As the Rhode Island legislative session progresses in 2025, attention centers on the state’s revenue challenges and potential tax increases. Lawmakers indicate that all options remain open while they address these financial shortfalls.
Labor activists are advocating for new tax brackets targeting “higher income” earners. However, this includes pass-through entities such as S corporations, partnerships, and LLCs, often small businesses. Because most small businesses use pass-through taxation, they would experience higher taxes under this proposal. According to opponents, these changes would not only impact wealthy earners but also harm local businesses.
The National Federation of Independent Business (NFIB) has expressed opposition to these tax proposals. “NFIB will provide comments in opposition and will send you additional information so that you may contact your lawmakers,” they stated.
Moreover, there are discussions to increase the state minimum wage. The NFIB testified against proposals to raise the minimum wage to $22 per hour last month, citing negative impacts on small businesses. They urge individuals to reach out to lawmakers to oppose these wage increase proposals.
