State Rep. John Edwards Talks Taxes, Small Business at Economic Forum

State Rep. John G. Edwards (D-Dist. 70, Tiverton, Portsmouth) visited Tuesday night to host a forum concerning proposed changes to the taxation of goods and businesses and to field suggestions from small business owners.

“We want to increase our volume, lower the tax, give our people a break. Don’t tax the necessities and become the pirates of southern New England,” said Edwards, who introduced a bill to reduce the Rhode Island sales tax from seven percent to three percent in March. “There’s no reason why we can’t scoop up all that sales volume [from Mass. and Conn.].”

When Edwards asked what business owners needed from the government to expand, the consensus was a simple need for more money.   

“We’re getting there. We passed nine bills last year. We turned a corner on our attitude. The state’s always been, I feel, fairly anti-business,” said Edwards. “We’re going to move further away from our anti-business climate. But it’s going to be a couple more years.”

A competitive arena for Rhode Island businesses is one proposed remedy for the state’s ailing economy.

According to the Tax Foundation, a nonpartisan educational  organization based in Washington, D.C., Rhode Island ranks 42^nd in their 2011 Business Tax Climate Index. This is a sharp contrast to other New England states, such as New Hampshire, which placed seventh on the index.

Edwards utilized the example of cigarette sales to illustrate the difference between Rhode Island and other New England states. According to Edwards, Rhode Island sells 40,000 cartons a month, whereas similarly-sized New Hampshire sells 140,000 due to the lower cigarette tax.    

Edwards’ proposed three-percent sales tax intends to level out the gap in favor of Rhode Island.

“My point was to get it so far below our neighbors, that they’ll have to come here,” he said.

According to Edwards, Rhode Island would be the first state in the country to have a gross reduction of the sales tax underneath his proposed bill.

Edwards noted what he sees as a growing marine industry in Portsmouth, emphasizing that taxes would not be beneficial to the industry’s growth.

“There’s no reason for us to tax it and possibly extinguish it,” said Edwards.

Edwards also talked of the General Assembly’s current work in restoring the economy and easing financial stress for business owners. Changes being considered by the General Assembly include the creation a uniform building code to expedite the moving process for business owners who wish to relocate or expand, and the elimination of a boiler inspection fee.

“It’s like a thousand paper cuts, what the General Assembly does with small fees,” said Edwards in references to small businesses.