Rhode Island House Bill H5470

Rhode Island 2023 Regular Session

• Introduced: 2/8/23
• Refer: 2/8/23

Caption

Personal Income Tax

Impact

If enacted, H5470 would significantly change the landscape of personal taxation in Rhode Island by increasing the earned-income credit, thereby encouraging more individuals to enter the workforce and claim credits based on their earned income. The amendment would impact families and individuals who qualify for this credit, ultimately resulting in increased disposable income for those within the qualifying income thresholds. Furthermore, the bill signifies a legislative commitment to support working families through tax relief measures.

Summary

House Bill H5470, introduced in the Rhode Island General Assembly in February 2023, proposes amendments to the personal income tax laws. Specifically, the bill seeks to raise the Rhode Island earned-income credit from fifteen percent (15%) to fifty percent (50%) for tax years beginning in 2024 and onward. This adjustment is aimed at providing greater financial relief to lower- and middle-income taxpayers by enhancing the efficacy of the earned-income tax credit as a tool for alleviating tax burdens.

Contention

While there could be support for this bill from advocacy groups representing low- to moderate-income families, potential points of contention may arise regarding the bill's funding and the implications for state revenues. Critics may argue about the long-term fiscal stability of the state, questioning whether such increased credits would lead to shortfalls in state funding for other essential services. Additionally, assessment of the bill's effectiveness in achieving its intended benefits could be a matter of debate, as stakeholders will be keenly interested in its actual impact once implemented.