Impact of President Obama's tax plan on Rhode Island and how the planned tax hike or tax increase will impact Rhode Island's economy.

1. THE EFFECTS OF THE OBAMA TAX PLAN
Rhode Island
President Obama’s tax plan would allow portions TOTAL EMPLOYMENT
of the 2001 and 2003 tax cuts to expire, resulting in Annual Change in Jobs
steep tax hikes beginning in January 2011 for small
2011 2015 2020
businesses and those earning $250,000 or more. 0
The tax hikes would significantly affect the economy
in Rhode Island, most notably in the number of jobs –400
and change in personal income.
–800
Among the results, from 2011 to 2020, the state –1,200
of Rhode Island would:
• Lose, on average, 2,531 jobs annually. –1,600
• Lose, per household, $1,014 in total disposable
personal income. –2,000
• See total individual income taxes increase by
–2,400
$1,729 million.
–2,800
Source: Heritage Foundation calculations based on the IHS Global
Insight U.S. macroeconomic model, and data from the U.S. Census –3,200
Bureau and U.S. Department of Labor, Bureau of Labor Statistics.
–3,197
REAL DISPOSABLE INCOME TOTAL INDIVIDUAL INCOME TAXES
Annual Change per Household Annual Change in Millions of Dollars
$214.5
2011 2015 2020
$0 $225
$200
–$20
$175
–$40
$150
–$60 $125
–$80 $100
$75
–$100
$50
–$120
$25
–$140 $0
2011 2015 2020
–$128.39
Chart RI • Obama Tax Plan by State heritage.org

2. THE EFFECTS OF THE OBAMA TAX PLAN
Change in Employment in Rhode Island
Average Annual Change in Total
Employment, 2011 to 2020, by
Congressional District
Jobs Lost: 800–1,399 1
Jobs Lost: 1,400–1,599
Jobs Lost: 1,600–1,799
Jobs Lost: 1,800–2,320
1
2
State: 2,531 jobs lost annually on average
Source: Heritage Foundation calculations based on the IHS Global Insight U.S. macroeconomic model, and data from the U.S. Census Bureau and U.S.
Department of Labor, Bureau of Labor Statistics.
Map RI • Obama Tax Plan by State heritage.org