Rhode Island GOP Eyes End of State Sales Tax

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.