Whether or Not to Reduce/Eliminate Sales Tax in Rhode Island

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January 9, 2013BusinessNo comments

Lawmakers desire that Rhode Island should be counted among leading business friendly economies. A consumer group has come with a solution to the above said problem i.e. elimination of sales tax completely. Though it is a striking idea but is absurd undoubtedly.

Rhode IslandAt Twin Oaks, there is a tax on all the sales totaling it to nearly 8 percent including meals tax, sales tax.

Sue DeAngelus-Valles (Owner of Twin Oaks) said that they send 7000 to 8000 dollars being spent by Twin Oaks as sales tax to the respective state. She further added the motive behind giving sales tax to the state. She is of the view that the state would help her business significantly. This is because she doubts on how the state would move forward.

The major part in the news is that there is other group who possess same belief that reducing sales tax can take the state into a good position.

Further view of Mike Stenhouse (CEO at Rhode Island Center for freedom and prosperity) is taken. According to him – they need to view about several incentives and disincentives to make the country a good competitor with their neighbors. He added they have such kind of thoughts and they need to think beyond budget.

Mike Stenhouse is of similar opinion to reduce sales tax in the state. He said that losses coming out of sales tax could be balanced well by businesses development to be followed. Immediately Mr. Stenhouse has given out examples of existing and the upcoming retails stores in the state. He is of the view that the current retails stores would experience profit and there are new retail stores to come up. In fact, he pointed his ideas towards some bigger warehouses or industries that might desire to come to the state then. Even he informed that there is a probability that legislators would never consider the thing but facts are supporting him.

Mike Stenhouse then took his focus directly towards New Hampshire. He pointed towards the facts stating that millions of retail businesses that had been lost from Vermont and Maine to New Hampshire which is without a single penny of sales tax. Basically, New Hampshire paved the way for such business outlets to the state in order to increase its productivity. The main focal point of Stenhouse to sate the facts is that they can also follow similar concept in their state so that Rhode Island gains a good name as New Hampshire.

Few Republican lawmakers in the state are of the viewpoint that reduction or elimination of sales tax completely can be taken as a first step towards turning the luck of Rhode Island.

As per the news, it can be said that most of the groups in Rhode Island are supporting idea of eliminating or reducing sales tax. Despite the fact, ultimate decision lies in the hands of General Assembly and they are not convinced on the idea. The whole concept can be changed only with forceful political pressure.