Taking advantage of the symbolism provided by tax day, Republican gubernatorial hopeful and Cranston Mayor Allan Fung on Tuesday unveiled a $200 tax reduction package and reform plan he said would transform the state’s tax system “from a job growth impediment to a competitive advantage.”

“This is a very important issue, and comprehensive tax reform is a critical component of my plan to make Rhode Island a better place to live, with a growing economy and more good jobs,” Fung said during his appearance at Phred’s Drug on Oaklawn Avenue, flanked by company president Charles Rossi.

“It is abundantly clear that we need an overhaul of our entire tax structure in this state,” the mayor continued, repeating a frequent campaign slogan regarding the importance of demonstrating that the Ocean State is “open for business.”

Fung said he has known the Rossi family, which founded Phred’s in 1955, since childhood. Phred’s was formerly located near the restaurant owned by the mayor’s parents on Cranston Street.

Rossi echoed Fung’s call for reform, and voiced support for the mayor.

“We do have a very burdensome tax structure that needs attention desperately if we’re going to get out of last place with unemployment and change the business climate,” he said. “We’ve done well, but it’s not without a lot of work, and I feel like I’m paying more than my fair share of taxes to the state and the local government.”

Fung’s plan consists of four major components – reducing the corporate tax, sharply reducing the minimum corporate tax, matching the federal exemption for the estate tax and lowering the sales tax.

The proposal would lower the corporate rate to 6.5 percent for fiscal year 2016, with annual half-percentage reductions down to 5 percent in fiscal 2019.

“Rhode Island has one of the highest corporate tax rates in the Northeast, and it’s critical that we provide corporate tax relief immediately,” Fung said.

The mayor also framed his sales tax reduction plan as being focused on making the state more competitive regionally. Fung’s plan calls for a reduction from 7 percent to 6.25 percent in the first year, followed by reductions to 6 percent, 5.75 percent and, finally, 5.5 percent in year four.

The mayor’s plan would halve the minimum corporate tax to $250 in fiscal 2016, followed by annual reductions down to $50 in fiscal 2019. Fung said the impact of the reduction would be studied to gauge the feasibility of a further lowering, or even elimination, of the minimum tax.

Information provided by the mayor’s campaign indicates the total cost of the tax reduction package would be $200 million.

To finance the plan, Fung said he would hold spending at the growth of inflation for a savings of $70 million; utilize a $70 million projected budget surplus; reduce the size of government by 5 percent across department, for a savings of $48 million; and withholding a $12.5 million payment to bond holders from the failed 38 Studios video game company.

The campaign of Fung’s Republican primary opponent in the governor’s race, Ken Block, released a plan in February outlining proposed changes in the state’s tax system.

Block’s plan calls for reducing the corporate tax rate from 9 percent to 7 percent; eliminating the minimum corporate tax for new businesses; reducing the car tax; increasing the estate tax threshold while lowering the top rate; reducing the sales tax in border communities; and creating a capital gains tax exemption.

Jeff Britt, Block’s campaign manager, took to social media to criticize Fung’s proposal, suggesting the mayor had copied Block’s approach and questioned Fung’s record on taxes in Cranston.

Fung held up his tenure in City Hall as a major asset, saying he is the only candidate with a proven record to support his policy proposals.