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Instead of providing funds to a few lucky companies with grants in aid, low interest loans or tax breaks Rhode Island should use these funds to increase its funding for education to a point where local communities could reduce their property taxes by 15%. Next, Rhode Island’s sales tax rate should be reduced to 3% on all taxable items and services and food, clothing and boats should be included in the list of taxable items. Finally, Rhode Island should reduce its tax on gasoline and diesel fuel to 20 cents per gallon.

When this tax plan is implemented, total sales tax revenue would increase because the sale of vehicles, jewelry and other big ticket items would increase. Upper income Rhode Island residents and tourists spend huge amounts on food and clothing. Next, every Rhode Island business owner and homeowner would save 16 cents on every gallon of fuel they buy, 4% on every item or service they buy and 15% on their property taxes. Businesses would expand and hire more employees and home owners would have the money to make improvements to their homes or to buy a more valuable home. Finally, every vehicle going to Northeastern New England or Cape Cod has to pass through Rhode Island. Thousands of these vehicles would stop to buy fuel in Rhode Island each day and each vehicle driver would spend a lot of time and money in Rhode Island. Yearly fuel tax revenue would probably double and this new tax plan would provide the funds to fully fund education, to eliminate the car tax and to repair Rhode Island’s road infrastructure.