Little Local Support For Chafee Tax Proposals

Gary Anderson isn’t happy about Governor Chafee’s proposal to tax air as part of his budget.  He’s put up a sign at his Ski and Dive shop on Post Road advising customers to beat the possibility of a 1% tax on compressed air by buying their air coins and cards now.

Anderson sells compressed air to divers and paint ball enthusiasts. There is a similar sign over the downhill skis, urging customers to avoid a proposed 6 percent tax on services by getting ski tune ups now, before the budget gets passed.

Frank Prosnitz, who heads the campaign to re-open the Odeum, is concerned about the proposed 6% tax he would have to add to the price of tickets.

With a full plate trying to get the theater up and running, Prosnitz says his group hasn’t yet addressed the tax issue, but will be in contact with local legislators.

He thinks the tax would have a tremendous negative impact on the Odeum because it has to compete with out of state venues including Foxwoods and Mohegan Sun who can offer free entertainment and comp some customers.  He said the additional tax would also affect larger centers like the Providence Performing Arts Center.

Local legislators' views

State Senator Dawson Hodgson, a Republican whose district includes East Greenwich, North Kingstown and Potowomut, said he gets mail, e-mails and phone calls from constituents every day and not one is in favor of the budget.

He and the handful of Republicans on the Senate side in the statehouse are trying to put together an alternative budget, a big challenge because they no longer have access to the Governor’s policy and fiscal staff as they did in the Carcieri administration. 

“It’s also tough,” he said, “because there is not a dime in this budget that doesn’t mean something to somebody.”

Hodgson worries about a budget deficit next year, projected to be bigger than this year, even if tax increases are adopted.  He says it suggests to him that next year the Govenor will double down and increase taxes again.

State Representative Bob Watson, the House Minority Leader, thinks there is plenty of room in the budget for cuts.  He points to the Health and Human Services budget, which he said has almost doubled during the last five years.

Phone calls and letters to legislators get attention according to Watson, and they should be sent to office holders in neighboring districts as well as local legislators.  He says any time a legislator gets phone calls on a given issue, it gets taken up.

Having a governor who is an independent into the legislative mix creates an interesting dynamic according to Watson.  He sees the handful of Republicans in the House and Senate being more in play this year than any previous year he has been a leader.

Chamber prespective

At the East Greenwich Chamber of Commerce office, Executive Director Steve Lombardi said local salon owners, who are , have been in touch about their plans.  

The Chamber is a member of the Statewide Coalition of Chambers of Commerce, whose boilerplate language on legislative issues has had a statement of opposition to tax increases for years.

The Coalition’s annual legislative reception at the Statehouse begins at 4:30 this afternoon.   Traditionally it is promoted to Chamber members as an opportunity to meet and mingle with members of the legislature, but this year the conversation is expected to include a lot of talk about taxes.

The Chamber has invited the three legislators who represent East Greenwich, Watson, Hodgson and Senator Glenford Shibley to meet with the Board of Directors and interested members on April 13.