NEW: Block, Fung Spar Over Taxes, Ohio

NEW: Block, Fung Spar Over Taxes, Ohio

The Rhode Island Republican gubernatorial campaigns are trading shots over taxes -- and Cranston Mayor Allan Fung's TV ad shot in Ohio -- with the primary three and half weeks away. 

On Thursday, the Fung campaign issued a statement criticizing opponent Ken Block's "proposed tax increase on small business" following their joint appearance at an agriculture and food industry forum on Wednesday.  The Fung campaign stated that "Block’s promise of support for businesses hypocritical given unemployment tax increase proposal."

The Block camp fired back - and went on the offensive -- following Fung's release on the tax issue.

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“Allan Fung has no clue what he is talking about,” said Block. “This is pathetic attempt to distort the facts and shift attention away from his misguided decision to film a commercial in Ohio that supposedly highlights Rhode Island businesses.”

Fung Hits Block on Taxes

Fung issued a release Thursday stating that Block was "promoting a tax increase on businesses that depend on seasonal employees, which are common in the tourism, agriculture and restaurant industries," following an industry forum on August 14 to discuss ways to promote food and agriculture related business in Rhode Island.

“I grew up working after school and weekends bussing tables and washing dishes in my parents’ restaurant,” noted Fung, “and I understand the struggles facing these small business owners.  It is hypocritical and unconscionable for Ken Block to appear before an industry group and claim to support their efforts when the centerpiece of his campaign includes a tax increase on those same businesses for unemployment insurance.  I have a proven record of standing up for taxpayers.  We have had three straight years without a tax increase in the City of Cranston because I know how to protect taxpayers and make government more efficient.  Mr. Block, however, would threaten small businesses with higher taxes and that is just wrong.”

“I find it shocking that Mr. Block would propose a tax increase on any industry,” continued Fung.  “I have a plan to reduce taxes on Rhode Island businesses to make our state one of the most business friendly in the northeast, while Mr. Block would drive agriculture, construction, tourism and other season business out of the state.  The aim of government should be to help all industries and not to pick the winners and losers.  I have a proven record of reform.  We stabilized finances and went three years without a tax increase and brought 1,000 new jobs to the City of Cranston.  As Governor, I will do the same for the State of Rhode Island."

Block Responds

“Allan Fung is defending the worst ranked unemployment insurance system in the United States. He is defending the status quo, where non-seasonal employers are disadvantaged and forced to subsidize the payrolls of companies that abuse the program," said Block.  "This is anti-business, and it’s surprising to hear from a Republican.”

“When we fix the unemployment insurance system, we will bring down taxes for the vast majority of businesses, and we will make Rhode Island a more competitive place to do business,” said Block. “Allan is either confused or intentionally pandering to companies that abuse unemployment insurance and drive up costs for everyone else.”

Block reiterated his support for unemployment insurance reform.

“It is ridiculous for Allan Fung to claim that unemployment insurance reform is a tax increase,” said Block. “This is a smart pro-business reform, but Allan would rather pander for votes than take the steps necessary to improve Rhode Island’s economy. That’s what insiders like Allan Fung do - they avoid difficult decisions to prolong their own political careers. Rhode Islanders are sick of it.”

On Thursday, the Block campaign issued a statement on Fung backing out of the State of the State debate that was scheduled to be taped Thursday evening.

“This debate was scheduled weeks ago and we were informed at the last minute that it has been canceled because Mayor Fung is traveling,” said Block campaign spokesperson Jeff Britt.  “Is he going back to Ohio to film another Rhode Island is open for business television commercial?”

Fung filmed a commercial at Tommy’s Diner in Columbus, Ohio.  The commercial focused on the Mayor’s message of Rhode Island being open for business.

“Nothing exemplifies the old way of doing business than producing your television ad in your media firm’s back yard in Ohio, while talking about generating business opportunity for Rhode Island,” said Britt.  “Of course, this is the same insider candidate who took money from police unions while negotiating their contract as Mayor of Cranston and didn’t see why people got upset.  Mayor Fung who himself is a former lobbyist, is so deeply politically entrenched that he has become part of the problem and not the solution Rhode Islanders need as Governor.”