Taxes get everyone’s attention, especially when they are changing.

Rhode Islanders, struggling under one of the heaviest tax burdens in the country, should pay special note now because of proposals that could change who pays what to the state and federal governments.

In Washington, the Obama administration is proposing $275 billion in tax cuts, about one-third of its massive economic stimulus package that is making its way through Congress.

At the State House in Rhode Island, a panel set up by Governor Carcieri is putting the final touches on plans to recommend a shift in income, business and sales taxes.

There is still a long way to go before either plan becomes law.

But an early analysis suggests the Obama tax cuts are too weak to quickly jolt the U.S. economy to expand. And the tax changes being suggested by the Carcieri group seem too bold a shift in the amounts that different income groups pay without a cut in the overall burden.

First, the federal plan.

The core of the tax cut plan in the bill that passed the House last week is a credit of up to $500 for individuals and $1,000 for families that could take effect quickly by cutting the amount of money withheld from paychecks. That’s a good idea. It will put money in people’s hands now to spend, invest or save. It will also boost consumers’ confidence.

But here’s the problem. Two-thirds of the money in the $825-billion Obama plan goes for spending on roads, bridges and other projects to put people back to work and to stabilize state and school finances. That’s a worthy goal, especially in a state such as Rhode Island with 10 percent of the work force, or 56,800 people, out of work.

But the money will be slow to arrive. Consider the bureaucracy that has to be set up to deliver it. The Congressional Budget Office estimated that about half the amount in the stimulus package that is not tax cuts will not be spent until next year, or later. Also, some of that money inevitably will be wasted on pork-barrel projects that don’t meet a significant public need or will not be built or go into effect quickly.

Sure, there are other targeted tax cuts in the plan for first-time homebuyers, students and their families who pay college tuitions and low-income people who use the earned income tax credit. All of them are worthwhile.

But if the main mission is to use public money to boost the economy as quickly as possible, the most effective way to put money in people’s pockets is through income tax cuts. When the U.S. Senate considers the bill, it should shift more of the $825 billion to that area.

While the federal plan proposed by the popular new president is already well advanced, the state recommendations are still being finalized. The tax work group, headed by Gary Sasse, director of the state’s Department of Revenue, plans a final meeting on Wednesday before sending its recommendations to Carcieri. Then the governor will have to decide which, if any of the proposals he plans to push forward. And then the General Assembly will do its review.

As reported by Journal staff writer Neil Downing, the panel is preparing to recommend a restructuring of the income tax system that would, in effect, lower taxes for some of the state’s highest-income taxpayers. In doing that, more of the burden would fall on middle-income taxpayers.

The idea is to make the state more competitive to attract and retain business owners and wealthy residents who create jobs and invest in the state. Too often now, Rhode Island is seen as the state that takes the biggest bite from what job creators earn.

The goal is sound, but in the middle of a deep recession that may last well into next year, it is not wise to add to the tax burden of the middle class, which is made up of the consumers who spend money. Economists say two-thirds of economic activity is based on consumer spending.

The proposals also include a drop in the state’s corporate income tax rate to 8 percent from the current 9 percent, a clear signal to businesses that state leaders have heard their complaint that Rhode Island’s rate is too high and among the highest in New England.

There’s also a proposal to decrease the statewide sales tax to 5 percent from 7 percent, while broadening the goods and services that would be covered.

I understand the need to put Rhode Island’s rate in line with other, especially neighboring, states, but I’m not sure of the impact the proposal would have until all the details are worked out. It needs more study.

In fact, that may be the greatest accomplishment of the 20 experts who gave up their time over six months to study the tax code. Their recommendations will set the table for public officials and taxpayers to dig into a serious debate about taxes.

Everybody agrees there must be changes, if not this spring, then certainly by the middle of next year as the state tries to emerge from a deep recession, ready to grow again.

A new tax code that is fair, transparent and competitive is a key to making Rhode Island a leader, not a laggard.

jkostrze@projo.com