Competitiveness Update
September 2009

Gubernatorial Candidates Join Business Leaders for Discussion 

On September 15, the leading candidates for governor joined South Carolina Chamber of Commerce board members, local chamber of commerce executives and invited executives from other business organizations for a forum to discuss their positions on key business issues. Congressman Gresham Barrett, Lieutenant Governor Andre Bauer (not yet announced), Dwight Drake, Senator Larry Grooms, Representative Nikki Haley, Attorney General Henry McMaster, State Superintendent of Education Dr. Jim Rex and Senator Vincent Sheheen joined business leaders for one-on-one 30-minute discussions of the issues. For the first time, the South Carolina Chamber will endorse candidates in the 2010 governor’s race.

Healthcare Debate Takes Center Stage in Washington

With members of Congress back to work in Washington after a month-long recess during August, the single issue dominating headlines is the healthcare reform debate. Just this week, Sen. Max Baucus (D-MT), who chairs the Senate Finance Committee, unveiled his long awaited healthcare plan.
 
The Baucus plan does not include a “public option,” which many Senate Democrats say must be included in any healthcare legislation. Leading business organizations, including the US Chamber of Commerce and National Association of Manufacturers, have opposed the “public option.” Interestingly, not one Senate Republican backed the Baucus proposal. With the passing of Sen. Ted Kennedy, Senate Democrats must convince at least one Republican to join them if they have any hopes of passing healthcare reform in the U.S. Senate and gaining the necessary 60 votes to end a likely filibuster.

U.S. Chamber of Commerce Executive Vice President of Government Affairs Bruce Josten said, “We applaud the provisions in this bill that will lower healthcare costs, increase coverage and improve the quality of care. These range from fairly regulating the insurance market to enacting tax parity for small businesses and the self employed. We strongly support allowing plans to be sold nationally and allowing individuals to purchase health insurance across state lines. This bill does not contain a government-run ‘public option,’ and the Congressional Budget Office has certified it as the first comprehensive health reform bill that will actually bend the cost curve and get healthcare costs under control.”

Josten continued, “However, we have grave concerns over the vast array of new taxes contained in the bill. This bill creates a new tax on benefits that may well spiral out of control to become the next Alternative Minimum Tax. It taxes prescriptions, insurance policies, medical devices, clinics and labs… and all of these taxes will increase costs for employers and workers. The bill does not contain health courts or any other meaningful medical liability reform. Not to mention, the bill creates a massive new entitlement in the form of insurance credits that will burden taxpayers now and in the future. Overall, the bill still needs tremendous improvement.”

Otis Rawl, president and CEO of the South Carolina Chamber of Commerce, was able to speak with many members of the South Carolina congressional delegation during the August recess. Rawl spoke with congressional representatives on issues like healthcare reform, cap-and-trade legislation and the Employee Free Choice Act. See what your congressman had to say about the issues facing business.

Tax Realignment Commission Holds First Meeting

When the General Assembly returned to Columbia June 16 to deal with gubernatorial vetoes, they solidified the establishment of the Tax Realignment Commission (TRAC) to take a comprehensive look at the state’s tax structure. On September 9, the newly established TRAC held its first meeting in Columbia and intends to begin their study with sales tax exemptions and examination of the motor fuel tax to better invest in our state’s roads and bridges. The commission is currently scheduled to deliver a detailed evaluation of the state’s tax structure by March 15, 2010.

TRAC members include: Jimmy Addison, SCANA Corporation; Kenneth Cosgrove, Piedmont Petroleum Corporation; Ben Kochenower, CPA, Cline Brandt Kochenower & Company; Burnet Maybank, JD, Nexsen Pruet (Chairman); Brian Moody, CPA, Moody CPAs and Advisors; Jack Shuler, ArborOne Financial; Bob Steelman, Michelin North America Inc. (Vice Chairman); Charles S. Way Jr., The Beach Company; Don Weaver, Prime Financial Services; and Ken Wingate, CPA, JD, Sweeny, Wingate & Barrow PA. Ray N. Stevens, director of the South Carolina Department of Revenue, will serve as an ex-officio member of the commission.

Ensure Access to America’s Abundant Oil and Natural Gas Resources

Every five years, the federal government develops a comprehensive program for offshore oil and natural gas leasing in the United States. This Five-Year Outer Continental Shelf (OCS) Leasing Program helps schedule offshore oil and natural gas lease sales. An area must be included in the Five-Year Program in order to conduct a lease sale in that area.

Over the next 20 years, the nation’s demand for energy is expected to grow at an annual rate of 1.4 percent. Despite continuing emphasis on conservation and expanding renewable sources of energy, oil and natural gas are projected to account for almost 65 percent of domestic energy consumption in 2025.

Take action to help build public support for offshore oil and natural gas development, as well as offshore alternative energy development by clicking here.

Chamber Releases 2009 Legislative Scorecard

The South Carolina Chamber of Commerce, the state’s largest broad based business organization, has released its 2009 Legislative Scorecard. Each legislative session, the South Carolina Chamber tracks key business votes and tallies all votes to determine an overall score for each member of the General Assembly. Legislative votes are tracked according to the Chamber’s position on each issue. Then, a final composite score is given for each legislator, with 100 percent being a perfect score.

“During these tough economic times, it is imperative we continue to hold legislators accountable on votes that directly impact the competitiveness of this state and the prosperity of every South Carolinian. I would encourage businesses and their employees to take a close look at how their legislators voted on key issues that affect their bottom-line costs,” said Otis B. Rawl, Jr., president and chief executive officer of the South Carolina Chamber of Commerce.

Annual Grassroots Meetings Wrap-Up

The 2009 Grassroots Meetings wrapped-up last week in Greenwood. This summer, the South Carolina Chamber of Commerce, in conjunction with local chambers of commerce, has met with more than 1,000 business leaders. The two overarching issues heard at the 2009 Grassroots Meetings were creating jobs and growing economic development. Business leaders in every area are calling for the repeal of Act 388, the 2006-passed residential property tax relief bill that is crippling businesses and the education community. Other issues of importance include: developing a skilled workforce, affordable healthcare, highway funding, port expansion, government restructuring, tourism funding and nuclear energy.

The South Carolina Chamber’s Grassroots Meetings constitute the first step in developing the Competitiveness Agenda, the business community’s annual list of legislative priorities. To learn more about the issues covered in your area, visit the Grassroots Issue Summaries from around the state.

S.C. Chamber Names Business Leader, Public Servant of the Year

The South Carolina Chamber of Commerce will honor South Carolina’s Business Person of the Year, Emerson Gower, who retired July 1 from Progress Energy in Florence with 38 years of service, and the Public Servant of the Year, Dr. Barry Russell of the South Carolina Technical College System, at the 30th Annual Summit, November 12 at Wild Dunes.

The Chamber’s 30th Annual Summit, South Carolina Business: Leading the Economic Evolution, will bring together more than 250 of the state’s most powerful business leaders to discuss state and federal issues. The newly hired South Carolina State Ports Authority president and CEO, Jim Newsome, will join business leaders to discuss his perspective on leading one of the state’s largest economic engines. In addition, Rich Karlgaard, publisher and columnist at Forbes magazine, will discuss How the 2009-2010 Recovery Will Affect You.

Source: South Carolina Chamber of Commerce