PROVIDENCE -- A panel looking at Rhode Island's tax code has proposed as much as $130 million a year in tax relief for individuals and businesses.
The panel's final report, which was issued Monday, calls for changes in the state's individual income tax system, reductions in the corporate income tax and cuts in local property taxes.
One proposal calls for cutting the state's highest personal income tax rate to 5.5 percent.
Gov. Don Carcieri will reveal which recommendations he wants to follow when he releases his 2010 budget on Wednesday.
The panel's goal was to make Rhode Island more competitive with neighboring Massachusetts and Connecticut.
Carcieri has blamed the state's tax policies for driving away high earners and corporations -- a common perception in business community.
"If you can make Rhode Island a better place for taxes, you'll attract more companies," said David Lucier, a certified public accountant.
But critics said a recession is the wrong time to cut taxes.
"We do think it's irresponsible to do something that's only going to increase the state's deficit," said Peter Asen, of Ocean State Action.
The tax advisory group was unable to reach a consensus on what to do with the state's sales tax, and it was not included in the recommendations.
The panel, made up of 21 members, studied the state's tax system for about nine months.
NBC 10's Bill Rappleye contributed to this report.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement