Action Alert!!!

   You still have time to kick SC solar industry into high gear

Act Now!!  Vote is at 3:00 today

The South Carolina Small Business Chamber of Commerce supports H.3346, which provides for a 35% state tax credit for the installation of solar energy equipment in commercial buildings. We believe that this legislation will greatly help promote the growth of our state’s solar businesses and create many new jobs as it has done in North Carolina.  Most of these new jobs will be created by small businesses in the industry. 

In addition to the economic benefit to the state, a vibrant solar industry will help create a sustainable energy future for our state, reduce the need for construction of expensive new energy producing plants and also reduce carbon emissions that contribute to climate change that threatens our small-business tourism industry.

Contact the Senators below before 1:00 today.  The subcommittee on the bill is at 3:00 today.  Call or email.  Ask that they vote for H.3346

Senators (click on name for email) 
 

Billy O’Dell,  Chairman  (803) 212-6040      

Harvey Peeler (803) 212-6430

Glenn Reese (803) 212-6108

Mike Fair (803) 212-6420

Dick Elliott  (803) 212-6116

Reputation of small business job creation intact

Two recent news stories have challenged the universal belief that small businesses are the job creators.  An AP story on February 17 was titled, “The Truth is That Small Businesses Are Not Good At Creating Jobs.”  Seven days later a New York Times story’s heading said, “Small Companies Create More Jobs?  Maybe Not”. 

But before you swear off shopping with locally-owned small businesses and throw all your support to big box stores, I’ve read these two stories and the data and conclusions have some big problems.

First the Times story.  The Bureau of Labor Statistics has released a new analysis of jobs data and found that large businesses with 500 or more employees over a 20 year period had employment growth of 29 percent compared to businesses with fewer than 50 workers growing employees by only 10.5 percent. 

The Bureau said that the new data analysis was released on an “experimental” basis.  It must have been an experiment in lying with statistics. 

One can be suspicious of data analysis that targets a specific narrow time period (even with a logical sounding explanation) and also uses a different method for classifying data than the way it has traditionally been classified.   This Bureau “experiment” does both.

According to the Times story, “The figures cover employment from April 1990 – one month after employment reached a high for that economic cycle – through March 2011, just over a year after employment hit bottom after the 2007-9 recession.”

What would have been the results if different start and stop dates were selected or a longer period of time used?   We don’t know if Nathan Clausen, the economist in charge of the “experiment” looked at any other time parameters and found different results.  Or did Mr. Clausen even think his selection of dates would be challenged as a potential problem?  Certainly no one would question an economist’s motive, would they?

Then there is the problem of how data was classified for analysis.  The Times story indicates that the “experiment” did not use the Bureau’s long-time business classification methods and went with a completely new method.  As a result, Mr. Clausen’s findings about jobs created by big businesses differ greatly from all other Bureau studies. 

Because of Mr. Clausen’s methodologies, don’t expect to see this “experiment” appearing anytime soon in a scholarly journal.

Now for AP story.  Actually I only have problems with the interpretation of the research and theme of this story that is shouted in the title: “The Truth Is That Small Businesses Are Not Good At Creating Jobs”.

Here is what the economists, who analyzed over 30 years of data, found as reported in this story.

--small businesses no more than five years old — that's about 40 percent of them — are the only ones that create more jobs each year than they cut.  (The Census Bureau reported that startups accounted for more than 99 percent of the 2.5 million net new private-sector jobs in 2005.)

--the 60 percent of small businesses that have been around more than five years act as a slight drag on the number of jobs available in the United States. They have cut about 0.5 percent more staff than they have added in a typical year.

--big businesses, the ones that get all the headlines for layoffs, have hired more than they have cut — about 0.1 percent in a typical year.

Let’s see.  Small businesses over 5 years old and big business varied by less than one percent in adding or cutting jobs.  Start-up small businesses are the only ones creating jobs.  How does that justify the headline, “The Truth Is That Small Businesses Are Not Good At Creating Jobs”.

More troubling is that the AP reporter (not identified) included bogus research by the National Federal of Independent Business (yes, the reporter used “Federal” instead of “Federation”) claiming that small businesses contributed none of the 243,000 new jobs in January.  A more reliable and non-partisan research organization, ADP National Employment Report, found that 56% of the January new jobs came from small businesses with less than 50 employees.

