PROVIDENCE, R.I. - CVS Caremark Corporation would be forced to reevaluate its long standing ties to the Ocean State, if lawmakers adopt Governor Chafee's budget plan to reduce a tax credit that benefits the pharmacy giant.
That was the warning issued by Robert Goldberg, the Woonsocket-based company's lobbyist, at a Tuesday Senate Finance Committee hearing on the tax proposal.
"The Jobs Development Act is a critical part of CVS Caremark's continued investment in the state," Goldberg said. "Any reduction made to the tax credits available to companies creating and maintaining jobs in Rhode Island will result in our serious examination of both our current concentration of jobs here as well as an evaluation of any future job growth in the state."
Chafee proposes reducing the tax break by 50 percent over two years, saving the state $2.4 million in the budget year starting July 1.
The reduction would help cover some of the revenue lost from the governor's primary tax proposal: reducing the state corporate tax.
Chafee wants to reduce that tax rate from 9 percent to 7 percent in three years starting January 2014. Goldberg said CVS Caremark supports that proposal.