Fox comes out against Chafee’s sales tax plan

In a dramatic setback for Governor Chafee, Speaker Gordon Fox has just indicated his opposition to Chafee’s sales tax plan:

Governor Chafee’s proposed multi-tiered sales tax approach is unacceptable.  Particularly offensive are the items proposed on the 1 percent list, such as home heating oil, water for home use consumption and taxes impacting the manufacturing industry.  After speaking with a majority of House members, we will not support the current proposal.

I have been extremely troubled by this sales tax plan since its submission on March 8.  However, I wanted to give our House Finance Committee and fiscal staff the opportunity to carefully review it and provide the public with an opportunity to weigh in, which was done today.  There has also been overwhelming opposition expressed to me by House members, the business community, and by thousands of average citizens who have contacted the offices of House leadership and Finance Committee Chairman Helio Melo. 

The House will not pass the budget in its current form.  We will instead develop alternatives to this proposal and will continue to work with the Governor to amend his budget submission.