Massachusetts Governor Deval Patrick may be a hard core Progressive, but unlike Rhode Island Governor he’s got firm grip on capitalism, and how to eliminate the competition. For the second time in 2 years, Massachusetts has launched legislation that will fatten their coffers while throwing an anchor to a desperate Rhode Island economy just treading water. Governor Patrick’s plan to overhaul current Tax Code drops the current sales tax to 4.5% from 6.25% jeopardizing some $900 Million in R.I. Sales tax revenue. In keeping with his Progressive side, the drop in sales tax comes with the sting of $1.9 Billion in new taxes (Income Tax). R.I. Loss projections by the Casino bill (Ma.) passed November 2011 are still pending, but the first of three Massachusetts Casino’s scheduled to open 2014, are expected to take a bite out of R.I. gambling revenues, just south of $380 Million. Massachusetts shares Connecticut’s northern border clear to New York State. Governor Patrick’s looking to carve out a his share of Connecticut’s $4 Billion Sales Tax, and $14.7 Billion Gross gambling revenues. In the private sector this strategy would be likened to “Scorched Earth Capitalism”. Massachusetts has no interest, in competing with the RI and Ct. economies, this is a straight up Hostile Takeover. Given the lack of vision, leadership and shortage of Political Spartans on Smith Hill, and pressing matters of Lapdog legislation and equal opportunity Father Daughter dances, best we might expect from management is another Task Force, or Economic Commission…
Lowering taxes to generate higher revenues doesn’t reckon well with many on the hill. Fact is, a “Zero Percent” sales tax is the only defense to Governor Patrick’s hostile takeover, reverse the flow of cross border spending, establish new business, new jobs, Taxpayers all. Coupled with a bit of short term fiscal pain and the generous use of a chainsaw in the Department of Business Regulation, the state could stage a real recovery. The “Zero.Zero Report” produced by The Rhode Island Center for Freedom and Prosperity, a local Think Tank should be required reading reading for every business leader and member on the Hill, a digital roadmap to Zero Percent Sales Tax.
There’s good reason the Tax Foundation a left leaning think tank ranks the state in the bottom five in the country, Hostile to Business and individuals. The State’s short form resume is Bear Ugly, the R.I. 7% “Temporary Sales Tax” is now in it’s 23rd year, Dead Even with Nevada for the highest unemployment in the country. On a good day one can motor across the entire state in 30 minutes whose geographic footprint is no bigger than a small county in Texas or California, yet still props up a bloated government of 39 Municipalities, 39 Police and Fire Departments, 37 School departments complete with 39 redundant town bureaucracies. Current technology would easily support Central services after surviving 39 Municipal “Cage Matches” in dismantling the bureaucracy.
Past history on the Hill reckons Crisis and Elections are the only catalyst to action in Rhode Island. This is in fact a Crisis that “Re-Branding” won’t fix. Without the quick action the state stands to become an Economic Dead zone, with our chief export of Rhode Island Refugee’s and business seeking friendly territory… no doubt Governor Patrick will welcome their arrival. Last to leave the State don’t forget to turn of the lights.