IS RELIEF FINALLY ON THE WAY?

Count the mayors of Providence and Central Falls as those supporting House Speaker Nicholas Matitello's plan to cut the state's dreaded car tax. The first hearing of the Speaker's car tax repeal legislation was held last night. The biggest question remains unanswered. Exactly where will cities and towns come up with the $221 million dollars of annual lost revenue? Nationally, 24 states don't tax cars at all, and among the state's that do, Rhode Island has the highest car taxes. Critics of the Speaker's plan say the phased-in repeal would eventually cost the state in annual revenue could be better spent, and making the promise of such a big tax cut without being specific as to  where the money will come from is "irresponsible. Mattiello cites future revenue growth in an improving state economy and unspecified savings from a leaner government as ways he expects to provide the first round of car tax reimbursements. But what if the state's economy stalls? RI cities find themselves in a rob Peter to pay Paul situation and need to raise other taxes? This is the Speaker's "signature legislation", a promise he made during his re-election campaign, a race he barely won. The House Speaker is the most powerful political figure in Rhode Island...the captain of a pirate ship....and is this is HIS signature bit of legislation, expect it to pass. 


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