Carcieri's tax cuts raise concerns

Providence (wpri) - Tax cuts for some businesses and individuals are the center of Rhode Island Governor Don Carcieri's proposed budget. But state officials say about a quarter of Rhode Islanders would see a tax increase under the plan.

Carcieri proposed a series of tax cuts in a budget released Tuesday, including eliminating the corporate income tax by 2014 and reducing the top personal income tax rate from 9.9 percent to 5.5 percent.

The governor, a retired business executive, argues that cutting taxes will attract new businesses and help alleviate the state's 10.3 unemployment rate.

Fiscal analysts have also questioned whether Rhode Island canafford the tax breaks as state incomes dips during the downturn.