Rhode Island Republicans may push a plan to abolish the Ocean State’s 7 percent sales and use tax next year,
The Providence Journal reports.
House Minority Leader Brian Newberry, R-North Smithfield, said GOP leaders are researching the proposal, which could give a “big boost’’ to business productivity and sales by removing their burden of administering the tax.
The tax — which excludes state taxes on gas, tobacco and alcohol — is expected to raise $887 million in revenue for Rhode Island in the budget year that ends July 1.
The lost revenue could be made up by a combination of boosting other state taxes and cutting state spending, Newberry told the Journal.
"If I could have a net tax cut that would involve some combination of eliminating the sales tax, cutting state spending but raising the income tax, I'd be willing to look at that," he said.
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