April 1, 2009
Providence Journal Features Tax Foundation Analysis on Tax Proposals in Rhode Island
"Carcieri Tax Plan Would Improve Rhode Island Business Climate, Tax Foundation Says"
By Neil Downing
Rhode Island's tax climate for business would improve significantly if the state were to adopt tax changes proposed by Governor Carcieri in March, according to an analysis by the Tax Foundation, which monitors fiscal policy at the federal, state and local levels.
The group ranks state business climates based on the extent to which their tax systems encourage investment by maintaining a broad tax base and low tax rates. In general, states that rank closest to 1 have the most favorable tax climates for business and states that rank close to 50 have the worst.
Rhode Island currently ranks 46th among the states. It ranked 49th last year, 50th the year before. But if the changes that Carcieri proposed in March were enacted and all made effective for 2009, Rhode Island's ranking would be 16th nationwide, according to the analysis issued Friday by the Tax Foundation.
