WARWICK – A week before the Sept. 13 gubernatorial primaries, a Greater Providence Chamber of Commerce survey showed that 70% of those polled already knew which candidate had their vote.
That survey drew from 430 individuals in the Rhode Island business community, ranging from workers at small businesses to some of the state’s largest employers, who registered for a Chamber-hosted forum at the Crowne Plaza Providence-Warwick on Thursday morning.
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At the panel, gubernatorial hopefuls had what was possibly their last chance to convince the remaining 30% of undecided voters in the room, or sway those who indicated they had already made their choice, as Chamber of Commerce President Laurie White led a discussion centered around how the candidates would support businesses and the state’s economy.
Candidates on the panel included Democrats Gov. Daniel J. McKee; R.I. Secretary of State Nellie M. Gorbea; former CVS Health Corp. President Helena Buonanno Foulkes; community organizer Dr. Luis Daniel Muñoz; former R.I. Secretary of State Matt Brown; and Republican businesswoman Ashley Kalus.
Three overarching questions focused on the candidates’ visions for creating a successful Rhode Island, business taxes and funding the blue economy.
Business taxes
White questioned the candidates on how closely they align with the Chamber’s position on taxes, which White described as supporting “a fair, equitable and predictable tax system that promotes private sector growth,” which allows people to “keep more of what they’ve earned,” and opposes broad-based taxes of corporations, individuals and specific industries.
Foulkes, Kalus and McKee said they opposed raising taxes on businesses, with Foulkes criticizing the state’s policy of taxing Paycheck Protection Program loans.
FORMER CVS Health Corp. President Helena Buonanno Foulkes, left, speaks as R.I. Secretary of State Nellie M. Gorbea looks on during the Greater Providence Chamber of Commerce Gubernatorial Election Forum held at Crowne Plaza Providence-Warwick on Thursday. PBN PHOTO/JAMES BESSETTE
“This was under the governor’s watch,” Foulkes said. “These loans were taken to make sure we kept people employed, and suddenly, there was a surprise that happened.”
Kalus condemned the state’s personal property tax as “one that crushes entrepreneurship,” and called for lowered property taxes on businesses.
“We need to be more competitive, which means we need to reduce the tax burden,” Kalus said. “You can restructure the tax system in a way that is fair to everyone while helping small businesses.”
McKee also said he would not increase taxes, adding that the state does not have to choose between large and small businesses.
“What we’re going to do is level the playing field between us, Massachusetts and Connecticut,” McKee said.
Opposing this viewpoint, Muñoz, Brown and Gorbea called for varying degrees of increased taxes on the state’s highest earners, and for the state to funnel the resulting revenue into initiatives such as health care, education, housing and child care.
“We should be increasing taxes on the richest 1%,” Muñoz said.
The state must phase out regressive taxes in order to support local economies, he added, and can incentivize municipalities to create property tangible tax exemptions using American Rescue Plan Act funding.
Brown said he is “not close to sharing” the chamber’s stance, adding that 15 years ago, Rhode Island leaders “bought into a failed economic theory” of trickle-down economics.
“We failed our kids, and the price of that was a tax cut for very rich people,” Brown said.
To remedy this issue, Brown said, he would raise taxes of the top 1% by 5 percentage points and establish a business tax system where the amount of taxes a business pays depends on the business’ size, with large corporations paying the highest taxes.
Gorbea said she supports raising taxes on large corporations in order to benefit small business investment, child care and education services, and making “one-time infrastructure investments,” rather than small, repeating fixes.
“If you are doing better, a 1% increase in the corporate tax should be fine,” Gorbea said, “because we’re using it to increase our school reconstitution program, we’re using it to really change the quality of life we have here, make housing affordable … and that is absolutely a fair and wonderful use of our tax dollars.”
Funding the blue economy
Questioned specifically on whether they favor directing $100 million of the state’s federal funding to the blue economy, Gorbea and Kalus agreed with the proposal, while Foulkes said she is “very open to it,” pointing to her proposed plan for a $250 million bond dedicated to blue economy investments.
Muñoz said that as the state dedicates more money to the blue economy, it must emphasize equity and accessibility in government through initiatives such as affordable housing for blue economy workers – a proposal that recently failed in Narragansett surrounding the Port of Galilee project, he said.
McKee said he would ask the General Assembly to use the state’s surplus to lower electric and energy bill costs by at least 4% and use remaining funding to invest in the economy overall.
Brown said he would consider a $100 million investment in the blue economy, but would also need to consider other available federal funds.
The broad strokes
In White’s opening question, as well as in closing remarks, candidates emphasized the broader issues their platforms have focused on throughout the campaign.
McKee defended his year-plus record as governor, crediting his leadership for distinctions such as Rhode Island’s leading economic recovery and historically low unemployment rate.
“We have momentum in that state like we’ve never seen before,” McKee said. “There is no reason for a change in leadership at this time. None.”
The other candidates, of course, say otherwise.
“We need leadership that is actually proven and has delivered results,” said Gorbea, McKee’s main competitor in the polls, highlighting her experience working with small businesses, voting rights and transparency in government.
Foulkes criticized the state’s teacher shortage and poor student test scores, and drew attention to her proposal to invest $1 billion in education and efficiently rolling out federal dollars to municipalities.
For Muñoz, the state needs to focus on supporting micro-businesses, promoting equity and creating sustainable growth that lasts seven generations.
Kalus, meanwhile, emphasized skills training and small business growth, describing herself as a contrast to “career politicians” on the panel.
And for Brown, it’s a focus on shifting tax burden away from working people and onto the state’s top earners while supporting infrastructure that benefits everyday Rhode Islanders, he says.
“The people in power have over and over again funneled public money to large corporations,” he said, but “with new leadership, we can change that.”
The gubernatorial primaries will take place Sept. 13, with the general election on Nov. 8.
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
