The Greenville News
State Needs Comprehensive Economic Plan
By Gresham Barrett
February 2, 2010
In 1998, John Elway led the Denver Broncos to his first Super Bowl win. Charlton Heston took the reins at the National Rifle Association, and Jesse “The Body” Ventura was elected Governor of Minnesota. And twelve years ago South Carolina was a regional economic powerhouse.
The Palmetto State had record low unemployment of 2.4%, great development prospects and strong tax revenues. We were the envy of the Southeast.
That was then.
In the years following, our unemployment rate increased gradually at first and then, late in 2008, took a steep upward climb which continues to this day. We have made some strides to improve South Carolina’s soil conditions for growth through significant tort reform measures and other business friendly policy initiatives. However, I fear our state’s deeply rooted economic development relationships that delivered so many success stories in the 1980’s and 90’s, under the leadership of Governors Carroll Campbell and David Beasley, have been allowed to dry up over the past decade.
A singular focus on improving soil conditions has failed to deliver the positive results our families need. Without an effective marketing mechanism, our product – our state – has often gone unsold for too long.
In the face of the highest unemployment rate in our state’s history, we should not neglect any aspect of economic development.
Our next Governor must lead a two-pronged approach to job creation that simultaneously seeks to create a commerce-friendly climate in South Carolina through legislative remedies that benefit existing industries while aggressively and effectively recruiting new businesses to our state by restructuring the Department of Commerce, updating our incentive packages and re-emphasizing key development relationships.
There is no greater obstacle to opportunity in our state than our archaic, job-killing tax code. As a result of the piecemeal approach South Carolina has taken to taxation throughout the years, we have inherited a tax code that punishes success, discourages economic growth and is overly complicated.
A recent example of the consequences of this failed approach can be found by examining the tax relief promised under Act 388. While some homeowners experienced a modest break on property taxes, those gains were more than negated by the increase in commercial and industrial property tax rates that have resulted in some of the highest business property taxes in the nation. For many potential employers that one obstacle alone has been enough to remove our state from consideration for investment.
These unfortunate facts underscore the need for comprehensive tax reform. As Governor, I will appoint a Blue Ribbon Commission comprised of business, legislative, and policy leaders whose goal will be to overhaul our tax code and introduce sweeping reforms by 2011 that result in both lower taxes and an improved business climate.
As we improve our business climate it is vitally important that we reform our Department of Commerce so that it becomes an aggressive job recruiting machine that delivers real results for our families. That process begins with hiring the best and brightest economic development and sales professionals. As Governor, I will conduct a nationwide search to find a head of marketing and business recruitment, and I will hire that individual on a performance-based contract that is not subject to political whims or cycles.
Then, together, we will assemble a highly incentivized sales force that is focused on closing deals for our state. A key performance metric for our commerce team will be relationship development and management. In the business world, relationships are key. That fundamental principle holds especially true for business recruitment. Local and State developers will work together once again and we will dust off and update our incentive packages so we can compete with all of our neighboring states.
With a comprehensive approach to economic development, we can take South Carolina somewhere she has never been before; where our children graduate to take jobs in Greenville or Charleston – not Atlanta or Charlotte; where the next job is across the street – not across the country; where small business and entrepreneurs are the engines of job creation – not government; and where our success is only limited by our willingness to succeed.
Source: http://www.greenvilleonline.com/article/20100202/OPINION/2020303/1016/Gresham-Barrett-State-needs-comprehensive-economic-plan
In 1998, John Elway led the Denver Broncos to his first Super Bowl win. Charlton Heston took the reins at the National Rifle Association, and Jesse “The Body” Ventura was elected Governor of Minnesota. And twelve years ago South Carolina was a regional economic powerhouse.
The Palmetto State had record low unemployment of 2.4%, great development prospects and strong tax revenues. We were the envy of the Southeast.
That was then.
In the years following, our unemployment rate increased gradually at first and then, late in 2008, took a steep upward climb which continues to this day. We have made some strides to improve South Carolina’s soil conditions for growth through significant tort reform measures and other business friendly policy initiatives. However, I fear our state’s deeply rooted economic development relationships that delivered so many success stories in the 1980’s and 90’s, under the leadership of Governors Carroll Campbell and David Beasley, have been allowed to dry up over the past decade.
A singular focus on improving soil conditions has failed to deliver the positive results our families need. Without an effective marketing mechanism, our product – our state – has often gone unsold for too long.
In the face of the highest unemployment rate in our state’s history, we should not neglect any aspect of economic development.
Our next Governor must lead a two-pronged approach to job creation that simultaneously seeks to create a commerce-friendly climate in South Carolina through legislative remedies that benefit existing industries while aggressively and effectively recruiting new businesses to our state by restructuring the Department of Commerce, updating our incentive packages and re-emphasizing key development relationships.
There is no greater obstacle to opportunity in our state than our archaic, job-killing tax code. As a result of the piecemeal approach South Carolina has taken to taxation throughout the years, we have inherited a tax code that punishes success, discourages economic growth and is overly complicated.
A recent example of the consequences of this failed approach can be found by examining the tax relief promised under Act 388. While some homeowners experienced a modest break on property taxes, those gains were more than negated by the increase in commercial and industrial property tax rates that have resulted in some of the highest business property taxes in the nation. For many potential employers that one obstacle alone has been enough to remove our state from consideration for investment.
These unfortunate facts underscore the need for comprehensive tax reform. As Governor, I will appoint a Blue Ribbon Commission comprised of business, legislative, and policy leaders whose goal will be to overhaul our tax code and introduce sweeping reforms by 2011 that result in both lower taxes and an improved business climate.
As we improve our business climate it is vitally important that we reform our Department of Commerce so that it becomes an aggressive job recruiting machine that delivers real results for our families. That process begins with hiring the best and brightest economic development and sales professionals. As Governor, I will conduct a nationwide search to find a head of marketing and business recruitment, and I will hire that individual on a performance-based contract that is not subject to political whims or cycles.
Then, together, we will assemble a highly incentivized sales force that is focused on closing deals for our state. A key performance metric for our commerce team will be relationship development and management. In the business world, relationships are key. That fundamental principle holds especially true for business recruitment. Local and State developers will work together once again and we will dust off and update our incentive packages so we can compete with all of our neighboring states.
With a comprehensive approach to economic development, we can take South Carolina somewhere she has never been before; where our children graduate to take jobs in Greenville or Charleston – not Atlanta or Charlotte; where the next job is across the street – not across the country; where small business and entrepreneurs are the engines of job creation – not government; and where our success is only limited by our willingness to succeed.
