STATE HOUSE — With support from the Greater Providence Chamber of Commerce, Senate Minority Leader Jessica de la Cruz has introduced legislation that would establish a phased reduction of personal state income tax rates.
The legislation, found here, would reduce personal income tax rates by two percent each year for five years, beginning January 1, 2027.
It would also provide for a legislative review process to determine the fiscal impact of the phased rate reductions and to observe taxpayer behavior and economic trends.
Proponents say the reform, which has garnered bipartisan sponsorship and support, would mark a major across the board tax cut for all Rhode Islanders.
“This proposal delivers across-the-board tax relief to all Rhode Islanders and represents a true affordability agenda—both in substance and in spirit,” Laurie White, the president of the Greater Providence Chamber of Commerce, said in a release. “The tax-cut-for-all is phased in responsibility over five years and is well within the state’s normal budget tolerance.”
“If we’re serious about affordability, we have to look at both sides of the ledger. Families and small businesses aren’t just struggling with high prices — they’re also struggling with what government takes out of their paycheck,” White added. “The pace of government spending has been rapid and is unsustainable. Responsible tax relief puts money back into the local economy, where it gets spent, invested, and used to grow businesses. And when businesses grow, they hire. That’s how an affordability agenda turns into a job creation agenda.”
White applauded de la Cruz, a Republican who represents District 23 in North Smithfield, Burrillville and Glocester, and her colleagues for embracing the “affordability agenda.”
“In a small state like Rhode Island, even modest changes in tax policy can influence where businesses choose to grow,” she said. “When we become more competitive, we attract and retain the investment that leads to a vibrant economy overall.”
The post de la Cruz bill would establish phased reduction of personal income tax rates first appeared on NRI NOW.
