There They Go Again
The Governor has a number of commissions meeting this summer. One of them is focused on Economic Development.
According to today's Richmond Times-Dispatch, that Commission is reviewing 115 different ideas to promote economic growth in the Commonwealth.
Two of those receiving the most favorable attention according to the RTD:
1. Eliminating the corporate income tax in Virginia
2. Increasing our state's economic development budget
Tax less, spend more. There's an idea.
The last thing we need right now is a Commission which continues to avoid hard choices and just provides happy talk. Advertising our state is great but the metrics on the return investment are very uncertain (yes, I've heard all the "estimates"). The only sure winner in a marketing campaign is the contractor you hire.
And eliminating a whole category of taxation, would mean that our small locally-owned businesses (LLC's and PC's) would be stuck with the corporate tax burden while the large companies pay nothing. That would benefit the large company shareholders. Do they even live in Virginia?
Personally, I would be much more impressed if the Commission was to tell us what economic tools are not working and suggest elimination. Or suggest eliminating certain corporate tax breaks which don't create jobs.
That would show something.
Chap:
You may be surprised to hear someone from the advertising business say this but...I agree with you! Traditional advertising is not going to bring any new businesses to Virginia. Economic development and growth is based on personal sales calls and relationship building. Both take time, effort and energy. There is no quick solution. Most studies indicate that the sales cycle can be up to 5 to 10 years to finally convince a company to move. How long did it take to persuade Philip Morris to move to Richmond?????
The best investment during a recession is to help small Virginia companies grow so they can create jobs. That is where the effort should be concentrated. The rest is simply as you say,"happy talk".
Thank you Bill. BTW, you give marketers a good name!
Chap,
I think you hit the nail-on-the-head when you used the term "metrics." I think that incentivizing business is a job for the state. I do believe that the state should create a good business atmosphere.
Therefore, I think that any tax laws that are used to promote business should have a two year expiration date. If a tax law doesn't work, it should be able to expire before long-term damage is done.
I also think that provisions for renewing tax laws should include metrics in the law itself. That is, the law must be able to stand and deliver its performance measurement agreed to at the inception of the bill, not a collection of loose fact at the end of the law.
Finally, I think that the Commonwealth of Virginia should issue savings bond. It would be a completely voluntary revenue stream that true "sons and daughters of the state" could have deducted from their paycheck. We have talked about selflessness and sacrifice, yet short of joining the national guard, there is no organized way to truly support the state.