Former Gov. Lincoln D. Chafee had an oft-repeated mantra – improve the overall conditions for business and hide the incentives, and companies will beat a path to your door.
That approach arguably may have worked during his tenure as mayor of Warwick. But it didn't go far during his term as governor.
Enter Gov. Gina M. Raimondo, who last week rolled out three more incentive programs to attract and grow businesses in the Ocean State: Innovation Vouchers, Industry Cluster Grants and Innovation Network Matching Grants. When seen as supplements to the $25 million I-195 Redevelopment Fund and the Rebuild Rhode Island Tax Credit, they present a significant, if limited, program to attract investment into Rhode Island.
There is no doubt that the overall tax climate, in the form of the corporate or personal income tax rate, the estate tax or the property tax, plays an important role in whether a company locates or grows here.
But incentives play an important role, often as a tie-breaker. So if Rhode Island wants to be competitive with neighboring states, it must have a tool kit to offer.
Given the state's size and modest means, the tools must be tailored to the assets we have. Rhode Island will never be able to offer the $23 million that Georgia reportedly gave Daimler to move its U.S. headquarters from New Jersey.
It is important, however, that if the tools do not succeed in moving the needle soon, there should be no hesitation to try new approaches. For despite recent job gains, urgency must be the watchword for the state's economic health. •
The best way to produce the necessary funds to repair RI’s bridges and roads is to reduce RI’s fuel tax on gasoline and diesel fuel to 20 cents per gallon. Many vehicles that now pass through RI would stop and buy their fuel in RI because RI would have the lowest fuel prices in New England. Many nearby Massachusetts and Connecticut drivers would buy their fuel in RI. Local truck stops and gas stations located near Interstate highway ramps would expand and improve their facilities to attract customers. Employment at RI’s fueling stations would increase and every RI driver and business would receive a tax cut. The cost of goods and services in RI would decrease. The number of gallons of fuel sold in RI each year would more than double and increase RI’s fuel tax revenues by over 30%. Over $175 million would be available each year to fund the repair of RI’s bridges and roads.