Rhode Island businesses are objecting to Gov. Gina Raimondo’s latest budget-plugging plan, which would increase some tax bills during the COVID-19 pandemic.
Raimondo wants to restore a limit on the amount of business losses that can be deducted from state income taxes, after the federal CARES Act coronavirus relief bill eliminated it for the last three years. The increase in deductions allowed by the CARES Act is estimated to cost the state $29 million over two years.
But trade groups, business advocates and accountants say small businesses need all the help they can get to survive losses from the pandemic, not retroactive tax payments.
“By disallowing this deduction at the state level, the state would be increasing the burden on small business when they can least afford the increase,” Greater Providence Chamber of Commerce lobbyist Elizabeth Suever wrote in a letter to the House Finance Committee.