March 17, 2009
Providence Journal Story on Combined Reporting for Corporations Cites State Business Tax Climate Index
"For Corporations, 'Combined Reporting' is All About Perception"
By Providence Journal Moneyline
One of the points that opponents raised at the hearing went something like this: If Rhode Island were to require combined reporting, the state would be viewed as an unappealing place to do business.
And that's not good, said R. Kelly Sheridan, counsel for the Greater Providence Chamber of Commerce. After all, Rhode Island has improved in the Tax Foundation's annual listing of the most attractive states from a tax perspective.
Rhode Island is now 46th among the states.
It was 49th last year, and 50th the year before.
So Rhode Island needs to "stay the course," continue its recent progress and forget about combined reporting, the bill's opponents said.
That's when Costantino began playing a bit.
If the Tax Foundation scores Rhode Island based mainly - or even partly - on its high tax rates, why not lower Rhode Island's sales-tax rate, while broadening the base of items to which the rate applies? Costantino wanted to know.
