RI Lawmakers Propose Tax Increase For Income Over $500k

PROVIDENCE, RI — Two lawmakers are calling for a new, high-income tax bracket to support education in Rhode Island. Senator Ryan Pearson and Rep. Gregg Amore plan to introduce a bill Tuesday that would raise the 5.99 percent rate for income earned over $500,000 by one percent.

If approved, the revenue generated by the increased taxes would go towards funding public education for kindergarten through grade 12. Rhode Island residents who make less than $500,000 would not be affected at all by the legislation.

"During the last session, the House and Senate came together to enact substantial reforms to our education system here in Rhode Island," Amore said. "2020 is a year to ensure full implementation of these efforts which will require a commitment of resources. Our proposal today is one that is measured ensuring we have the dollars needed to invest in our education system while preserving our tax competitiveness."

Senator Pearson said that investing in public education "is of paramount importance" for both students and the state's economy.

"We know that a well educated and talented workforce will continue to be the key for Rhode Island’s success," Pearson said. "By asking the top one percent of earners in Rhode Island to contribute one percent more we can add resources to ensure all Rhode Islanders have the opportunity to get a good education."

Gary Sasse, the director of the Hassenfeld Institute for Public Leadership, said he did not believe the proposed tax increase would be a problem for the state.

"Modestly increasing Rhode Island’s top marginal income tax rate by one percent for incomes over $500,000 — the top one percent of Rhode Islanders — should not have a negative impact on the state’s economic competitiveness," Sasse said. "This proposal would result in a fairer tax system that provides urgently-needed resources to our underperforming schools, encouraging economic growth and opportunity."