It also includes real estate costs, utilities, labor costs, and taxes that are considered significant factors in business climate evaluation. In this area, Rhode Island has the largest prospect to enhance its reputation in national rankings. Rhode Island’s comparatively lofty tax burden and intricate regulatory structure are two major areas that have made business impossible within the island (Bardach 23). Several proposals have been forwarded with the intention of easing the pressure on businesses. One of these suggestions involves the introduction of tax credits to ease the tax burden and encourage local and foreign enterprises to thrive in the island. The following sections attempt to discuss the pros and cons of introducing such a macroeconomic policy as well as its effects and viability within Rhode Island.
Elements such as a high tax burden and intricate regulatory setting have made it challenging the government to develop an appealing environment for commerce. Rhode Island’s business tax burden can be considered one of the highest globally. Based on the KPMG study entitled “Location Matters”, Rhode Island recorded higher than normal rates for its tax rate index at 28.4%. This figure was significantly higher than all the New England states (Bardach 26). The workforce quality, cost of doing business and business climate in Rhode Island has been cited by different surveys as being below standard while it has performed exceedingly well in terms of quality of life, access to capital and education levels.
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Rhode Island is particularly famous among economic circles for its inability to provide a viable environment for starting and conducting business. The cost of doing business involves much more than just registration logistics. …
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