“A politician gives the people what they want; a statesman gives the people what they need.” *
Lincoln Chafee took a huge political risk announcing his plan for a 1% sales tax on some now-exempt items. Lila Sapinsley, a member of his exploratory campaign committee with decades of experience in Rhode Island politics, was at first horrified (ProJo 10/24/10). But,
Chafee told Sapinsley the deficit would balloon once federal stimulus money, being used to plug budget holes, dries up by 2012. It was better to be honest and specific with voters now, he said. The stakes were too high and a state sales tax was a less painful way of raising revenue than passing on the problem to local communities, which would only hike property taxes again.
Look, nobody wants an additional tax, but a consumption tax is the more equitable of the two. While property taxes can affect people like the elderly, who have no way of increasing their income to cover a rate hike, a consumption tax is widely regarded as more accurately reflecting a person’s ability to pay it — we get a raise, we buy more things; we get laid off, we tighten our belts — and is thus the more fair tax.
Much like his courageous vote in the senate against authorizing the war, there is simply no explanation of Chafee’s announced tax plan that allows for political expediency. He simply believes some strong medicine is necessary and does the voters of Rhode Island the honor of believing that we can understand and handle this difficult truth. This is why I believe Lincoln Chafee will make an excellent governor and lead us out of this economic crisis. Lincoln Chafee is a true statesman.
For more info go to Lincoln Chafee for Governor.
*Churchill?
I work with elderly Rhode Islanders, and they do count every penny. However, a tax of $1 on $100 worth of groceries is not out of reach, and the most in need qualify for food stamps.
Raising property taxes is a bite for those who maintain a house on a fixed income, it spills over to renters who pay more to landlords, and not having enough revenue means that those same people see benefits cut, elderly housing rents up and less assistance.
There’s no way to make it easy in this economy, but we have to do more to make it fair. Our present governor said he is ‘happy’ that the richest Rhode Islanders get a tax break. He has served them well.
I would vote for Chafee in a heartbeat if I thought that the man had the vaguest freakin’ idea of what it’s like to make ends meet on less than 250k a year. Or 75k a year. Or 25k a year.
Can he govern? Yes he can. Will it be with working Rhode islanders in mind? Not so much.
here’s my question on this issue (and no matter what happens, i support Chafee for Governor!): if Chafee is indeed elected, can he alone enact this 1% tax, or would it have to be voted on and actually passed into law?
I meant to write “by raising the top marginal tax rate from 5.99”
A sales tax is actually considered a punitive or regressive tax, because while ostensibly people have the choice to not buy things, most people cannot actually go without food, clothing, footwear, home-heating oil, gasoline, over-the-counter-drugs, school meals and caskets (what Chaffee wants to tax). Everybody is paying 1% tax on these items, which means that low-income people are paying a disproportionately high percentage of their income with this sales tax. That’s not fair by most standards.
Implementing a progressive system of taxation in Rhode Island by raising from 5.99 percent would actually be a fairer and faster way to raise revenue. The elimination of the flat tax went a long way towards making the RI tax system better, but there’s a ways to go and the sales tax is a silly form of addressing our budget shortfalls.
Chafee has my Vote!