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Raptakis Bill Eases Burden of Corporation Tax

The bill states that if a corporation’s annual gross receipts amount to less than the $500 minimum tax, any difference up to $500 is to be refunded to the corporation by the state.

 

"Taxes are a big concern of many small businesses," said Sen. Leonidas P. Raptakis (D-Dist. 33,Coventry, East Greenwich, West Greenwich).

“We talk about helping small businesses succeed and grow in Rhode Island, but we leave all sorts of impediments in the way,” Senator Raptakis continued. “For many small businesses, the margin between success and tough times is not that large. Every extra tax puts that much more strain on businesses owners.”

"The corporations tax that is imposed on Rhode Island businesses is one more example of the state taking in tax revenue without realizing the financial damage it may be causing to small businesses. It is imposed because the law says it can be imposed, without any thought given to the impact that tax can have on the success or failure of small companies.”

Under existing tax structure, each Rhode Island corporation is required to pay the state a tax equal to 9 percent of net income, but not less than a minimum of $500.

Legislation introduced by Senator Raptakis, 2013-S 0133, would help blunt that tax for the small companies that are now paying the $500 annual minimum. The bill provides that if a corporation’s annual gross receipts amount to less than the $500 minimum tax, any difference is to be refunded to the corporation by the state, provided the refund amount does not exceed $500.

“Start-up and small businesses often cut it very close to the bone on their gross receipts. A $500 minimum corporations tax can wipe that out,” said Senator Raptakis. “That is not what our laws should be doing. We should be finding ways to help cut costs to businesses, and this is another example of how we can do that. In cases like this, any tax loss to the state is far outweighed by the benefit of a small business staying in business, and using an extra $300 or $400 or $500 to help make payroll or cover other operating costs.”

The Raptakis legislation has been referred to the Senate Committee on Finance. It is co-sponsored by Sen. Marc A. Cote (D-Dist. 24, Woonsocket, North Smithfield), Sen. William A. Walaska (D-Dist. 30, Warwick), Sen. Frank A. Ciccone III (D-Dist. 7, Providence, North Providence) and Sen. Michael J. McCaffrey (D-Dist. 29, Warwick).

“If we want to move the needle, and have start-up companies and entrepreneurs start thinking about Rhode Island as a good place to do business, we have to prove that our laws and our tax structure will not be a significant burden on their growth,” he said. “A small adjustment in the corporations tax, which will help many small firms, is a good place to start.”

coventry voter-Jay February 28, 2013 at 06:53 PM
You see the problem here? Just read the comments. . Raptakis could invent a machine that spins gold from bails of straw and his fellow Dems would complain about: The cost of straw. My brother wants a job loading bails. We want you to use union straw. These spools of gold are to heavy. . This is what happens when stand up against the Dem machine in RI and in Coventry. It's like he went against the "family"
John February 28, 2013 at 10:56 PM
coventry voter-Jay I think you are the biggest hater on the patch!! Your just another right-wing teabagger who hates themselves...Get a life, people are tired of your crying all the time.
chainsawman February 28, 2013 at 11:01 PM
Agreed! I know people in the senate that say Lou has no power up there and they are amazed Coventry sent him back!! So don't expect miracles from him with no pull.
coventry voter-Jay March 01, 2013 at 02:25 PM
@John VVVV Below Me, Your name calling proves my point(s) Raptakis is a Dem, but because he doesnt conform to the Dem mold, and is an independant thinker. he is shunned by his party. @chainsawman, Your comments "No Power" and "No Pull" are exactly the problem at the state house. It should not require Power and Pull to do what it right. Special interest groups like the unions have made it impossible to get anything done IF it differs from the union agenda. And that is the truth!! Call me a hater....doesnt matter because its not true. Reality is crooked, paid for politicos, backed by the unions have drove this state into the hole its in. The evidence is on the news and in the paper every day.
chainsawman March 01, 2013 at 04:37 PM
Dude i'm not in a union, But if your going by the way the Republicans in congress run things I will take my chances, You have been blinded by the tea-party bullshi@#

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