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1/22/2026
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Op-Ed: Why taxing Rhode Island’s 1% is the right move, right now
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By Rep. Karen Alzate and Sen. Melissa Murray
Rhode Island’s affordability crisis did not appear overnight. Housing costs are rising faster than wages, childcare is unaffordable for many families, and businesses are struggling to retain workers who can no longer afford to live here. If we want Rhode Island to remain a place where people can live, work, and invest, we need a revenue solution that matches the scale of the problem. Taxing the wealthiest 1% of Rhode Islanders does exactly that.
This proposal is not new. For several years, we have been working alongside advocates, economists, and community leaders to modernize Rhode Island’s tax structure. We have long known that our state relies too heavily on middle- and working-class families while asking relatively little of those at the very top. The data has been clear for years and the urgency is undeniable.
In Rhode Island, the top 1% begins at roughly $640,000 in annual income, representing only about 5,000 households. A modest surcharge of 3% on income above that threshold would raise an estimated $200 million each year. That is significantly more revenue than a traditional “millionaires’ tax,” which applies to far fewer households and produces less funding overall. If our goal is to make meaningful investments in affordability, the 1% tax simply does more.
The revenue generated from our proposal could be used to expand affordable housing, restore and grow public transit, invest in childcare and education, and strengthen the workforce —investments that benefit families and employers alike. These are the building blocks of a competitive economy.
Rhode Island would not be acting alone. Massachusetts and other states have already implemented similar tax structures on high earners to fund education, housing, and infrastructure.
The gimmick of trickle-down economics that billionaires and big corporations have tried to sell us for decades has never come to fruition. The myth of “millionaire flight” has been disproven. The result of taxing high earners in other states has not resulted in economic decline; it has created stronger, more resilient states. The data is clear, the need is urgent and the moment is now. If Rhode Island wants an affordable future, taxing the 1% is the responsible path forward.
Rep. Karen Alzate, a Democrat, represents District 60 in Pawtucket and Central Falls. Sen. Melissa Murray, a Democrat, represents District 24 in Woonsocket and North Smithfield.
For more information, contact:
Andrew Caruolo, Publicist
State House Room 20
Providence, RI 02903
(401)222-6124
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