Chafee Steps Up Criticism of Raimondo’s Economic Development Policies
Monday, May 01, 2017
In a letter sent to members of the Board of the Commerce Corporation, former Governor Lincoln Chafee warned about the failed strategies of funneling millions of incentives to Wexford on the 195 land. Chafee, who served as Governor of Rhode Island from 2011 to 2015, points to a New York Times editorial that warns that such subsidy programs are "foolhardy."
Chafee says that the money going to corporate subsidies could be better used for improving roads, funding college education and lowering the car tax.
In February, appearing on GoLocal LIVE with GoLocal News Editor Kate Nagle, Chafee said the Raimondo’s transfer of taxpayers' dollars to billion dollar companies such as General Electric and Johnson & Johnson was flawed.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“I have never liked corporate welfare. It's unfair to existing businesses…some out of state business comes in and you give them the candy store. I just don’t like it," said Chafee.
SEE GoLocal LIVE Video BELOW.
Read Chafee's Letter to RI Commerce Corporation Board:
Dear Board Member:
Several years ago the New York Times studied taxpayer incentives used to attract companies to communities. The Times' conclusion, summed up in the editorial below, was that this strategy is, "foolhardy," "shortsighted," and "senseless."
On Monday, the Raimondo administration asks you to approve almost $40,000,000 in taxpayer dollars for projects on the former Rt. 195 land. The NY Times study said that, "...improving education, transportation and other public services.. would have a far better shot at promoting real economic growth."
The Commerce Corporation would be wise to heed this advice and suggest redirecting the $40,000,000 to substitution of the anti-business truck tolls, or for lowering state college tuitions, or for helping the cities and towns lower the car tax.
The Times wrote that, "The senseless race to give away billions in subsidies is, of course, hard to stop when elected leaders think a pledge of potential jobs might help in their next election."
And, "The trouble with targeted incentives is that they are little more than transfers of wealth to a handful of powerful corporations from all other taxpayers, including other businesses."
Again, these are not my words: "foolhardy," "shortsighted," "senseless." Where have we heard this before?
Sincerely, Lincoln Chafee
READ THE NEW YORK TIMES EDITORIAL BELOW
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