RIMA LEGISLATIVE UPDATE (4/8/2008)

RIMA continues to play an active role in the legislative debate at the RI General Assembly. The state's fiscal woes continue to take center stage during the legislative session. During the current fiscal year that ends on June 30, Rhode Island must close a $150 million deficit, and the projected deficit for the next fiscal year is approximately $400 million. Some legislators have responded to these figures with proposals to raise taxes, most notably legislation by Representative Arthur Handy and Senator Paul Moura entitled "The Economic Fairness Act of 2008." These bills would introduce taxes on legal and accounting services, as well as initiate a significant broadening of the state's sales tax. The legislation would also raise the capital gains tax and eliminate the flat income tax option.

Recognizing that the state's fiscal woes are best cured through spending cuts over new taxes, RIMA members initiated a significant outreach campaign to elected officials. A comprehensive letter writing effort opposing the "Fairness Act" generated over 1,000 letters to date, and RIMA continues to maintain its daily lobbying presence at the State House. All RIMA members are urged to have their employees contact their legislators and let them know that tax increases are not the solution to the state's budget problems.

The debate continues on this prohibitive tax legislation. To make sure that your manufacturing voice is heard on Smith Hill, we will need your support in several more RIMA letter writing campaigns this session. RIMA will continue to monitor this and several other tax proposals and notify you about our progress.

Please call John Grady at 401.751.0160 for further information.