In a radio interview yesterday, Don Carcieri said he would “love to find a way”  to abolish the state income tax and move to a system that would tax consumption.  He said he mentioned the topic to begin a discussion and is currently awaiting a study of Rhode Island's tax structure.  Unfortunately,  some of our elected officials want to take as much money from us as they can.  One such official is House Speaker William Murphy, who said,


  “again, one week before the election, the governor has a sound bite, not a sound plan. Where is the governor going to find the $1.1 billion that Rhode Island would lose in general revenue?” 


     A "sound bite, not a sound plan?"  With a line like that and a General Assembly that helped create a financial mess, he criticizes Carcieri for having a sound bite and no plan?  The chances of eliminating the income tax in 2009 are virtually nonexistent, but I'm glad the Governor brought it up.  Since Massachusetts is set to vote on question 1, which would abolish its income tax, it is bound to get more attention in Rhode Island, and the Governor's support lets residents know it might be possible.

     As for Mr. Murphy, he wants to know how we would replace the $1.1 billion that would be lost with the elimination of the income tax.  First, we would tax consumption.  The more you spend, the more you pay.  Therefore, we wouldn't be losing $1.1 billion from the budget.  The actual reduction in revenue would probably be substantially less.  Second, we would need to make cuts.  More money equals more power, so I can understand why William Murphy is reluctant to let a large chunk of our money slip through his fingers, but let's not forget that it is our money.



http://www.projo.com/news/content/governor_proposes_tax_repeal_10-29-08_KPC3AB6_v21.3ab922a.html