A bipartisan bill to reduce Rhode Island's personal income tax rate for middle-income earners — those making between $68,000 and $155,000 annually — from 3.75 percent to 3.25 percent has gained unexpected momentum in the General Assembly, with co-sponsors from both parties citing the need to provide relief to working families squeezed by inflation and high housing costs.

The bill, introduced by Rep. David Place, R-Burrillville, and co-sponsored by six Democrats including Rep. Evan Shanley of Warwick, would reduce state income tax revenues by an estimated $87 million annually. Supporters argue the cut would be largely offset by increased economic activity and consumer spending, and point to neighboring states that have reduced income taxes without experiencing fiscal crises.

"Rhode Island's middle class is being hollowed out," said Rep. Place. "Young families are leaving for New Hampshire, Florida, and the Carolinas because they can't afford to live here. A meaningful tax cut sends a signal that we want them to stay."

The proposal has drawn cautious support from the Rhode Island Public Expenditure Council, which noted that the state's structural budget deficit — estimated at $280 million over the next three years — must be addressed alongside any tax reduction. "We support tax relief in principle, but the math has to work," said RIPEC's Michael DiBiase. "You cannot cut revenues without either cutting spending or finding offsetting revenue elsewhere."

Progressive Democrats have expressed skepticism, arguing that the revenue would be better spent on housing assistance and childcare subsidies. But the bill's unusual bipartisan support suggests it may have a better chance of passage than previous tax cut proposals, which typically died in committee along party lines.

House Speaker Joseph Shekarchi has not committed to bringing the bill to the floor but acknowledged it has "significant support" among the membership.