PROVIDENCE — Governor Carcieri on Thursday made a personal plea to the House Finance Committee to pass his proposals for sweeping changes to Rhode Island’s tax structure, saying they would help create jobs amid a recession and high unemployment.

It was only the third time in his nearly seven years as governor that Carcieri appeared personally before the committee — and there was a reason for that, he said.

“The decisions you make this year are probably going to be the most important, consequential of the last four decades” and perhaps in the state’s history, Carcieri said at the State House hearing.

Rhode Island “has unfortunately perpetuated, really, an unsustainable spending and tax structure. As a result, we’ve become an uncompetitive, high-cost state struggling right now to create jobs for our citizens.”

Carcieri added, “We urgently need to dramatically change, in my judgment, our business climate. Our families — all families — need help, and jobs and economic growth are the answer.”

By phasing out the corporate income tax, lowering personal income-tax rates and making other such changes, Rhode Island could signal that it is a business-friendly state, a place to grow and expand business and create jobs, he said.

Rhode Island’s personal income tax tops out at 9.9 percent, one of the highest in the nation. And its 9 percent corporate income-tax rate is on track to be the highest in New England next year.

Partly as a result, some small- and medium-size businesses are leaving the state, Carcieri said. “The owners, the investors who create the jobs we so desperately need, they’re the ones that we have been driving away and making it very difficult on with our tax policies,” he said.

The hearing was held on tax aspects of Carcieri’s proposed budget. He spoke for about 40 minutes, and there were indications during his presentation and afterward that his plans face a rough road ahead.

The state is looking at a deficit of $590 million for the year that starts July 1. And more deficits are forecast for future years, said Rep. Steven M. Costantino, D-Providence, the Finance Committee chairman.

In an interview, Costantino said he favors making Rhode Island more competitive from a tax standpoint.

“But the challenge is, how do you do that in an environment where the state is losing significant revenues,” while also considering major changes to government employees’ pensions, he said.

At the hearing, Rep. Thomas C. Slater, also a Providence Democrat, sought assurances from Carcieri that his proposals would result in job creation. “Have we any guarantee … that this will help raise jobs that help those that need it most, the poor?” Slater asked.

Carcieri responded, “There’s no guarantees in life. You know that.” But he said that the states that are currently seeing growth in population, jobs and revenue “are those that have created an environment for business to prosper, and they are the low-tax-burden, pro-business states.”

The hearing, which lasted more than three hours, included testimony from more than a dozen people. Some favored Carcieri’s plans, others did not.

John M. Rhodes, senior principal with Moran, Stahl & Boyer, of Lakewood Ranch, Fla., which helps businesses decide where to locate, said the state’s tax climate contributes to the perception that “Rhode Island is not interested in attracting new business. … Changing the tax policy will start to change the perception.”

Alfred J. Verrecchia, chairman of Pawtucket-based Hasbro Inc., a global maker of toys and games, said in written testimony that the state must “dramatically change the perception of Rhode Island from ‘tax hell’ to ‘business friendly.’ ”

Opponents said the state cannot afford Carcieri’s proposals, especially given Rhode Island’s budget problems.

Karen Malcolm, executive director of Ocean State Action, a coalition of labor unions and advocacy groups, said previous state tax cuts have not worked. “The policies we’ve been following have not brought the promised jobs,” she said.

Instead of phasing out the corporate income tax, for example, Rhode Island should instead seek changes to local property taxes, which represent the single greatest tax burden for business, she said.

And to improve Rhode Island’s overall business climate, the state should focus on other areas, such as fixing crumbling roads and bridges, she said.

Rick Harris, executive director of the Rhode Island chapter of the National Association of Social Workers, said Carcieri’s proposals would drain away tax revenue at a time when it is most needed for education, health care and other programs. “If you’re taking more money out of the system, how are we going to meet this need?” he said.

Carcieri on Thursday posted a video online that outlines his position for state tax reform:

www.governor.ri.gov

ndowning@projo.com