For the past two weeks, the major buzz in RI politics has been a controversial report by the Ocean State Policy Research Institute (OSPRI) that claims that rich people are leaving RI in droves, forced out by taxes, especially RI’s estate tax.
Since the release of that report, others more qualified than I am, have pointed out the numerous flaws in the report, the worst being dishonest use of statistics to back up a pre-conceived anti-tax conclusion. (For some of the best responses Click here and here and here and here). Even The Wall Street Journal thinks OSPRI is wrong.
Contrary to OSPRI’s claim that RI had a net loss of 107,000 people, 2010 Census data shows RI’s population increasing by half a percent from 2000 to 2009. RI Division of Taxation numbers show the number of high income taxpayers also increased.
OSPRI claims one proof of its anti-tax thesis is that people who left RI often moved to “red” states like Florida, Texas and Arizona where income, estate and sales taxes are lower.
Although Florida, Arizona and the like are popular retirement spots – ask Charlestown Citizens Alliance President Kallie Jurgens – the state saw other middle-income people migrate into Rhode Island from “blue” states such as Connecticut, New Jersey, Pennsylvania and Illinois. In fact, that describes about half of the membership of the Charlestown Democratic Town Committee!
Taxes play only a bit part in the question of why people move. Sure, some people like to establish residence in other states to avoid taxes. Examples abound, such as failed GOP Lieutenant Governor candidate Kerry King or GOP candidate for House District 36 James Parkin.
But generally people move for a collection of reasons, such as climate, quality of life and even tolerance. Why is it a mystery that on snowy days some people think of moving to the Sun Belt?
Housing costs also play a big role in where people choose to live. Here in Charlestown, we have few options when children grow into adulthood and want to continue living in town.
We only have 49 units of affordable housing in Charlestown. On average, you need to earn more than $70,000 a year to afford to buy.
The same problem applies to working people who retire and want to downsize. Or town workers who start families and need larger homes. The affordable, year-round rental units desperately needed just aren’t there.
And that’s the way it’s going to stay, if the CCA and the CCA-controlled Town Council and Planning Commission have their way. By controlling the amount of affordable housing in town, they effectively control who gets to live here.
Ruth Platner, head of Charlestown’s Planning Commission and one of CCA’s founders and leaders, has slammed proposed affordable rental housing as bad for the town because the children of working families will put a strain on the town’s finances. Ruth – it’s Planning, not Family Planning!
For now, unless you’re a home buyer, Charlestown’s leaders are telling you to hit the road, to Westerly or, even better, to Providence. They’d even like to give you a voucher to help you make the move. Just make sure you’re out of town by sunset.
Author: Will Collette