This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

RI Gov Calls For Lower Biz Taxes In State-of-state


PROVIDENCE, R.I. (AP) â¿¿ Insisting that Rhode Island is on the rebound, Gov. Lincoln Chafee on Wednesday urged lawmakers to cut corporate taxes and boost education spending to encourage the state's fledgling recovery.

In an upbeat state-of-the-state address, the independent governor said rising revenues and receding deficits show the state economy is inching its way out of its deep doldrums. He used the speech to outline his $8.2 billion budget proposal, which comes without any increases in taxes or fees and no deep spending cuts.

"Two years ago, when I was sworn in as governor, Rhode Island was facing a $295 million deficit, our unemployment rate was 11.4 percent ... many cities and towns were on the verge of collapse," said Chafee, appearing relaxed and loose in the House chambers. "Our state workforce was demoralized. A gloomy cloud of negativity gathered over our state. It takes time for the sun to break through, but it is."

Chafee's proposal would lower the corporate income tax rate over three years from 9 percent to 7 percent. Currently, the state's rate is the highest in New England, but Chafee would drop the rate below its five neighbors.

Top lawmakers said they liked the message. House Speaker Gordon Fox and Senate President Teresa Paiva Weed both said they support calls to lower the corporate tax rate, and hailed his call to boost school spending by $30 million. That's in stark contrast to the tepid reception for Chafee's budget proposals in 2011 and 2012, both of which called for significant new taxes that were not approved by lawmakers.

"It's a very, very good start, probably the best start we've had," said Fox, D-Providence.

Paiva Weed, D-Newport, said that lawmakers may quibble with some of the details in Chafee's proposals, but she praised him for proposing "bold steps" to help the economy.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.27 -0.76%
FB $101.00 1.47%
GOOG $684.12 0.89%
TSLA $143.67 -3.09%
YHOO $27.10 1.04%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs