CVS raises concerns about Chafee's tax cut idea

PROVIDENCE, R.I. (AP) — Rhode Island's business leaders are getting behind Gov. Lincoln Chafee's (CHAY'-fee's) proposal to make the state's corporate income tax rate the lowest in New England, but one of the state's largest companies is concerned about how he plans to pay for it.

The Senate Finance Committee reviewed Chafee's idea Tuesday. He's calling to reduce the tax rate over three years from 9 to 7 percent, which would be the lowest in New England.

The Greater Providence Chamber of Commerce supports the idea. So does CVS Caremark. But a lobbyist for the Rhode Island-based company said it opposes Chafee's plan to pay for the tax cut, which would eliminate a tax credit program intended to spur job creation.

CVS received about $15 million in credits under the program last year.