In following the incorrect theme of the story, the AP reporter included anti-regulation rhetoric as an explanation for why small businesses weren’t creating jobs.  That sealed my assessment of this story.  My guess is that the reporter, following an editor’s instructions, wrote the story with the purpose of supporting the Congressional and GOP Presidential mantra on “job killing regulations”.  Yes, this kind of thing actually happens in news organizations.

Well, I think I’ve had enough fun debunking these two stories.  You can now go back to your love of small businesses.  Two incorrect stories haven’t turned the business world upside down.

Online poll: State should promote solar energy

Union Daily Times

by Charles Warner
Editor

February 23, 2012

The State of South Carolina should use business tax credits to promote the growth of solar energy in the state according to the majority of the readers who participated in an online poll conducted by The Union Daily Times.

The Finance Committee of the SC Senate is currently considering House Bill 3346 which would provide tax credits of 35 percent for the installation of solar equipment on commercial buildings. The bill is supported by the South Carolina Small Business Chamber of Commerce (SCSBCC) as a means of stimulating economic development and job growth.

In a telephone interview with The Union Daily Times earlier this month, SCSBCC President Frank Knapp pointed out that passage of the bill would provide South Carolina with “a great opportunity to jump start a renewable energy industry” similar to what North Carolina has done. Knapp said North Carolina used tax credits to make solar equipment more affordable for businesses in the state. He said passage of House Bill 3346 would make South Carolina more attractive to the solar energy industry, promoting the growth of the state’s renewable energy sector including small businesses and even solar farms.

While South Carolina currently offers some residential solar tax credits it does not provide them for commercial facilities. Despite this, Knapp said some companies are already installing solar panels on their facilities to heat water and/or generate electricity. Among them is Boeing, which Knapp said has already installed solar panels on its new plant in North Charleston and the Columbia Museum of Art in Columbia which has also installed solar panels on its building.

For many businesses, however, especially small ones, installation of solar equipment is not currently cost-effective without the kind of tax incentives that would be provided with the passage of House Bill 3346. Knapp said that with the tax credits, South Carolina would reap the economic benefits of increased revenue through economic development and job creation resulting from the growth of the solar energy industry.

In addition to the benefits of economic development and job creation, the SCSBCC website states that the growth of the solar energy industry would reduce the need for building expensive new energy producing plants. It would also help reduce the carbon emissions that contribute to climate change which threatens South Carolina’s tourism and recreation industries.

Taken together, Knapp said this makes solar equipment credits for business a good investment for the state.

Poll

An overwhelming majority of those who participated in an online poll conducted last week by The Union Daily Times agreed.

The poll asked readers “Should the State of South Carolina use business tax credits to promote the growth of solar energy?”

A total of 50 votes were cast with 68 percent or 34 voting yes and 32 percent or 16 voting no.

Knapp welcomed the poll results as a sign of growing public support for the use of tax incentives to promote the growth of the solar power industry in South Carolina.

“This is very good news, we’re very happy that the readers of The Union Daily Times agree with the position that we need to offer financial incentives for commercial solar equipment to both create small business jobs and reduce our energy demands,” Knapp said Wednesday afternoon. “Alternative and renewable energy really is the future for South Carolina and the country and passage of this bill will put us on the road to that end.”

Court victory for small businesses

The wheels of justice turn slowly but they do turn.

On Wednesday a ruling by the South Carolina Court of Appeals found in favor of the state’s Consumer Advocate in an extremely important issue affecting workers’ compensation insurance premiums.  Our own Department of Insurance was fighting to keep the Consumer Advocate, the S.C. Small Business Chamber and other parties from having the ability to challenge data used by the National Council on Compensation Insurance (NCCI) to justify its proposals that result in premium increases or decreases.

Here is the background (don't let your eyes glaze over).

Currently the law prescribes that proposed average increases in workers’ compensation insurance loss costs rates must be approved by an Administrative Law Judge in a public hearing if requested by the S.C. Consumer Advocate.  The “loss cost” is a vital part of how insurance companies determine future rates for businesses.  This open process is an opportunity for the Consumer Advocate and business community to challenge in court any proposed rate increase that will effectively raise premiums.  However, if the workers’ compensation insurance industry proposes an average decrease in overall loss costs, no matter how slight, the state’s Consumer Advocate and businesses community cannot challenge the proposal before a Judge even if a much more significant decrease is warranted.  That was how the Department of Insurance interpreted the current law—so much for transparency.

