RI STATE BUDGET: OTHER TRUTHS

Here are some truths about the budget we are not hearing in RI: (from URI economist R. McIntyre)

It is true that health care costs, pension costs, and education spending,
especially on special ed, have risen in RI (and nationally). But the attention
to these issues in the media is way out of line with their relative
importance. Consider the following, all taken from Tom Sgouras's wonderful
publication, "Rhode Island Policy reporter" (www.whatcheer.net):

Corporate taxes have declined from 14% of the general
revenue in 1990 to less than 7% today. In today's
dollars, this is around $200 million in lost revenue.

We've cut the capital gains tax twice at a cost of about $40 million.

The personal income tax was cut 9% between 1997
and 2002, costing us about $110 million this year.

The phaseout of the car tax is costing $140 million
this year.

We've cut taxes on the richest taxpayers to a degree
that will eventually cost us $100 million.

So as the governor, the supposedly democratic legislature, and the supposedly
independent media, tell their story as if it were the only truth, there are
certainly others.