FRIAS: IGT DEAL IS BAD ECONOMIC DEVELOPMENT
In an opinion column, entitled “Paying Too Much for IGT’s Jobs” published this week in the Cranston Herald, Warwick Beacon and Johnston Sunrise, R.I. Republican National Committeeman Steven Frias argues that the IGT no-bid deal is bad economic development policy because Rhode Island is paying a subsidy of least $14 million annually to pay for about 1,000 IGT jobs which only generate about $8.1 million in direct tax revenues.
Here is an excerpt:
“An economic development policy which requires taxpayers to give a company a subsidy which exceeds the amount tax revenues directly generated by that company is fiscally unwise. A special economic development deal for a single company with close ties to a powerful politician is unfair. IGT’s no-bid billion-dollar deal can be called many things but it cannot be called cost effective economic development or fair to taxpayers.
Because Rhode Island’s business climate has been so bad for so long, politicians have routinely resorted to giving taxpayer subsidies to select businesses to come and stay here. However, the best economic development policy for Rhode Island is one that lowers the burden of taxation and regulation for all.”