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Sen. Kettle Proposes Elimination of Minimum Business Corporation Tax

Eliminating the $500 minimum would keep $23 million in the hands of local businesses that need it, says Kettle.

Senator Nicholas D. Kettle, (R-Dist. 21, Coventry, Foster, Scituate, West Greenwich) last week introduced legislation that would eliminate the $500 minimum business corporation tax.

Rhode Island annually levies a corporate income tax equal to nine percent of net income. Under current statute, corporations must pay the state at least $500, regardless of their income. Based on data from 2007, 93 percent of the state’s 50,605 corporate filers claimed the minimum tax liability. That figure only represented 18.8 percent of collections.

“It’s exactly this kind of tax that makes it difficult for businesses to afford to operate in Rhode Island,” Kettle said.

Eliminating the $500 minimum would keep $23 million in the hands of local businesses. Should the bill, 2014-S2021, be approved by the Assembly, it would take effect upon passage and would apply to the 2014 calendar year.

Kettle named the elimination of the business corporation tax as one of his top priorities for this legislative session.

Maloderous Rex January 24, 2014 at 02:19 PM
@Listening - I go into business expecting to not immediately start with a $500 debt (for no reason other than existing, it's not like i NEED the state for something). Maybe they can take it from public transportation and welfare. @HarleyRider - Oh so you're a "useful idiot," then, comrade?
listening January 24, 2014 at 03:34 PM
By the way, your new BOD has big plans to fix the CCFD. Contract out the EMS and rely on neighboring districts to cover fire on a fee basis. What makes the BOD think the neighboring districts will go along with this on a permanent basis. It has already been said in court that it can't be done. Idiots. They are going to leave us in a dangerous situation. And Kettle is worried about $500 for businesses.
Iron Man January 25, 2014 at 12:25 PM
If we remove the partisan blather and the newsertainment talking points and just look at the problem, this is a good idea right now. Investing in business stimulus and job growth has got to be a priority in RI. As far as where the money comes from, I would rather invest in this than in the $350 million in bonds that Chafee proposes.
Jim Sullivan January 26, 2014 at 07:36 AM
Nick, good work as always keep it up
coventry taxpayer 2 January 26, 2014 at 02:12 PM
Did this kid come out of the closet yet?? He has nothing to be ashamed about. It's his tea-party friends that would hate him. Sad!

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