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SC Leaders Speak … Pt. I

HOUSE MAJORITY LEADER WEIGHS IN ON STATE’S ECONOMIC MALAISE

FITSNews - March 31, 2008 - When we sent the beautiful and talented FITS gals up to the S.C. State House the other day, part of their mission was to corner some of our state’s top Republican leaders and get their thoughts on ways to improve South Carolina’s underperforming economy.

Specifically, the girls asked Gov. Mark Sanford, Senate President Glenn McConnell and House Majority Leader Jimmy Merrill to provide us with three ways for South Carolina to turn around its abysmal job and income rankings.

First up to bat is Mr. Merrill, who ended up giving us four answers instead of three. Technically, that’s cheating, but since we’ve popped the good Majority Leader on several occasions in the past, we figured we’d give him a little latitude.

Anyway, here are three plus one ways to improve South Carolina’s economy according to one of the guys who’s actually in a position to do something about it …

RESPONSES FROM JIM MERRILL: 

1. I believe the most important advancement we can make in creating new jobs is by reinvesting in and redefining the mission of the Deptartment of Commerce. Original efforts to streamline this agency did not prove effective and I believe a renewed emphasis on job creation within existing SC businesses, and the active and widespread recruitment of new businesses, would improve our situtation dramatically. Unfortunately, to do so would mean a certain leap of faith in expending capital that does not always show immediate dividends. But I believe we have slipped in this area of government activity and we should place an emphasis on making commerce viable, visible and effective.

2. It has been said before but we are beginning to place too high a priority on secondary degrees and not enough of an emphasis on skills and trades. I have a masters degree; yet if you asked me to do more than change the oil in my car I would be absolutely lost. By emphasizing trade curriculums during the high school years; and skilled curriculums through our technical colleges, we could immediately impact the unemployment rate in a significant manner. Not to mention the value that could be incurred by establishing appprenticeships with local businesses (the culinary arts program at Trident Tech in the Lowcountry is a fine example).

3. Be a leader on tax reform - both commercial and residential. Apparently it is not in vogue to agree with Sanford, but I do believe a consistent tax code that is competitive with other states will result in increased business location and expansion in South Carolina. The number of exemptions and varying rates (along with inconsistent incentives) is confusing at best and serves as a disincentive for business.

4. I’m offering a fourth just for the heck of it … reform of our crazy business licensing procedures. I believe it is insane that businesses are taxed on gross revenue because it hinders many businesses that “front” payment of services, i.e. advertising companies. I also believe that basing a business license on revenue at all is un-American. If two companies make the exact same product; yet one does it better, then that company is penalized because it made a greater profit. There was no difference in services provided by the government, just the company’s effectiveness - and that success is being penalized by the current procedures. Also on business licenses, I do not understand penalizing home businesses. Home owners are already paying for the exact same services that government is ostensibly providing a business - so it is essentially double taxation. By changing the businesses license structure in the state we could incentivize business creation - especially small business creation - instead of penalizing it.

This is just a start and does not even touch on the permitting and regulatory problems that hinder business and certainly need fixing. But all in all, I figure it would take me about 6 months to fix the whole enchilada.

Aside from the Majority Leader’s obvious obsession with Mexican food (see this post also), we don’t see much in here that causes us significant heartburn, of course we look forward to hearing your responses in the comment section below.

Oh, and stay tuned later this week for suggestions from Sen. McConnell and Gov. Sanford …

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