In 2009 NCCI proposed a 0.3 percent overall decrease in loss costs.  Even though many of us felt that the data might justify an even greater decrease, there was no ability to review the data and possibly show that a bigger decrease was justified.  The Small Business Chamber, which has intervened numerous times to fight rate increases, and the Consumer Advocate were blocked out of the process.

That’s why Senate Bill 31 was introduced last year--to allow the Consumer advocate to review all NCCI data and request a public hearing before a Judge for any proposed change (increase or decrease) to workers’ compensation insurance loss costs.

But the Consumer Advocate didn’t wait for legislation to help small businesses.  Elliott Elam challenged the Department of Insurance and NCCI in court arguing that while NCCI did propose a 0.3 percent average decrease in loss costs, there were businesses categories that were recommended for an increase.  This, he argued, meant that he should be able to review all the data and interested parties be allowed to challenge the NCCI filing in Court even if the overall average loss costs is a decrease in rates.

Yesterday the Court of Appeals agreed with the Consumer Advocate—a victory for small business.  (See the WorkCompCentral story below.)

So now the question is whether S.31 is needed.  The jury is out on that and will probably depend on whether our Department of Insurance wants to keep protecting the insurance industry’s ability to hide data from the consumer by appealing this Court ruling.  Stay tuned.

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WorkCompCentral
February 23, 2012

Court Upholds Consumer Advocate's Right to Review Rate Filings

The South Carolina Consumer Advocate has a right to inspect loss-cost data from the National Council on Compensation Insurance, even if NCCI is calling for an overall average decrease in rates, the South Carolina Court of Appeals ruled on Wednesday.

The court reversed a decision by the Administrative Law Court that prevented the advocate, who operates under the Department of Consumer Affairs, from reviewing NCCI rate filings when they call for an overall decrease.

The court pointed out that loss costs are just one element of the total rate that is approved by the Department of Insurance. Even when the average rate decreases, loss-cost changes filed by NCCI can result in increases for individual classification codes.

"In this case, the NCCI's filing contains increases in many classifications," the appellate court said in its opinion. "Had the Legislature intended to make publication a requirement only for overall increases, it could have amended Section 38-73-910 to specify it is only concerned with 'overall' increases as it did in other paragraphs of Section 38-73-910."

NCCI has submitted loss-cost filings that call for overall rate decreases in each of the past three years, so Consumer Advocate Elliot F. Elam Jr. has not been able to review the data to form an opinion as to whether the decreases were adequate given insurers' loss experience. For 2010, however, NCCI has called for an average increase of 7.3% to take effect July 1. The Insurance Department has not yet approved the filing.

Action Alert!!!

Put small business development on State’s agenda

The South Carolina Small Business Chamber of Commerce has been a leading advocate of the state putting more emphasis on small business economic development.  Senate Bill 1089 has been introduced to do just that.  It would create the Division of Small Business and Entrepreneurial Development in the S.C. Department of Commerce. 

One primary duty of this new office would be to help local units of government grow locally-owned businesses by giving them expert guidance and facilitation in developing and implementing a small business growth plan.  Such a small business program was very successful in Georgia under former Governor Sonny Purdue.  This boots on the ground effort mirrors what the state currently does for big business recruitment.

Contact the Senators below before tomorrow (Wednesday) and ask that they vote for S.1089.  Tell them:

Small business development is just as important as big business recruitment.  Local government needs the same professional help in developing and implementing a small business growth plan as they do for big business recruitment.  A Division of Small Business and Entrepreneurship Development is the commitment to small business economic development that we need.

The Senators on the subcommittee will vote on this bill this Wednesday morning.  Please use the links below to email them or call their state offices today.

Senators (click on name for email)             Telephone       
Kevin Bryant, Chairman                                  (803) 212-6024

Shane Massey                                                     (803) 212-6000

Lee Bright                                                                              (803) 212-6108
Glenn Reese                                                         (803) 212-6108

Kent Williams                                                       (803) 212-6008

NFIB poll: regulations vs. lack of customers

I know that I pick on these guys relentlessly but every once in a while they produce some good information.  I’m talking about the NFIB (National Federation of Independent Business) or in this case the NFIB Research Foundation.

