[POLL] What Do You Think About Chafee’s Proposed Meals Tax Hike?

When it comes to Gov. Lincoln Chafee's proposal to increase the restaurant tax from eight percent to 10 percent, restaurant owners in Rhode Island have strong feelings. 

"Yet again, the state is leaning on the small business owner to bail them out of their mess," said George Doumaney, co-owner of in Portsmouth.

"It's infruriating and frustrating because the economy is difficult enough. This is just one other burden. With the price of gas, it's just going to affect everyone." 

John Chan, owner of  in Woonsocket, said he’s being hit doubly hard. 

“I don’t think we can take any more taxes, whether it’s on food or property,” he said. Woonsocket is facing a possible supplemental property tax increase of 15 percent this year to help close its school budget gap. 

“Business has already felt the impact,” said Chan, noting the meals tax in nearby Massachusetts is only 6 percent. 

According to Christine Hunsinger, Chafee’s communications director, the idea for the tax came from the cities and towns themselves. 

“This was one of the suggestions that came out of the meeting with the mayors,” she said, referring to a series of municipal strategy sessions Chafee held with mayors and town managers. “Ideas were talked about and discussed — this was one of those suggestions.”

The additional two percent in taxes would be funnelled back to cities and towns through the education funding formula, she said. “The governor’s been very clear and very committed to the cities and towns this year.”

“If the implication is that the mayors proposed a two percent tax, that is not accurate,” said Cranston Mayor Allan Fung. “I’m not sure I would phrase it that we proposed the two percent tax. I came from a small business background and a restaurant background. I certainly support the acceleration of school funding but I do have serious concerns about imposing that two percent.”

That said, Fung wouldn't say he was absolutely opposed to the proposal. "It’s not an easy yes or no," he said.

"It’s not a broad-based tax," argued Hunsinger. "It’s a tax that hits disposable income. Property tax is the most difficult to pay. Those continue to skyrocket at the municipal level.... It’s really pennies on a pizza."