This week, the National Federation of Independent Business (NFIB) voiced its opposition to two legislative proposals that could affect small businesses in Rhode Island.
The first bill under scrutiny is a proposal for a single-payer, government-run healthcare system. This initiative was presented to the House Corporations Committee and involves introducing a new payroll tax to fund the program. The proposed tax structure includes a 10 percent payroll tax, with employers responsible for 80 percent of this amount and employees covering the remaining 20 percent. Additionally, self-employed individuals and unearned income would be subject to an initial 10 percent tax rate. These rates are subject to adjustment. A similar attempt in Vermont had to be abandoned due to financial concerns about potential state bankruptcy.
Another bill opposed by NFIB seeks to establish a “Climate Superfund.” This legislation was discussed by the House Committee on Environment and Natural Resources. It aims to hold businesses that produce or refine fuels financially accountable for any environmental damage caused by their products from January 1, 1990, through December 31, 2024. The funds collected would serve various purposes. New York passed comparable legislation earlier this year but faced legal challenges from 22 Attorneys General nationwide who argued it violated the interstate commerce clause. Critics warn that such legislation could increase energy costs in Rhode Island as utilities may pass these expenses onto consumers.