The Foundation released a new study, Small Business, Credit Access, and a Lingering Recession.  William J. Dennis Jr., Senior Research Fellow and author of the report, concludes:

The many fruitless attempts by policymakers to understand and improve the credit market for small businesses are due to the fact that they have thus far failed to adequately address the root causes of the economic crisis – lost confidence and uncertainty, and the housing crisis. The real estate situation has been the elephant in the room since the onset of the Great Recession and remains a substantial variable in the current plight of small business. Washington has responded by doing just enough to be dangerous, but far too little to have any long-term positive impact. Until a workable solution is implemented, we can only expect glacial economic improvement from the small-business sector. It is not a good time to be optimistic, but small-business owners by nature seem to be.

I’ve been saying for some time that if we solve the foreclosure problem in the country and allow underwater property owners to refinance or reduce their mortgage principals, we will get the economy rolling by improving real estate values, invigorating the housing construction industry and putting more money in homeowners’ pockets.

But diving into the provided results of this study there is a very interesting finding related to another hot controversy in Washington—what is the top problem holding back small business growth?  Is it regulations or lack of consumer spending? 

Here is what the NFIB report found regarding the issue of greatest financial concern to small business owners--“uncertainty” (33%), “poor sales” (23%) and “inability to obtain credit”  (15%). 

The report further broke down the responses for those citing “uncertainty” and found that 54% of these were related to the weak economy (“will sales strengthen or slide? and by how much?  What will happen to their input costs?”).  Another 23% of the “uncertainty” respondents cited policy/political conditions—federal and state taxes and budgets, regulations, healthcare reform, etc.  Another 23% of the “uncertainty” respondents referenced both economic and policy/political conditions.

So that you don’t have to do the math, here are the numbers if we’re just interested in the regulations vs. lack of consumer demand issue.

Of all the responses to the question of what is the greatest financial concern for small business owners, somewhere between 23% and 47% were most concerned about poor sales now and in the future.  We can’t know for sure from reading the report because the author didn’t give us enough detail about some of the “uncertainty” responses.

But we do know from the information given that regulations are well down on the small business owners’ list of concerns.  The report barely mentions regulations as a response and lumps these with non-regulation responses in the “policy/political uncertainty” category that only accounted for 7.59% of the total responses to the question.

The U.S. Senate will be addressing three anti-regulations bills soon and you can expect a lot of heated rhetoric about “job killing” regulations.  Clearly based on this NFIB study, the Senate will be wasting precious time and energy that would be better spent on solving our housing crisis.

"Good" morning

We made some good progress in the SC Legislature yesterday morning. 

A Senate subcommittee carried over a regulation to give the state’s Workers’ Compensation Commission a free hand at changing the methodology used to determine compensation for specific medical providers.   Two of the three Senators appeared to be leaning against the proposed regulatory change.  The South Carolina Small Business Chamber of Commerce (SCSBCC) opposes this change because the inevitable result will be certain well-heeled medical providers will use their influence to be paid more for services.  Workers’ compensation insurance premiums would then have to be raised.  We believe that the Legislature should maintain oversight of the current scientifically-based methodology where all medical providers are treated the same regardless of their deep pockets.  (See story below)

About 50 independent auto glass installers joined the SCSBCC in a press conference (see pic from yesterday’s blog below) in support of a House Bill to restrict an unfair trade practice used by Safelite Corporation to steer business in its direction.  Safelite, a foreign-owned multinational corporation, operates call-centers for about 150 auto insurance companies taking customer calls that include questions about replacing damaged auto glass.  The SC Auto Glass Installers Association with over 300 members correctly feels that Safelite should not be able to use its customer call centers for the insurance industry to increase its auto glass business (think how you would feel if your customers had to go through your competition to get to you).  Later that morning the Senate Committee hearing the bill approved an amendment to the legislation and voted it out to the full Senate.

It was a good morning for small business, not so good for some well-financed special interests.
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WorkCompCentral
February 16, 2012

Effort to Break Ties with RBRVS Likely Dead for the Session

By Michael Whiteley, Eastern Bureau Chief

An effort by the South Carolina Workers' Compensation Commission (WCC) for the authority to adopt a fee schedule that isn't tied to Medicare's pricing system appears to be dead for the 2012 legislative session because of fears over what future commissions might do, officials confirmed on Wednesday.

A special subcommittee of the Senate Judiciary Committee met on Wednesday morning and took no action on proposed Regulation 67-1302(A), which the commission voted to send to the South Carolina Legislature for approval last September.

