By Tiffany Williams –
PROVIDENCE, R.I. — Rep. William W. O’Brien, a Democrat representing District 54 in North Providence, said he will introduce legislation to significantly expand Rhode Island’s earned income tax credit, a move he argues would provide immediate relief to working residents and small businesses while positioning the state as a national leader on the issue.
O’Brien outlined the proposal at an event hosted by United Way Rhode Island at the State House, where advocates and lawmakers gathered to underscore the importance of the Earned Income Tax Credit. His bill would raise the state credit from its current level of 16 percent to 30 percent, directly tying the benefit to the federal earned-income credit received by eligible taxpayers.
“Raising this important income tax credit will go toward helping so many residents and small businesses in our state. By raising the tax credit to 30 percent, not only would we be encouraging people to work, but it would also make us a leader in the nation in encouraging and rewarding our residents to work hard. Everyone for the most part needs a little help these days and for our residents, families and small businesses, this tax credit would go a very long way,” O’Brien said.
Under the proposed legislation, any taxpayer entitled to a federal earned-income credit would be allowed a Rhode Island earned-income credit equal to 30 percent of the federal amount. The change would mark a sharp increase from the current structure and would expand the scope of assistance available to low- and moderate-income workers across the state.