Tax Foundation on What Senate Tax Reform Would Mean to RI

The Tax Foundation, specifically Nicole Kaeding and Morgan Scarboro, has estimated the effects of the U.S. Senate’s version of tax reform:

The TAG model estimates that the plan would result in the creation of roughly 925,000 new full-time equivalent (FTE) jobs, while increasing the after-tax incomes by 4.4 percent in the long run, meaning families would see an after-tax income boost of 4.4 percent by the end of the decade. The increase in family incomes is due in part from individual income tax reductions and the broader rise in productivity and wages due to economic growth.  These estimates take into account all aspects of the Senate version of the Tax Cuts and Jobs Act, including changes to the individual and corporate tax codes.

The results are provided by state, and Rhode Island stands to gain 3,135 jobs, with the typical middle-income family seeing another $2,707 in income.

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Keep in mind that this is the outcome of improving the tax climate nationally.  Imagine what would be possible if the State of Rhode Island were sufficiently forward thinking to improve its own tax and regulatory climate relative to other states.

Disclaimer: The views and opinions expressed in The Ocean State Current, including text, graphics, images, and information are solely those of the authors. They do not purport to reflect the views and opinions of The Current, the RI Center for Freedom & Prosperity, or its members or staff. The Current cannot be held responsible for information posted or provided by third-party sources. Readers are encouraged to fact check any information on this web site with other sources.

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