Sanford has right ideas for small business

e-mail this story discuss this issue in our forums Guest column • Chuck Saylors: Students pay dearly with 'Put Parents in Charge' (02/17/05) • Michael Fields: Sanford has right ideas for small business (02/17/05) • George Everett: Clear Skies Act deserves support (02/16/05) • Catherine Mobley: Going 'upstream' may end flood of homelessness (02/16/05) • Howard Daniel and Michael Fanning: Other Governor's School is big piece of puzzle (02/15/05) More details Michael Fields of Columbia is state director for National Federation of Independent Business/South Carolina. He can be reached at Michael.Fields@NFIB.org.

Just like their governor, South Carolina's small-business owners are looking at our state's future with tremendous optimism.

In his January State of the State Address, Gov. Mark Sanford outlined several proposals to promote job creation and support our entrepreneurs. Aware that our state's economy has changed dramatically the last 20 years, Gov. Sanford wants us to keep pace and adapt to changing times.

South Carolinians know many textile mills have closed or moved. They know new industries have emerged and that technology has changed how we do business. What most may not know is small businesses are responsible for nearly seven of 10 new jobs created across the Palmetto State.

Thankfully, the governor recognizes small businesses are today's job creators, and he wants to ensure they help sustain the economic recovery that is under way.

As Gov. Sanford said last month: "Most of the jobs created in our state come from small businesses, yet we penalize those small businesses in what they pay in taxes and tax large corporations at a lower rate."

Finding this perplexing, our chief executive proposes to "effectively equalize the rates" and to bring the income tax rate from 7 percent to 4.75 percent. To achieve this, Gov. Sanford has agreed to compromise by phasing in the relief package over time. The ultimate goal is for South Carolina to move "toward the kind of job start and employment numbers you see in the states more competitive than we are in income tax."

Gov. Sanford also recognizes "our present legal system is neither fair nor efficient (and) needs real reform." In a nutshell, he believes we must modify our legal system "or get ready for a lot of U-Haul trailers headed down I-85 or I-95 with jobs and investment bound for some other state."

He's right. We must choose, in his words, "between a legal system that hurts small businesses and their chances of competing (or make) changes that have already been made by half the states in this country."

In a recent NFIB/South Carolina survey, 41 percent of respondents said they have been sued over the last five years. Fifty-nine percent have been threatened with a lawsuit over the same time period. Gov. Sanford, who knows small-business owners are nine times more likely to be sued than to sue, wants our legislators to end lawsuit abuse and its threat to our economy.

Last year's elections were about accountability of the electorate's wishes. With the governor out front and enough legislative will, 2005 can be a year of profound, positive change for South Carolina business.