Senator James C. Sheehan (D-Dist. 36, Narragansett, North Kingstown) is sponsoring legislation in the Senate this session to reduce Rhode Island’s corporate tax rate from its current 9 percent to 7 percent.
“As we move forward with the work that’s already been started by the legislature to improve Rhode Island’s business climate, and our state’s overall economic health, we need to make some bold moves,” said Sen. Sheehan. “We need to be competitive with nearby states, we need to be attractive to businesses that want to locate here and stay here and grow. We need to provide a compelling reason that Rhode Island is a good state for business. Reducing the corporate tax rate is a significant way to improve our business climate.”
Sen. Sheehan said his legislation calls for an outright cut of the tax rate from 9 to 7, unlike a plan announced last week by the governor which would hinge a corporate tax rate reduction to Congressional action to allow the state to collect taxes on online purchases.
“We need to be fixing Rhode Island now, not waiting to see if gridlock ends in D.C. and we are allowed to act,” Sheehan said. “Improving business in Rhode Island, creating more, new, good-paying jobs for Rhode Islanders is a matter of urgency. We can’t afford to wait or delay taking action.”
The Sheehan bill, 2014-S 2075, has been referred to the Senate Committee on Finance. Co-sponsors include Sen. Roger A. Picard (D-Dist. 20, Woonsocket, Cumberland), Sen. Frank S. Lombardi (D-Dist. 26, Cranston), Sen. V. Susan Sosnowski (D-Dist. 37, New Shoreham, South Kingstown) and Sen. Michael J. McCaffrey (D-Dist. 29, Warwick).
Currently the highest in New England
at 9 percent, reducing the rate to 7 percent would immediately make Rhode
Island the lowest of the five states.