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“High Rate” Income Tax States Are Outperforming No-Tax States

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This year, lawmakers in Rhode Island have introduced a number of bills that would return various degrees of progressivity to the state’s income tax. Under the personal income tax overhaul enacted in 2010, the number of tax brackets was reduced from five to three and the top four rates were replaced with two lower rates, so that today income between $0 and $55,000 is taxed at 3.75 percent, between $55,000 and $125,000 at 4.75 percent, and $125,000 and above at 5.9 percent. The proposals that have been introduced all add a fourth bracket and a higher tax rate in.

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