State Representative Joseph Trillo (R-Warwick) has introduced legislation to eliminate the personal income tax for all Rhode Island retirees.
“There are Rhode Islanders who are leaving our state because of the burdening tax code. Changes are needed before more of our population relocates. We are exporting people from our society and importing people who need to be taken care of. By eliminating the personal income tax on retiring Rhode Islanders, we will stop the mass exodus to other more tax-friendly states. Keeping these individuals will increase personal spending in Rhode Island, which will have a substantial effect upon our economy,” said Trillo in a release.
“Rhode Island has one of the highest tax rates in the country,” said Trillo.
According to the Tax Foundation, Rhode Island ranks as the 8th highest taxed state in the nation.
“Rhode Islanders need relief,” he said. “People are mobile and will leave for better opportunities and lower taxes. We must provide a reason for them to stay in our state. Once they leave, they take with them their spending, property taxes and contributions to our economy.”
The bill specifically targets Rhode Islanders who have reached full retirement age as determined by the Federal Social Security Office. There are a number of states that already exempt some form of retirement income. Rhode Island is at an economic disadvantage to these states.
“Rhode Islanders have been voting with their feet. In order to stop this population drain, we need to start paying attention to other states and make Rhode Island comparable,” he said.