NEW: Chamber Slams Chafee Budget Proposal

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Thursday, March 24, 2011

GoLocalProv Business Team

Leading with its opposition to Governor Lincoln Chafee’s expansion of the sales tax, the Greater Providence Chamber of Commerce found little to like about the governor’s proposed budget for fiscal year 2012.

The Chamber said of the sales tax, “We believe that the proposed $165 million tax increase would only depress spending activity in what is already a sluggish economic recovery for the state. It would also apply onerous regulatory burdens on the state’s small business community. “

The Chamber said the two-level system is so complex it could increase the cost of doing business.

Citing continuing high unemployment in Rhode Island the Chamber said it “does not feel that now is right time to eliminate the job development tax and at the same time introduce combined reporting. Large multi-state employers are critical players in our economy and as these large employers shrink, the impact on Rhode Island’s economy will no doubt be profound.” The Chamber says that the budget proposal fails to attack the underlying causes of structural deficits, “specifically spending.”

The group cited the corporate income tax rate reduction and reform of the minimum franchise tax as budget proposal items that the Chamber does endorse.

The Chamber said they “reached their position after much consideration by its Board of Directors and outreach to our diverse membership base,” and urged Governor Chafee and the General Assembly “to work together in their effort in finding meaningful and permanent solutions to closing the budget deficits and on finding new and innovative ways to grow the Rhode Island economy. "