicated to me his property tax is staggeringly higher than what he was paying in MA.
Get rid of the sales tax and income tax and you have to make up the money from other sources.
Autistic Commenter Ken - State revenue generation is not a zero sum equation. Some sources are more efficient than others, and the sources can have an impact on the budgeting process. New Hampshire realized some time ago that it is much easier to compete for business through sales tax and income tax than on property tax. Their government is also smaller and requires less total revenue. Rhode Island should look to them as a model. Please don't respond with a bunch of boring statistics about Hawaii - I don't care.
You got Hawaii on the brain????? DAN you seen to becoming Autistic on us!!! LOL
If so do I have some excellent news about $14B dollars and 4.8% unemployment rate!!!
If you go back and review my post above you will see I only mentioned New Hampshire and Massachusetts not Hawaii.
However if you want me to talk about Hawaii I’ll gladly do it since YOU brought up the subject!!!!
Get rid of the sales tax,it would be a Godsend. Think of how great it would be for us and the people of Ma. nearby and Ct. It would be a real public service.
Business would boom. It would be fantastic!
We should also look into how much compensation the members of the New Hampshire State legislature recieve. I've read that they only get around $500 per year plus travel expenses to and from the state house.
How much do our members get?
About $12k a year plus health insurance. I think it should be 100% unpaid. Make them truly public servants.
Wow,Patrick,I didn't know it was that much!
You might be onto something very good when you say they should be 100% unpaid. I've had thoughts like that before that I've kept to myself.
Do you think it's too idealistic an idea to ever become real?
There's no need to -eliminate- it. Just simplify it so that any good that crosses a counter (or a dining room table, or a gas nozzle, or a liquor store counter) is taxed at a flat rate lower than our neighbors. This is easily achievable with a rate at something like 4%.
If we did that, then we'd attract a fair amount of retail and storefront activity, which would help bolster local tax revenues. It would also make compliance much simpler, since there would be no 'grey zone' of things that should or shouldn't be exempted, there would be no need to tax some 'services', and all the cash registers would just add 4% to everything.
Interestingly, most national Republicans seem to favor a BIGGER sales tax in order to reduce the income tax, the 'fair tax' plan does this.
There needs to be some coherence to the RI Republican plan here... You can't just be against EVERY tax that you see.