Republican candidate for lieutenant governor John Loughlin is voicing strong opposition to a proposed 3% surtax on incomes over $1 million, an idea backed by Democratic gubernatorial candidates, and is instead promoting what he calls a “millionaire magnet” strategy aimed at attracting high earners and businesses to Rhode Island.
Loughlin argued the proposed tax would discourage investment and economic growth, pointing to migration data from Massachusetts and New York that he says shows high-income residents relocating to lower-tax states. He cited figures indicating Massachusetts saw billions in adjusted gross income leave the state following its surtax, while New York has experienced similar outflows in recent years.
“Rhode Island doesn’t need fewer millionaires — we need more,” Loughlin said in a statement, adding that higher taxes could shrink the state’s tax base and impact job creation.
As an alternative, Loughlin proposed a series of incentives designed to attract wealthy individuals and business owners, particularly those operating pass-through entities such as S-corporations and LLCs.
His plan includes:
- Per-job tax credits for businesses that create or maintain full-time jobs in Rhode Island, with incentives tied to local hiring and workforce investment.
- Expanded charitable giving incentives, including larger state-level deductions and targeted tax credits for donations to Rhode Island-based nonprofits, schools and community organizations.
Loughlin said these measures would encourage economic growth while increasing private-sector support for local institutions.
He also pledged to work with state lawmakers to block any version of the proposed surtax if elected, framing the issue as a choice between competing economic approaches.
The millionaire’s tax proposal remains part of broader discussions around state revenue and affordability, with supporters arguing it could generate funding for public programs, while opponents warn of potential economic consequences.
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