In Four Years, Taxpayers Spent $18-Million On Medicaid Assistance For Workers at Rhode Island Companies Receiving Millions in Economic Development Tax ‘Incentives’

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Between the state’s 2014 and 2017 fiscal years, Rhode Island allocated $18-million through its Medicaid-funded Rite Care and Rite Share medical assistance programs to employees working at companies that simultaneously received more than $114-million in state subsidies designed to spur job growth and workforce development.

CVS Health topped the list for total Rite Care and Rite Share expenses, as well as total tax incentives received. According to Rhode Island Unified Economic Development Reports, CVS employees and their dependents utilized $5.7-million in medical assistance during the four-year period in which the Woonsocket-based company also received $63-million in tax benefits.

Since 2008, CVS has received more state subsidies than any other business: $175-million of the nearly $350-million disclosed in the Division of Taxation’s annual reports on tax credits and incentives.

The second and third highest totals for Medicaid-funded benefits were at jewelry maker Tiffany & Company, and submarine builder Electric Boat, with employees and their dependents receiving $4.5-million and $3-million in government-funded health insurance benefits, respectively. Continue reading

What Issues Take Priority and What Gets Shut Out on Sheldon Whitehouse’s Twitter Feed

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In today’s world, tweets by members of Congress can tell you a lot: what they’re prioritizing, how they’re using their political capital, and the messages they want to get out to constituents, colleagues, and the media.

Because of all that, I decided recently to analyze Twitter feeds for the four members of Rhode Island’s Congressional Delegation using a social science research method called coding. Coding essentially means categorizing data to help you draw conclusions from the information you want to evaluate.

In the case of congressional tweets, I created topical areas—such as gun control, climate change, Russia, health care, immigration, and police reform—and tallied up the number of tweets that referenced each issue. Continue reading

General Dynamics Doesn’t Need Money From Connecticut or Maine

[NOTE: A version of this opinion article was published in The Day newspaper, of New London, Conn.]

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General Dynamics is not a poor company.

Far from it.

Like all of the country’s top defense contractors, its stock is trading at record highs. As of this writing, one share in the Falls Church, Virg.-based company costs more than $226, nearly $55 more than tech giant Apple.

General Dynamics’ current market capitalization, a measure of a company’s value, is $67.2-billion, up $14.6-billion from 2016. To put that into context, Maine’s entire gross domestic product was $59.3-billion in 2016.

On a recent earnings call, CEO Phebe N. Novakovic told analysts the company’s revenue last year exceeded $31.7-billion, outperforming the prior year by $412-million. Cash flow for the year was $3.45-billion.

And things should only get better. Continue reading

General Dynamics CEO Calls Republican Tax Law a ‘Happy Event’

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Top brass at defense contractor General Dynamics, owner of New England subsidiaries Bath Iron Works, and Electric Boat, say they are buoyed by the anticipated reduction in their company’s effective tax rate under the sweeping “Tax Cuts and Jobs Act” pushed into law last month by Republican members of Congress and Pres. Donald Trump.

On an earnings call earlier this week, Chief Financial Officer Jason W. Aiken told analysts the company, based in Falls Church, Virg., will likely see its 2017 full year rate of 28.6 percent drop to 19 percent in 2018.

According to a transcript of the call available online, Chief Executive Officer Phebe N. Novakovic characterized the passage of the tax overhaul as “a happy event.” Continue reading

Rhode Island is Still Not Complying With Its Own Law on Evaluating Tax Incentives

[NOTE: This story is part of an ongoing reporting project being developed for Rhode Island Public Radio.]

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Rhode Island appeared to be headed in the right direction in 2013 when it signed into law the Economic Development Tax Incentives Evaluation Act, officially requiring regular analysis of its many “business development” tax breaks to corporations.

But, more than four years on from its enactment, the Evaluation Act has yet to amount to much more than a symbolic victory for the advocates for government and corporate accountability who helped push it through.

Continue reading