Rhode Island Budget Cutters Reminded Of Franchising’s Importance

TradingMarkets.com:

Rhode Island isn’t the only state facing big budget troubles.

There are 28 states with deficits totaling $38 billion, according to the Center on Budget and Policy Priorities, a research institute in Washington, D.C.

The situation is not as bad as in fiscal year 2004, when state revenue was off by up to $85 billion. Back then, many states filled budget holes with tax increases, according to a report in Inc. magazine that’s based on the institute’s study.

‘Corporate income and other business taxes were among the most frequently raised, along with state sales taxes,’ the magazine reported.

This time around, many states are slashing financing for programs and services, including education, health care and state parks. Legislators are also looking to raise additional revenue through higher fees and to eliminate loopholes and tax credits that benefit businesses.

Here’s one example… read on.