Allan Fung’s ‘Standing Up for Small Business” plan will include:
Giving struggling businesses a break:
If a small business can demonstrate that it is not turning a profit, that business shall pay no minimum tax that year.
Stopping the practice of harassing audits:
Business owners shouldn’t have to stop their lives for harassing audits that interrupt business operations for weeks and months.
Stop penalizing the transfer of a business from one family member to the next:
The inheritance tax on the transfer of a family business from one family member to another will be ZERO, provided that the business stays in operation for the next five years. A “claw-back” provision would be instituted, if the business is moved out of state or sold within the five-year period.
Maximizing Federal Funds for Entrepreneurs:
We’ll include state matching funds in the budget for the Center for Women & Enterprise and Veteran’s Business Outreach Center, in order to leverage and maximize federal dollars. This will help to increase technical assistance for emerging small businesses.
Common Sense Limitations for Tax Liabilities
We’ll institute a 10-year statute on the ability of the state to collect back tax liabilities. Currently, Rhode Island has no statute.
Reducing Interest on Back Taxes
We’ll work to reduce the 18% interest rate on past due taxes to be more in line with other states.
Institute the Previously Announced Low Fee Guarantee
In the first six months of Fung’s administration, he will comb through every single occupational licensing, permitting, and business incorporation fee we charge, and make them the lowest in New England.
These guiding principles will help our state’s small businesses thrive and grow in Rhode Island. Gone will be the days of providing taxpayer subsidies to a few select Fortune 500 companies while forgetting about the heart and soul of our state’s economy.
We should concentrate our efforts on small businesses, and leverage dollars to insure that they have the access to capital that they need to be successful.