PROVIDENCE, R.I. (AP) — Lawmakers in Rhode Island are examining a proposal that would reduce the tax on capital gains when the investment was in a Rhode Island company.
The Senate Finance Committee plans to review the proposal and several other tax-related bills Tuesday.
The capital gains tax cut is the idea of state Sen. David Bates, a Barrington Republican. The intention is to give investors an incentive to put their money in local businesses.
Bates, along with Democratic Sen. William Walaska, has also proposed legislation that would reduce the minimum corporate franchise tax from $500 to $100 per year.
Bates says reducing the tax paid by businesses would boost small and startup businesses.
State lawmakers are entering the fifth week of their annual legislative session.