Under South Carolina's Administrate Procedures Act, lawmakers must approve changes to state regulations, vote them down or allow them to take effect without action.

Senate Judiciary Subcommittee Chairman Larry Martin, R-Pickens, said in an interview following the committee meeting that the regulation has no chance of approval by the full Senate in its present form, and that he had no suggestions for changing the proposed regulation.

He said the subcommittee is planning a second hearing, during which it will probably pass a resolution recommending that the proposed rule be withdrawn.

"It looks like the business community is pretty unanimously opposed to the regulation and has expressed serious concerns about what the commission may or may not do in the future," Martin said.

He said he expects the full Senate to support a proposal to order the rule be withdrawn.

The South Carolina Small Business Chamber of Commerce and the South Carolina Small Business Regulatory Review Committee opposed the rule. The groups demanded last year that the commission provide an economic impact statement and regulatory flexibility analysis before going forward with the regulation.

WCC Executive Director Gary Cannon, who testified in favor of the rules change on Wednesday, said the proposed regulation would have no impact without further action by the commission at a later date.

The current regulation sets maximum reimbursements for physicians' fees based on the Resource-Based Relative Value Scale (RBRVS) used by Medicare, plus a single South Carolina conversion factor for services provided by all types of physicians except anesthesiologists, who are paid using a different method.

The state's orthopedic surgeons, pain management doctors and neurologists have called on the commission to create multiple conversion factors or scrap the Medicare-based schedule altogether. They argue the Medicare RBRVS system tends to penalize specialists.

The proposed regulation removes the requirement that maximum allowable payments be "based on a relative value scale and conversion factor set by the commission."

Frank Knapp, president of the South Carolina Small Business Chamber of Commerce, told the panel on Wednesday that the rules change will boost workers' compensation premiums in the state. He called on lawmakers to exercise their authority to deny the rule.

The National Council on Compensation Insurance (NCCI) earlier this week submitted a proposal to increase loss costs by 7.3%. That recommendation was not based on the fee schedule, but on increasing indemnity and medical claims costs.

"This ensures that special interest medical providers are not exerting undue influence over the commission as to compensation that would directly benefit only them, as opposed to all providers, and add significant cost to the system," Knapp said.

The South Carolina Orthopaedic Society did not return a telephone call from WorkCompCentral, but has warned lawmakers that some orthopedic surgeons may pull out of the workers' compensation system if payments aren't increased.

Cannon said the commission has no plans to come back to lawmakers with a revised rule.

"The biggest argument I came away with today was the unknown factor," Cannon said. "While they trust the current commission with regard to the fee schedule, there is fear about what future commissions may do."

South Carolina gives lawmakers 120 legislative days to approve a state regulatory change, vote it down or allow it to take effect without action.

The regulation would take effect automatically if the House and Senate don't vote to withdraw it by May 9.

The Senate meeting announcement and a link to the proposed regulation are here.

Busy morning

No time to write this morning.  Before noon I will have testified at 2 state Senate subcommittee meetings, held a press conference and met with two Senators—an unusually busy but important morning.

The issues are these:

1.   Protecting businesses from workers’ compensation premium increases by maintaining legislative oversight of the methods used to determine medical service compensation.

2.   Increasing the state’s ability to identify and stop false and fraudulent claims for payments from the state.

3.   Protecting over 300 small, locally-owned auto glass installers from unfair trade practices of one foreign-owned BIG business.

4.   Creating a Division of Small Business and Entrepreneurial Development within the Department of Commerce to devote some resources to helping local government plan for and grow locally-owned businesses.

It’s a great day in South Carolina.

Riots vs. Jobs

There are riots in Greece.  The economies of Britain, Italy and Spain are not bouncing back from the Great Recession like they did after the Great Depression. Why?  Because the governments in these countries opted for austerity and deficit reduction instead of investing in jobs as a way out of the recession.

Which brings us to President Obama’s proposed 2013 budget released yesterday. 

As you might recall, I serve as Vice Chair of the American Sustainable Business Council.  That organization and Business for Shared Prosperity put out a press release yesterday to discuss some of the President’s budget items.  The release (below) was picked up by some of the national media (here and here).

Happy Valentine’s Day!

