Providence, RI — Instead of seeking to shape Rhode Island’s future with the proven ideals of a free-society, Governor Raimondo’s proposed 2019-2020 budget is a stunning departure from America’s core values and, instead, would put our state on a “Rhode to Serfdom,” according to the RI Center for Freedom & Prosperity.
With the Ocean State doomed to lose a US Congressional seat because of its hostile tax, educational, and business environment, which chases away wealth, families, and businesses, the policies presented in the Governor’s budget would make matters far worse.
“Just yesterday, I attended a thoughtful lecture by the chief economist for JP Morgan Chase at an event hosted by the RI Society of CPAs. His message was that economic growth is the best path to achieve prosperity and to manage deficits … not raising taxes and not necessarily cutting spending,” commented Mike Stenhouse, the Center’s CEO. “However, this Governor’s regressive budget points us 180 degrees in the opposite direction and would stifle any opportunity for growth. Ocean Staters are clearly being forced down a Rhode to serfdom.”
With new government-imposed health insurance mandates that will further burden already distressed families as well as employers who are already suffering from one of the worst business climates in the nation, and along with a bevy of new taxes and fees that will further restrain economic growth, the proposed budget takes a giant step backwards towards a centrally-planned society, where government controls more and more aspects of our lives. The entire country is thriving, economically, from reduced government intrusion into our lives, but these progressive-left policies would increase dependency on government.
The proposed Medicaid tax on businesses and the individual mandate are particularly egregious. Each would serve as yet another reason for large employers and families to stay away from Rhode Island. It is oppressive that the government would seek to punish employers for not compensating their workers how the government wants them to; or to punish individuals not being able to afford the high-cost insurance resulting from the government created Obamacare mandates.
“For the better part of a decade, the State has encouraged and bragged about the number of people enrolled in Medicaid with taxpayer funded ads, and now she wants to make businesses pay for it,” cynically question the Center’s research director, Justin Katz.
Equally disturbing, the budget contains no meaningful remedies to the many problems that plague our state, such as high taxes across the board, high energy and healthcare costs, and onerous regulatory burdens on job-producers.
“On top of her irresponsible new spending proposals, clearly designed to benefit special-interest unions, the reliance on SIN taxes to pay for these schemes will tear at the cultural fabric of our society,” continued Stenhouse. “The continued attacks against legal firearms owners and smokers, along with the unsustainable increase in overall government spending, with its immoral budget scoops, also points Rhode Island back towards a totalitarian form of government that I thought we were done with in America.”
For these reasons and more, Rhode Island suffers from an epidemic of people and businesses fleeing our state. “Maybe it’s time to build our own wall to keep people in,” joked Stenhouse earlier in the week.
The Center again calls on General Assembly leaders to reduce the state’s sales tax, citing existing law that requires such a rate-reduction if certain “internet” taxes are enacted. With the multitude of new sales taxes imposed in recent budgets, the Center maintains that we have essentially reached that legal threshold.