Costantino praises colleagues for reduction in corporate tax
STATE HOUSE – Rep. Gregory J. Costantino (D-Dist. 44, Lincoln, Johnston, Smithfield) lauded the House of Representatives Thursday after the passage of Article 12 in the Fiscal Year 2015 budget proposal, which includes lowering the corporate tax from 9 percent to 7 percent.
“I introduced a bill in January to lower the corporate tax rate to 7 percent because I firmly believe this will create a powerful shift in our local economy,” he said. “This, coupled with the other measures we are taking with combined reporting, will dramatically improve our ability to compete in New England and on a national scale. What we are trying to do is not only attract businesses from the outside, but encourage retention and expansion of the companies that are already here. Our state’s name needs to be synonymous with the phrase ‘business-friendly,’ and I think our actions tonight will put Rhode Island well on its way to that designation.”
The state received $131.8 million of revenue from the corporate tax in Fiscal Year 2013. Despite the estimated loss in revenue from a lower tax rate, Representative Costantino says the measure is also about easing the tax burden that has been draining Rhode Island businesses of their resources.
“The current tax structure saddles our local businesses with a heavy burden, one that has anchored us to the lowest quarter of national rankings with respect to business friendliness,” the representative said. “We might take a hit next year and the year after in the general revenue column, but we must keep the big picture in mind. I realize how difficult it is to do that as our economy remains stagnant, but this is how we shield ourselves from future financial calamity. It’s about a little pain now for the big payoff later. It takes time to cultivate the type of business environment I think many of us envision for the state of Rhode Island. In the end, this will help us achieve our main goal: putting people back to work and building a productive society.”
For more information, contact:
Brenna McCabe, Publicist
State House Room 20
Providence, RI 02903