Republican Block details plans to ‘fix’ R.I. economy at gubernatorial campaign event

Feb. 26--CRANSTON, R.I. -- Calling Rhode Island a state that is "in peril," businessman Kenneth J. Block outlined his plans Tuesday to revive the local economy with a mix of savings, more competitive tax rates and a makeover for the way "your government does business."

The Republican candidate, already running for governor, billed the event at Taco Inc. as a formal campaign launch -- one that allowed him to provide what he said is far more detail than other candidates have as they talk about the economy.

And that was not the only way the Barrington software engineer tried to set himself apart in a field that includes one other Republican and four Democrats.

"I am an engineer," he said. "Engineers know how to get things done, engineers know how to make things work, engineers fix things. I see opportunity in Rhode Island's crisis, I see an opportunity to make Rhode Island work."

Speaking to more than 70 supporters and nearly a dozen reporters and photographers, Block said the way to fix Rhode Island's economy is to "make taxes fair" and "make them competitive" -- something he would accomplish by:

Cutting the corporate tax from 9 to 7 percent.

Freeing new businesses from paying the $500 minimum corporate tax.

Raising the threshold for payment of inheritance taxes from $921,655 to $2.5 million and reducing the top rate from 16 percent to 12 percent.

Provide a capital gains tax exemption for investments held at least three years in Rhode Island-based businesses.

Reducing the motor vehicle excise tax and offsetting the loss to cities and towns with increased state aid and local savings that cities and towns would have to achieve through "shared services."

Fixing the temporary disability insurance program that provides income to people who are unable to work, by addressing "very high utilization rates" that suggest either a "very sick work force" or "systemic problems."

Fixing the unemployment insurance program that provides income to people who have lost their jobs, by stopping overuse by seasonal employers.

His plan would also touch on the state sales tax -- reducing it in "a border community" to see what happens. That stops far short of the repeal or statewide reduction some are seeking, but Block said he would assess the impact "before we try it statewide."

The proposals would cost more than $64.5 million, according to his campaign staff -- an amount Block described as "a pittance."

"Is there a person in this room that doesn't think that we can find a hundred million dollars in an 8.5-billion dollar budget?" he said.

Block said the most exciting aspect to his plan is that it would put money "back into the pockets" of working Rhode Islanders. Based on the changes to the car tax and the temporary disability insurance program, he said the "average dual-income family" would save $1,000.

While stressing that the key issue facing Rhode Island is its economy, Block said it is a "status quo" political culture of "mismanagement and backroom deals" that put the state where it is -- a place he described as "the national hall of shame."

"We have the country's highest unemployment rate, and we have one of the worst economic environments, and our elected officials do little or nothing to correct this problem," he said. "The evidence ... surrounds us. We see it in the empty 'Superman building' in downtown Providence, we see it in the empty storefronts scattered across the landscape of our great state."

He said the key issues in 2014 revolve around questions such as: "Do we accept the failed status quo, or do we fix this desperately broken state? ... Are we ready to understand that substance is more important than electing personalities and career politicians?"

When asked how he would get support for his plans from the General Assembly, Block said he would use "the bully pulpit" to push key issues, such as restoring Ethics Commission jurisdiction over the Assembly, giving the governor a line-item veto and abolishing the so-called "master lever" that allows people to enter the voting booth and choose candidates from one party with the stroke of a pen.

The Moderate Party founder turned Republican seemed to make a strong impression on those who attended.

Terry Gorman, executive director of Rhode Islanders for Immigration Enforcement, said he was undecided when he arrived but was leaving as a Block supporter.

"I don't think there's any candidate, out of all five or six of them, that could take advantage of the bully pulpit more than Ken Block," he said. "Nobody else seems to exude that much enthusiasm for change."

But the campaign for Cranston Mayor -- the other Republican in the race -- countered, when asked about Block's plan, that it echoes Fung's call for a review of the state's tax system as a prelude to making changes.

The Fung campaign also noted that Block held his formal launch at the venue Fung chose in November.

Block said he looked at several businesses and chose Taco because it was available and had the space.

Taco owner John Hazen White Jr. said the event should not be construed as an endorsement.

"I do not endorse candidates and I've been very clear about that," he said. "I just want somebody to win the race who has a plan that can be implemented, and be successful."

With reports from staff writer Katherine Gregg

___

(c)2014 The Providence Journal (Providence, R.I.)

Visit The Providence Journal (Providence, R.I.) at www.projo.com

Distributed by MCT Information Services