In response to Governor Gina Raimondo’s State of the State speech on Tuesday, Rhode Island members of the National Federation of Independent Business have penned a statement expressing frustration.
Director of the group’s Rhode Island branch, Bill Vernon, said the state is one of the least business-friendly in the country, a problem he blames on a combination of federal and state policies.
“When you continue to put mandates onto business whether it be health care mandates, whether it be mandating wages, whether it be mandating leave- all of those things add to the cost of doing business, the cost of job creation,” Vernon said.
Asked what the governor could do to help small businesses get back to pre-recession employment levels, Vernon suggested reducing unemployment insurance taxes, a move he described as a priority for his members.
“We have some of the highest unemployment insurance in the country,” said Vernon. “We need to lower those costs of businesses that have not had layoffs and lower their unemployment insurance cost.”
Vernon said the 700 members of his organization have an average of five employees, and unemployment insurance taxes can be a barrier to making new hires.
Governor Gina Raimondo, in her annual address, touted Rhode Island as a place starting to shed its reputation for unfriendly business practices. She cited companies like GE and Johnson & Johnson, which recently announced plans to open facilities in Rhode Island. The governor also mentioned local pen manufacturer A.T. Cross and health care technology company Virgin Pulse as examples of local businesses that have chosen to stay and grow in Rhode Island. Raimondo said the state’s economy is heading in the right direction.