Rhode Island Enacts 8.99% Tax on $1 Million Incomes to Shore Up Budget
Updated
Updated · Bloomberg · Jun 12
Rhode Island Enacts 8.99% Tax on $1 Million Incomes to Shore Up Budget
1 articles · Updated · Bloomberg · Jun 12
Summary
Governor Dan McKee signed a budget Friday creating a new levy on income above $1 million, making Rhode Island the latest state to adopt a millionaire tax.
The measure lifts the top income-tax rate to 8.99% from 5.99%, but lawmakers chose a three-year phase-in instead of McKee’s earlier plan for an immediate full increase.
Rhode Island is using the tax to bolster state finances despite warnings that losing even a small number of wealthy residents could hit the nation’s smallest state disproportionately.