According to a report published on Tuesday by the Tax Foundation, a non-profit, non-partisan tax research organization based in Washington, D.C., Rhode Island ranks as one of the least business friendly states in the country.
Specifically, Rhode Island placed 46 out of 50, beating only Vermont, California, New Jersey and New York, which was ranked as the worst business friendly state in the country.
"Even in our global economy, a state’s strongest and most immediate competition often comes from other states,” said Tax Foundation economist Scott Drenkard. “State lawmakers need to be aware of how their states’ business climates match up to their immediate neighbors and to other states in their region.”
Rhode Island maintains a nine percent flat corporate tax rate, which the foundation claims is the sixth highest nationally.
For personal income taxes, Rhode Island scores even worse. The personal income tax top rate of 5.99 percent is the third highest nationally, according to the organization.
To put it in perspective, last year Rhode Island taxpayers worked until April 15 to pay their total tax bill.
Some say it’s a tough call: Should local lawmakers lower corporate tax rates to encourage new businesses and jobs? Or do you think we should encourage and promote companies in other ways so we can collect the tax revenue to support services?