RIPEC Warns Income Tax Hike in RI Could Have Negative Economic Consequences

The Rhode Island Public Expenditure Council (RIPEC) today released a policy brief analyzing proposed legislation that would sharply raise the state’s top income tax rate from 5.99% to 8.99% on income above around $625,000. The proposed 50% increase—targeting the state’s highest earners—would risk negative long-term consequences for state revenues and the economy, threatening business growth, philanthropic activity, and other tax payments associated with the state’s higher income taxpayers, according to