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A campaign to raise much-needed revenue for Rhode Island by ensuring the top 1% of earners contribute their fair share.

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A campaign to raise much-needed revenue for Rhode Island by ensuring the top 1% of earners contribute their fair share.

Watch our video explaining the problem. And our solution.

Our Proposal

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  • We propose raising revenue for Rhode Island by adding one new tax bracket for the top 1% of earners – at a marginal rate of 8.99% (in place of the current top rate of 5.99%) on income above $475,000.
  • The average adjusted gross income for those impacted is $1 million dollars per year.
  • This proposal will have no effect on Rhode Islanders outside of the top 1% (those who earn less than $475,000 will see no change in their tax rate.)
  • This proposal impacts approximately 5,000 tax filers.
  • This proposal will generate an estimated $128.2 million in new revenues.

These revenues can be used for:

Schools and our children’s education

Infrastructure improvements (roads and bridges)

Increased state funding to cities and towns, and potentially lower property taxes

Programs for our elderly residents, individuals with developmental disabilities and those who care for them.

Increased funding for our Veterans Home

And much more!

This proposal will only impact the top 1% of earners (and only applies to income above $475,000.)

*These examples use RI’s 2021 tax brackets; the inflation-adjusted brackets for 2022 will likely make the above estimates slightly high.

This proposal will ensure the top 1% pays a percentage of their income similar to the middle 60% of filers.

The New Brackets

*Using Tax Year 2021 dollars and brackets; actual Tax Year 2022 brackets will be adjusted for inflation and announced in November or December 2021 by the Division of Taxation.
**The amount of $475,000 marks the cut-off for the top 1% in taxable income for Tax Year 2021; in order to arrive at
this figure for the inflation-adjusted 2021 bracket cut-off, the proposed legislation should make the cut-off $394,500 (in 2011 dollars); at the time of the original switch from five to three brackets, the new cut-offs were $55,000 and $125,000, inflation-adjusted for Tax Year 2021 as per this chart.

News

Providence Journal

February 24, 2021

Organized Labor, allies push for tax hikes on high earners