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February 13, 2012

Small Business Owners Support President’s Budget on Taxes, Infrastructure

Majorities favor higher taxes on wealthy, closing corporate loopholes, investing in infrastructure

Washington, DC – Small business owners favor key provisions of the President’s 2013 budget designed to support domestic job creation, modernize infrastructure and raise needed revenue with fairer taxes. These include increasing taxes on the wealthy, eliminating hedge fund manager tax breaks, ending tax deductions for shipping jobs overseas, closing corporate loopholes, investing in infrastructure, and keeping first responders and teachers on the job.

"Small business owners struggled through a recession we didn't cause yet we still lead the economy in job creation. So it's good to see the President propose steps that small business owners know will really jumpstart the economy – investing in infrastructure to create blue-collar jobs, keeping valuable service providers on the job, bringing manufacturing jobs back home and covering the cost by asking the wealthiest and big corporations to pay their fair share in taxes,” said Frank Knapp, President and CEO of the South Carolina Small Business Chamber of Commerce and Vice Chair of the American Sustainable Business Council. “Austerity plans, like those that are causing riots in Europe, are wrong for America. We need investment in job growth. We are the 'job creators' – listen to us."

Small business owners made their views clear on taxes and investment in a recent nationwide survey in which 50 percent of respondents identified as Republican or independent-leaning Republican; 32 percent as Democrat or independent-leaning Democratic; and 15 percent as independent. Majorities in the scientific poll commissioned by the American Sustainable Business Council, Main Street Alliance and Small Business Majority, said the following:

Taxes

·   57 percent said individuals earning more than $1 million a year should pay a higher tax rate on the income over $1 million.

·   81 percent favor hedge fund managers paying taxes at the ordinary income tax rate, which currently tops out at 35 percent, rather than the 15 percent capital gains rate they pay now.

·   91 percent said that U.S. multinational corporations’ use of accounting loopholes to shift their U.S. profits to their offshore subsidiaries to avoid taxes is a problem.

·   When asked what would do the most to create jobs, small business owners chose eliminating incentives to move jobs overseas.

·   51 percent say tax cuts on taxable household income over $250,000 a year should expire (only 40 percent believe they should be extended).

Infrastructure and other Investment

·   69 percent of small business owners support committing $50 billion to new and existing infrastructure projects that would generate jobs—such as making improvements to road, bridge and water systems.

·   59 percent favor creating a nationwide wireless network and improving the accessibility of high-speed wireless services.

·   59 percent support creating a National Infrastructure Bank to help fund infrastructure, like roads, bridges, and water systems, via private and public capital.

·   53 percent favor spending $35 billion to prevent layoffs of police officers, teachers, and firefighters.

Read the poll reports here:

Small Business Owners’ Views on Taxes and How to Level the Playing Field with Big Business

Small Business Owner Opinions on Access to Credit and Proposals to Boost the Economy

“The American Sustainable Business Council supports the sensible tax and investment provisions in the President’s budget,” said David Levine, CEO of the American Sustainable Business Council. “The smart use of public funds for job creation, education, infrastructure and scientific research is crucial to restoring American leadership in world-class innovation, services and manufacturing.”

“As a successful corporate executive, I recognize that our tax code is unfair and replete with tax shelters and loopholes favoring the wealthy,” said Jack Kintslinger, chairman emeritus of KCI Technologies, Inc. and a member of Business for Shared Prosperity. “Most wealthy business executives I know are prepared to contribute more in taxes if the additional revenues are spent wisely. They know that they can spare paying higher taxes and that the nation desperately needs more revenue for essential services.”

“The combination of a hurting middle class, crumbling infrastructure and irresponsibly low taxes on the biggest corporations and richest Americans is no recipe for innovation, employment and national success,” said Jody Gorran, owner of Aquatherm Industries Inc., a manufacturer in New Jersey. “It’s time for big corporations and wealthy Americans to stop passing the buck, pay their fair share in taxes, create jobs here at home and invest in our nation’s future.”

Poll results reported in this statement represent findings from a scientific nationwide survey of 500 small business owners, commissioned by the American Sustainable Business Council, Main Street Alliance and Small Business Majority, and conducted by Lake Research Partners. The survey was conducted in December 2011 and January 2012. It has a margin of error of +/- 4.4%.

###

The American Sustainable Business Council is a growing coalition of business networks representing over 100,000 companies and 200,000 business leaders. ASBC advocates for public policies that meet the realities of the 21st century global economy. www.asbcouncil.org

Business for Shared Prosperity is a national network of forward-thinking business owners, executives and investors. BSP is a member of the American Sustainable Business Council. www.businessforsharedprosperity.org

Action Alert!!

