Tax Foundation slams Chafee budget’s proposed tax, fee hikes
February 1st, 2012 at 5:03 pm by Ted Nesi under Nesi's Notes, On the Main Site
Not a big surprise, but The Tax Foundation’s Scott Drenkard is less than impressed with how Governor Chafee “cobble[d] together” $93 million or so in tax hikes and fee increases “from arbitrary places”:
These sorts of budget proposals highlight the need for fundamental tax reform. They go against the principle of neutrality, which states that governments should not construct taxes that preference one industry over another. While Chafee’s budget has some elements of base-broadening, there is no effort to lower rates accordingly, and the base-broadening essentially just snipes off specific industries like taxis or car washes and taxes them because they are politically expedient.
If you must raise taxes, raise them on everyone, don’t pick and choose winners through the tax code.
In Chafee’s defense, he tried to broaden and lower Rhode Island’s 7% sales tax last year – although his proposal wasn’t revenue-neutral – and says he still favors doing so; lawmakers, however, aren’t interested. Nor will The Tax Foundation’s comments sway many on Rhode Island’s left, for whom the organization is a bête noire.
Tags: fy13, lincoln chafee, state government, tax foundation, taxes
Nesi's Notes covers politics and the economy in and around Rhode Island for WPRI.com. (Twitter: 
Taxes need to be lower and constricted. Spending has to be reduced and constricted also. Cut all social services and public employee pay and benefits. No more sharing the sacrifice, the taxpayers have been bent over for too long.
Time for a taxpayer revolt.
The industry we pride ourselves on is tourism and our restaurants. Gov “never had to operate a business” Chafee doesn’t appear to understand the basic business principal of marginal profits.
Talk to any restaurant owner and they will tell you where real marginal profits reside which are appetizers, deserts, drinks. These are the items that keep a restaurant from closing its doors. Hike the prices and less of these profitable products are sold. The restaurant still has to carry the same overhead costs, but sells less of the profitable products.
This is what happens when we elect a governor who has gotten all his money from the lucky sperm club and hasn’t a clue how business and employment actually works.
I don’t know if Gov. Chafee or many in the General Assembly have the capacity to hear ordinary citizens, but we are saying clearly that we want NO tax increases of any kind and want the government to reduce spending.
There are plenty of areas to cut and plenty of people to advance spending reduction proposals.
Now that you have driven all big business out of R.I. now you want to get the little Car Wash.folks. Out of control taxes,crazy sewer and water bills,testing the Narragansett Bay Comission now Chaffee. My business is near the Massachuttes boarder how do I compete with this Mr Govenor. How about you cut spending and not try to put who ever is left in business out of business.PLEASE DO NOT TAX CAR WASHES. Lou 25 year car wash owner.