Showdown on tax plan underway in R.I. Assembly
6:08 PM Tue, May 19, 2009 | Permalink
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The legislature's formal review of Governor Carcieri's tax priorities -- and perhaps his legacy -- played out in the Senate Finance Committee Tuesday afternoon. For several hours, the legislative panel heard testimony from administration officials, interest groups, and a Bank of Reserve economist about Carcieri's plans to cut taxes for business and high earners in the midst of the state's worst economic climate since World War II. "I think this year is a much more challenging year than perhaps we have ever seen in Rhode Island's modern history regarding budget and taxation issues," said Chamber of Commerce Coalition coordinator David R. Carlin III. "There are two fundamentally different philosophies squaring off against each other in this legislative session." Carlin joined Gary Sasse, director of the Department of Administration, in arguing that the time is right for major change, regardless of the short-term economic impact. Indeed, Carcieri's budget plans will cut taxes for corporations and some individuals, but will cost the state $16 million in the coming fiscal year and $37.5 million the year after.
"It's going to require some tough choices," Sasse said when asked about the short-term cost, urging the Assembly to muster "political courage" and "political leadership." "I think that Rhode Islanders might be disappointed by the amount of economic growth," said Robert Tannenwald, vice president vice president of the Federal Reserve Bank of Boston. "It's a gamble." Committee chairman Daniel DaPonte was among the skeptics. "The root of my skepticism comes simply from the period and time where we're at and what it's going to cost us and what we're already facing in terms of a deficit," he said. "I think it was stated and correctly, that if we were to proceed down this road, the benefits would not be immediate. That adds to my skepticism." The House Finance Committee is expected to review the same tax proposals Thursday afternoon. Carcieri is expected to address the panel personally. 
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For those of you expecting the Rhode Island General Assembly to come up with innovative and effective plans to right Rhody's economic ship I just want you to know that the Easter Bunny will be here directly! Rhode Island's GA is a MORON CONVENTION!
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The only way to create real long lasting jobs is to help businesses so they can hire back those we were forced to layoff and continue to grow so they can hire more. Union state workers filling pot holes just doesn't create anything but a filled hole. This was not the intention of the stimulus package.
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