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Rhode Island Taxpayers are Picking Up the Tab for Super-Merger Company’s Employee Healthcare

(Cranston) – In yet another head-scratcher, we found out yesterday that United Natural Foods Inc (UNFI) was able to leverage 2.9 billion dollars to acquire Supervalu. While this would normally be something to cheer about, when we pay attention to the details we find out the Rhode Island taxpayer is currently subsidizing this enormous corporation’s employee healthcare.

As reported by Alex Nunes, UNFI is one of several mega-corporations that have employees utilizing the state-subsidized healthcare programs RiteCare and RiteShare. This is in addition to the hundreds of thousands of dollars in Rhode Island taxpayer-funded incentives given to UNFI via the Jobs Development and Distressed Areas Revitalization Acts.

Why is Raimondo letting these mega corporations get away with deflecting the burden of their healthcare costs onto the RI taxpayer? Where is the oversight by the administration to make sure the taxpayers aren’t getting taken for a ride with these hidden taxpayer costs that lie in her extravagant corporate welfare deals?

“Earlier this week, Raimondo tried to scare Rhode Islanders that undoing these deals would lead to unparalleled destruction. That’s ridiculous. If a company can leverage three billion dollars in a merger, they can pay for good healthcare for their employees without taxpayer subsidies” said Mayor Fung.

Sources:

FY 2016 Tax Credit and Incentive Report

FY 2017 Tax Credit and Incentive Report

Press Contact:
Andrew Augustus
401-410-4818
augustus@allanfung.com