Some Rhode Island lawmakers have little or no appetite for Gov. Lincoln Chafee’s proposal to raise the meals tax to 10%.
State Rep. Jan Malik, D-Warren, told the Associated Press that the tax hike on dining out would hurt businesses and make neighboring states, where taxes are lower, look more competitive.
Chafee, an independent, wants to raise the tax to 10% from 8% and earmark the estimated $40 million in additional revenue to public schools.
The state’s projected budget deficit is $117 million.