Letter: Consider a ‘tax holiday’ to help state and businesses

Posted 4/22/21

There exists in Bristol a pithy expression of truth: “What happens after the Fourth of July Parade?” The answer is “Winter.”

Each year Rhode Island …

This item is available in full to subscribers.

Please log in to continue

Log in

Not a subscriber?


Start a Subscription

Sign up to start a subscription today! Click here to see your options.

Purchase a day pass

Purchase 24 hours of website access for $2. Click here to continue

Day pass subscribers

Are you a day pass subscriber who needs to log in? Click here to continue.


Letter: Consider a ‘tax holiday’ to help state and businesses

Posted

There exists in Bristol a pithy expression of truth: “What happens after the Fourth of July Parade?” The answer is “Winter.”

Each year Rhode Island people and businesses make preparations after the Fourth of July Parade for a large percentage of retirees departing for tax-efficient states in the south where they are legally resident. These people in their working lives had been in employed in State of Rhode Island businesses and government and now receive pensions from these entities. By being resident in these southern states, they are taxed at lower rates than those who are resident in this state and also receive the benefit of reduced taxes on their investment income.

For six months and one day, local businesses and the state government lose the benefit with this annual migration. Businesses, especially those concerned with providing services, such as restaurants, and contractors are particularly affected. The State loses the taxes that could have been obtained from these businesses.

This state needs to be tax friendly to these people and encourage them to be legal residents in this state for more than six months. Raising the tax burden on residents only encourages people to move to tax friendly states.

If the state could extend a ‘tax holiday’ to encourage those who migrate south each year to remain here longer may eliminate the need to raise personal taxes in this state. The state could follow the tax efficient southern states and reduce personal taxes or only tax individuals who reside in this state after residency of, for example, eight months.

Noel Hewitt
Bristol

2021 by East Bay Newspapers

Barrington · Bristol · East Providence · Little Compton · Portsmouth · Tiverton · Warren · Westport
Meet our staff
Mike Rego

Mike Rego has worked at East Bay Newspapers since 2001, helping the company launch The Westport Shorelines. He soon after became a Sports Editor, spending the next 10-plus years in that role before taking over as editor of The East Providence Post in February of 2012. To contact Mike about The Post or to submit information, suggest story ideas or photo opportunities, etc. in East Providence, email mrego@eastbaymediagroup.com.