Progressives
had mixed reactions to the budget bill passed by the House Judiciary Committee
late Thursday night, expressing disappointment with the lack of focus on the
revenue side of the ledger.
While there are few new cuts in this year’s
spending proposal, and a few restorations, it didn’t include tax-the-rich
revenue enhancers that organized labor and community activists lobbied for all
session long.
“If
this budget is passed as is, the wealthiest Rhode Islanders will skate by again
while lower and middle-income Rhode Islanders get stuck with the bill,” said George Nee , president of the AFL-CIO who took an
active role with Working RI , a group that led the charge for taxing
the rich.
While
legislative leadership and the local media widely predicted income tax equity
reform wouldn’t pass this year, the fight isn’t over yet. Progressive
lawmakers are expected to offer an income tax amendment to the budget bill when
it hits the House floor next week.
Rep. Maria Cimini, a progressive Democrat
from the Elmhust area of Providence ,
led the charge in the House this year, could be the one to offer the amendment.
She’s a rising star to the liberal left and an increasing thorn-in-the-side of
the more moderate House leadership.
Her
bill would have raised the income tax rate on those who make more than $250,000
from 5.99 percent to 9.99 percent, what the rate was before former Gov. Don
Carcieri cut taxes to the rich. It also included a job creator incentive that
would have lowered the proposed increase by 1 percent for every 1 percent the
state’ unemployment rate dropped.
But
Rep. Larry Valencia , a progressive
Democrat from Richmond [and Charlestown] ,
also could offer the amendment. He sponsored a similar bill for the second
consecutive year that doesn’t include the job creator incentive, which he said
would make the budget more volatile.
“You
can tell by the kinds of bills I’ve introduced that I would have preferred some
changes to a more progressive tax code,” Valencia said, right after voting for
the bill Thursday night. While he was hoping for income tax reform, he said he
was happy it included some new sales taxes and glad it didn’t increase the
meals and hotel tax – which would have hurt the the local tourism economy, one
of the state’s strongest sectors.
Rep.
Scott Guthrie, a populist Democrat from Coventry ,
has sponsored several income tax reform bills during the past two sessions also
could offer an amendment.
House
leadership has communicated to progressive legislators that it doesn’t want an
amendment to come up on the floor. Income tax reform is expected to be used as
a campaign issue this summer and fall, as voters seem to support it more than
politicians.
A Flemming Associates poll showed that 68 percent of Rhode
Islanders support a more progressive income tax code, and many conservative
legislators don’t want to be put on the record as supporting tax breaks for the
wealthy.