By Tiffany Williams –
PROVIDENCE, R.I. — Lawmakers unveiled an aggressive new tax plan Thursday aimed at forcing the state’s wealthiest residents to pay what supporters say is their fair share while generating revenue to cover critical gaps in Rhode Island’s budget. The “Fair Share for Rhode Island Package” includes four bills targeting high earners and extreme wealth, with revenue expected to top $650 million annually. Lawmakers said the funds are urgently needed to support public schools, hospitals, childcare, roads, bridges, and public transit.
The package includes a 1-percent tax on worldwide financial assets over $25 million, a 3-percent surtax on income above roughly $640,000, a 4-percent tax on passive income such as capital gains, dividends, interest and annuities, and a digital ads tax on businesses with at least $1 million in annual digital ad revenue. Representative Brandon Potter, who introduced the wealth tax in the House, framed the legislation as a moral imperative.
“In a state steered by Democrats, we have to do better for working people,” Potter said. “This group of Working Families Democrats are committed to passing this Fair Share for Rhode Island Package so that we can help keep children fed and keep seniors on their health care, while raising more than $650 million a year to support good schools, transportation and the state workforce needed to deliver the high-quality services that make Rhode Island a better and more affordable place for all of us to live.”
Senator Tiara Mack, who is sponsoring the wealth tax in the Senate, said the plan prioritizes essential workers over wealthy interests. “Passing the Fair Share for Rhode Island Package means finally prioritizing the hardworking Rhode Islanders who keep this state running — the nurses who kept us safe throughout the pandemic, the teachers who pay for school supplies out of their own pockets, the bus drivers who take us where we need to go — over a handful of wealthy and well-connected families,” Mack said.
Lawmakers cited federal cuts under former President Trump’s 2025 “One Big Beautiful Bill” and the state’s recurring budget deficits as reasons the package is necessary. Rhode Island faces a $32 million shortfall at RIPTA, nearly $30 million in halted federal education funding, and a $100 million state budget gap. Supporters also criticized Gov. Dan McKee’s recent “millionaire’s tax” proposal as insufficient, arguing it leaves loopholes and fails to tax extreme wealth effectively.
“Budgets are moral documents,” said Representative Teresa Tanzi. “But what lays our morals bare is how we pay for our budgets — by cutting the services we depend on to the bone, or by asking the wealthy to pay their fair share, so that we have more of the funding we need to help improve the lives of everyone who lives here.”
Rep. Rebecca Kislak said the package is about fairness and protecting communities. “Everyone here is committed to fighting for the Fair Share for Rhode Island package and for unrigging our tax system so we all can benefit. We call on the governor and our colleagues in both houses to show up for the working people of our state.”
Supporters said the plan would ensure the state’s top 1 percent no longer pay a smaller share of their income in state and local taxes than most Rhode Islanders, while closing gaps left by repeated federal tax cuts for the ultra-wealthy.