Progress Report: Horses and Bayonets for the Win; Profiles in Candidacy; Alexion Gets Tax Break, Amount Unknown


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President Obama makes his case for re-election at DNC

Good news, Democrats … Obama easily won the rubber match debate last night. And as a bonus, the president’s foreign policy poise coupled with Romney’s obvious lack of similar acumen will likely become a talking point for liberals and conservatives alike during the final 14 days.

“Obama succeeded because he conveyed his unique view of the world from the Oval Office,” according to Taegan Goddard of PoliticalWire. “For undecided voters watching, all they probably heard was that he’s the commander-in-chief. And that’s what Team Obama wanted.”

Goddard calls it “President Obama’s best moment in the campaign so far” and I think that’s a fair assessment.

Both the Huffington Post and the Drudge Report lead with stand alone Obama shots this morning. HuffPo headline: “Chief in Command” Drudge headline: “Grand Finale”

In an unnecessary attempt at balance, here was the best Politico’s lead piece could offer as far as positives about Romney’s performance: “But many Republicans – and some neutral commentators – believe Romney held his own in a difficult format. His aides think he passed the acceptability test and that Obama didn’t disqualify him (and Republicans desperate for a win were sighing deeply that Romney didn’t have any gaffes).”

The New York Times eviscerates Romney’s performance and campaign in an editorial this morning. And instant polls largely agreed that Obama won hands down.

But watch this video clip of Obama’s instant classic about horses and bayonets to see for yourself:

Speaking of debates, we get to see Senator Sheldon Whitehouse finally square off against his conservative carpetbagging challenger Barry Hinckley. I’m really looking forward to this debate as it pits a real progressive vision for the future against the ideas of Wall Street and the 1 percent.

Speaking of Wall Street …. the Journal’s Mike Riley profile falls a little flat, I’m sorry to say …. the candidate goes unquestioned in saying his experience as a Wall Street hedge fund manager makes him uniquely qualified to address the nation’s economic woes. Actually, it makes him uniquely unqualified to fix the economy. Electing a hedge fund manager to fix the economy would be like employing an arsonist to fight a fire!

That said, we’re even more disappointed with the profile of Abel Collins – his platform and biography are every bit as relevant to Rhode Islanders as is Riley’s, if not more so. (We also appreciate the ProJo mentioning RI Future in the piece!) While this website might endorse Langevin, we think it is very important that Rhode Islanders understand Collins’ politics. I’m pretty sure a plurality would largely agree with his philosophies.

This is great writing by Andy Smith on a story we covered yesterday: “The Rhode Island Economic Development Corporation on Monday unanimously approved a state tax incentive for Alexion Pharmaceuticals Inc. that would reduce its corporate tax rate from 9 percent to 6.75 percent. How much the tax break will cost the state is still unknown.”

While we think it’s ridiculous that the ProJo invests so much effort reporting on the youthful indiscretions of the governor’s son, we fully stand behind the newspaper in its lawsuit against the State Police for records the police refuse to make public.

Notice in the four above pieces, the disparity in emotions the ProJo has riled in me already this morning! Now that’s a great newspaper! Us Rhode Islanders who love the ProJo should be demanding that Belo not cut any more resources from the single most important force in our local marketplace of ideas.

File this one under stuff only reporters care about: WPRO says Jim Hummel broke the PEDP story but this timeline indicates Dan McGowan was the first to report on the story.

Pharmaceutical Company Asks EDC for Tax Break


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Complain all you want about Rhode Island’s comparatively high corporate tax rate – at 9 percent we are one percentage point higher than Massachusetts and two higher than Connecticut – but our state tax code also has some built-in benefits for businesses that actually create jobs.

Alexion Pharmaceuticals, which now employs almost 200 people in Smithfield making a medication that treats a rare blood disease, hopes to take advantage of this tax incentive. Tonight, the Connecticut-based company will ask the EDC to lower its RI tax rate from 9 percent to 6.75. The request comes under the Jobs Development Act, a 1994 law that lowers a businesses corporate tax rate when it creates new jobs. Alexion created at least 10 new jobs a year between 2007 and 2009, the company says.

Alexion, which has invested about $200 million in the Smithfield manufacturing plant since 2006, reports no profits in Rhode Island during that time period, says a story in the ProJo. But business beat writer Kate Bramson reports that the tax break could be a boon in future years too, so long as Alexion retains at least 92 local emplolyees.

I’m not sure if the request implies that Alexion intends to move a portion of its hefty profits from Connecticut (where it presumably pays a 7 percent rate) to Rhode Island – where, with EDC’s blessing tonight, it could pay a quarter of a percentage point less (it could also mean the business is for sale).

I’m wondering if the EDC board could make showing local profits a contingency of its approval? According to EDC’s website, the Jobs Development Act “benefit is subject to a finding of revenue neutrality and vote of the RIEDC Board.”

In total, the Jobs Development Act, passed in 1994, costs the state $16,394,619 in tax dollars last fiscal year – that’s almost half of the $34 million the state gave away in total tax credits, according to a report from the Division of Taxation. CVS alone saved $15,446,563 because of the law. Electric Boat is the second biggest beneficiary, saving $602,160. Citizens Bank saved $120,402; AAA saved about $110,000; United Natural Foods saved $108,979; and Connecticut-based RITE Solutions saved $8,403.