McKee discusses tax relief and small business initiatives at 'Eggs and Issues' breakfast

(WJAR) — Governor Dan McKee spent Monday morning with the Northern Rhode Island Chamber of Commerce touting the impact his budget proposal could have on small businesses.

The Governor says he’s focusing on things like lowering sales tax and providing energy relief to try and keep Rhode Island competitive with states like Connecticut and Massachusetts.

“We don’t know what’s to come, you hear the term slowcession, you hear rolling recession and maybe no recession at all, but they need to be prepared so having this information ahead of time is extremely helpful,” said Northern Rhode Island Chamber of Commerce President Liz Catucci.

McKee joined Northern Rhode Island businesses this morning highlighting how he says his budget proposal can help ease the pain many businesses are feeling.

“It’s been a rough two years for our members with COVID so any other onerous taxes make it really difficult for our businesses,” said Catucci.

McKee says lowering sales tax incrementally, delaying the increase on the gas tax, and providing energy relief are some of his top priorities.

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“It’s a strategy that we’re going to do over and over every year, I get to do a budget this year and three more years, and each year we’re going to try and make more progress,” said McKee.

McKee says the changes will need to happen gradually with a goal of leveling the playing field with neighboring states like Connecticut and Massachusetts.

“The sales tax alone, a 1 percent decrease on the sales tax is anywhere from $180 million to $200 million of potentially lost revenue in the budget. People who ask can you bring it down two points that’s close to $400 million dollars,” said McKee.

Catucci says 90% of the businesses in the state are small and they want to make sure they’re keeping that business right here.

“Investing in our small businesses really does invest in the people of Rhode Island,” said McKee.

The governor is urging business owners to talk with state legislators about what they’d like to see in the budget and how these policies can help them move forward.