A late correction to an April 15 interview on sales taxes

Andres Carbacho-Burgos of Moody’s Economy.com writes in to credit Nesi’s Notes reader Mario with catching a mixup in his April 15 interview with me about sales tax policy:

Mario is correct to point out that Massachusetts and Connecticut don’t have local sales taxes, so I thank him for bringing this to my attention.

One of the points that I often state when discussing Rhode Island’s tax policies is that even though Rhode Island’s state sales tax rate is higher than the simple average rate for U.S. states, once local sales tax rates are added in, Rhode Island’s combined state-plus-local sales tax rate is slightly below the simple state average and substantially below a population-weighted state average. So claims that Rhode Island’s sales tax burden is excessive are unfounded.

Unfortunately, at the moment of the interview, I mixed up the rest of the U.S. with Connecticut and Massachusetts, which don’t have local sales taxes and which thus also have lower sales tax burdens than the U.S. average. My apologies for that inaccuracy, and I hope this correction is brought to the attention of anyone else who commented on the blog entry.

Good job Mario, and kudos to Andres for setting the record straight.

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