News Column

RI House GOP Wants to Dump Sales Tax

Dec. 26, 2012

Philip Marcelo

House Republicans, down to just six members in 2013, are considering pushing a plan to abolish the state's 7 percent sales and use tax next year.

House Minority Leader Brian C. Newberry, R-North Smithfield, said Republicans are still researching the idea, but said the goal is to provide a "big boost" to business productivity and sales by alleviating them of the burden of administering the tax.

The sales tax -- excluding the state taxes on gas, tobacco and alcohol -- is expected to generate about $887 million in revenue for the state in the budget year ending July 1.

Newberry said lost revenue could be made up by increasing other state taxes and cutting state spending.

"If I could have a net tax cut that would involve some combination of eliminating the sales tax, cutting state spending but raising the income tax, I'd be willing to look at that," he said.

Source: (c)2012 The Providence Journal (Providence, R.I.) Distributed by MCT Information Services

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