Stenhouse and his team used a state tax modeling tool to determine what kind of tax reforms would best suit their state. They concluded that ending the sales tax would make their state more friendly to businesses and residents, creat 20,000-25,000 more jobs and eliminate 30% of their unemployed. Nationally, it makes more sense to lower the income tax, but due to Rhode Island’s geographical location, the sales tax is a better option for them.
Their proposal has bipartisan support and is gaining more traction in the legislature than they ever thought possible. The bottom line is that no one in the state has proposed a tax reform measure that is outside the box and would institute real change. People know that this it.
Stenhouse doesn’t believe that they will get the sales tax to zero, but he thinks they can make a significant reduction and is excited to see what happens in the future.
Listen to the podcast in the player above.