RI budget proposal includes new taxes

PROVIDENCE, R.I. (WPRI) -- If passed, the state's newly proposed budget would include new taxes on luxury clothing, pet services and car washes.

"I think people cannot afford it right now, it's unfortunate the state is having such a hard time, but people can't afford to pay for it," said one taxpayer.

Cara Gilligan is against the new taxes as well.

"More people will just end up at home washing their own cars."

The food and beverage industry would escape a proposed tax hike.

"A lot of us have had expansion plans on the back burner pending the outcome of this," said Gregg's owner Bob Bacch.

Governor Chafee tells Eyewitness News that he's disappointed the food and beverage tax will not be included.

"To expand the sales tax but also to lower it, we are expanding it, but not lowering it."

Bob Bacon says the burden needs to be shared and that the restaurant industry is already contributing.

"There is already a meals tax in place and it generates significant revenue for cities and towns."

The House is scheduled to vote on the $8.1 billion spending plan next week.