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RI gov candidate Chafee turns tax tables on Caprio

By Michelle R. Smith
Associated Press Writer / October 18, 2010

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PROVIDENCE, R.I.—Independent candidate for Rhode Island governor Lincoln Chafee turned the tables Monday on Democratic rival Frank Caprio on the issue that's plagued Chafee the entire campaign: taxes.

In a news conference, Chafee called Caprio a hypocrite for attacking his call for a 1 percent sales tax on items that are exempt from the state's 7 percent sales tax while having repeatedly voted for tax increases during his 16 years in the General Assembly. He also released a TV ad hitting Caprio, now the state's general treasurer, on his votes.

"Here's the record," Chafee said. "At least I'm being consistent and not hypocritical."

Chafee has fought relentless criticism for his tax plan, which would place a 1 percent sales tax on items such as groceries and prescription drugs. It's been especially touchy in a state that has one of the highest unemployment rates in the nation; it was 11.8 percent in August. Chafee argues it's one of several steps necessary to close persistent and large budget gaps without a rise in property taxes, which he says are more burdensome.

Since making the proposal the day he announced his run for governor in January, it's been the main point of attack on Chafee, including a series of TV ads from Caprio and his Democratic supporters that criticize the plan and Chafee as out of touch.

Chafee, a former Republican U.S. senator, highlighted Caprio's votes Monday, including a vote to permanently increase the 6 percent sales tax to a 7 percent sales tax, and votes to raise dozens of fees on businesses and taxpayers, including on over-the-counter drugs, drinking water and motor vehicle registration fees.

Caprio spokesman Nick Hemond said Chafee's plan differs from Caprio's votes because it aims to tax everyday necessities such as heating, clothing, groceries and prescriptions and that the dismal economy means now is not the time to raise taxes. He said during his time in the General Assembly, Caprio voted to lower the capital gains tax and take other steps to make Rhode Island more competitive and encourage investment.

Chafee's ad claims Caprio is trying to pull a "bait and switch" on voters and highlights his votes to raise taxes on "cough medicines, pain medication, even nursing home patients."

"Watch what he does, not what he says," the ad says. "He'll say anything to get elected."

Chafee and Caprio are leading the four-way race to replace term-limited Republican Gov. Don Carcieri Nov. 2. Republican John Robitaille, a former Carcieri aide, and Moderate Ken Block, an entrepreneur, have also harshly criticized Chafee for the sales tax plan. Robitaille's campaign has also gone after Caprio on his record of voting for tax increases.

Also Monday, Chafee declined to participate in a debate held during the radio show of corrupt former Providence Mayor Buddy Cianci. Cianci, a frequent critic of Chafee's who was convicted of reigning over widespread corruption at Providence City Hall, did not participate in the debate but it was billed as a special edition of "The Buddy Cianci Show."

"I have an ethical obligation to decline," Chafee said in a statement. "His illegal activities hurt honest businesses, wasted taxpayer dollars, and cast a dark shadow over Rhode Island."

And the state Ethics Commission said it would not pursue a complaint against Caprio's father, Judge Frank Caprio. Sara Quinn, a former executive director of the commission, said in a complaint last week that Judge Caprio improperly used his position as state higher education board chairman to help one of his son's campaign supporters get a state job.

Ethics Commission executive director Kent Willever said in a letter to Quinn that her complaint fails to constitute a violation of the ethics code because there's no family or business relationship between the elder Caprio and the job applicant.

Caprio has denied any impropriety and his son's campaign has said Quinn's complaint was political.

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Associated Press writer Eric Tucker contributed to this report.

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