Pitching 38
By Steve PoftakMarch 24th, 2010
Curt Schilling (formerly of the Red Sox, ahem) is now seeking a deal for his video game company, reportedly talking with Rhode Island to see what tax incentives might be provided.
His inspiration? The film tax credits which he saw in action in his home town.
Now, Curt’s got every right to get the best deal for his company but he might want to consider a few facts: 1) RI’s corporate tax rate is 9% while Massachusetts was 9.5% and is supposed to drop to 8.75% this year, then to 8% over the next few years, 2) RI’s personal income tax rate is progressive and rises pretty fast — it gets to 7% quickly and tops out at 9.9%.
Not all that appealing is it? But his actions are what you reap with a picking winners and losers approach to incentives. I’d rather see Massachusetts compete across the board for companies by broad-based initiatives and the best educated workforce, not case-by-case packages of incentives.
Entry Filed under: News
2 Comments Add your own
1. Curt Schilling | March 28th, 2010 at 12:16 am
Don’t make the mistake of believing 1/10th of what you read. If you know anything about me as a player, it’s that I did my homework. If 38 Studios moves, there will be many far reaching and impacting reasons for that move.
The most important being the long term health of the company and its employees, and viability to grow this into a multi-billion dollar entity.
2. Steve@Pioneer | March 29th, 2010 at 11:15 am
Thanks for posting. To be clear, Curt should go get the best deal for his company. But for state gov’t, this is what you reap when you contribute to an unpredictable and expensive business climate, then try to fix that with incentives targeted at specific industries and companies. Our bias is for a business taxation environment that is broad-based, predictable, and low, rather than ‘picking winners and losers’.
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