Protect Workers’ Comp Rates from Special Interests Wanting More Money

The Workers’ Compensation Commission is asking the Legislature for a free hand at changing the way medical providers are compensated.  Well-financed special interest medical providers are pushing for this change.  If they are successful, the result will be higher premiums for the small businesses of our state. 

This Wednesday at 9AM, three Senators will hold a public hearing on R.4188.  The South Carolina Small Business Chamber of Commerce, the South Carolina Small Business Regulatory Review Committee and the American Insurance Association all oppose R.4188.

We need your help.  Please contact the three Senators below and ask them to vote NO on R.4188.  Please tell them the following:

The current system for determining compensation to medical providers is objective and fair.  The General Assembly should not give the Workers’ Compensation Commission the power to make changes to this system without first going to the Legislature with a specific proposal.  A vote for R.4188 is a vote for raising workers’ compensation insurance premiums on small businesses.

Please email or call the state offices of these Senators immediately.  They’re contact information can be found below.

Senators:
Larry Martin (Chair)   http://www.scstatehouse.gov/member.php?code=1172727132

Tom Davis                  http://www.scstatehouse.gov/member.php?code=0456818127

Floyd Nicholson         http://www.scstatehouse.gov/member.php?code=1419318012

New proposal to help underwater homeowners

Today or tomorrow all 50 states are expected to sign off on a $37 billion settlement with Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial that will provide compensation to homeowners who were harmed with nefarious foreclosure practices. 

This deal between the big banks and the states’ attorneys general will result in mortgage principle reductions, refinancing at lower rates and cash to the wronged homeowners.

While this is good news for those who suffered and will give some help to the economy from an influx of money at the local level, we need to help the rest of the underwater homeowners in this country and put the final nail in the coffin of this down-economy.

In his State of the Union address last month President Obama said:

I’m sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates. No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won’t add to the deficit, and will give banks that were rescued by taxpayers a chance to repay a deficit of trust.

But with the GOP in Congress unlikely to allow any Obama-proposal that will help improve the economy before November, a New York Times editorial proposes another path to helping homeowners struggling to pay mortgages while invigorating the new housing construction market.

According to the editorial the Treasury Department can, without Congressional approval, give stronger financial incentives to Fannie Mae, Freddie Mac and private banks to help homeowners by reducing the principle on underwater home loans.

If a politically paralyzed Congress is not going to take action to accelerate our economy by reducing foreclosures and thus jump-starting the home building industry, then the Administration must do what it can on its own.

Small business poll

On regulations, taxes and money in politics…"We're not like them"

Columbia, SC—A national poll shows the opinions of small business owners differ dramatically from the advocacy of big businesses and multinational corporations.  The results of the national scientific poll were released over the past four weeks by the American Sustainable Business Council, Main Street Alliance and Small Business Majority.  The poll was conducted by Lake Research Partners between December 8, 2011 and January 4, 2012. 

"Many of the real opinions of small business owners are far different than what are portrayed by big business interests," said Frank Knapp, Jr., Vice Chair of the American Sustainable Business Council and President/CEO of the South Carolina Small Business Chamber of Commerce. 

"There are some real ‘man-bites-dog’ stories here that are particularly amazing since half of the respondents self-identified as either Republican or leaning Republican," said Knapp. 

"Small business owners do not hate regulations,” said Knapp.  “They support regulations ensuring clean air and water and those moving the country toward energy efficiency and clean energy.  And regulations are not stopping hiring as we've been hearing—lack of consumer demand is doing that.  In fact, small business owners view regulations as protecting them from big business."

“Small business owners also don’t agree with the big business mantra on taxation,” said Knapp.  “They say that big businesses and multinational corporations use loopholes to avoid paying their fair share of taxes which harms small businesses.  A majority of these owners also support higher tax rates on individual income over $1 million, even $250,000.”

“These opinions fly in the face of the rhetoric about not raising taxes on the wealthiest because they are the ‘job creators’”, said Knapp.  “Small businesses are leading the job recovery in this country and they believe the wealthiest corporations and individuals are not paying their fair share of taxes.”

“On other issues small business owners share the public’s disgust with money in politics and disapprove of the Supreme Court’s Citizens United decision,” said Knapp. “Citizens United has unleashed massive amount of money from big corporations and millionaires and billionaires into political campaigns.  Small businesses believed they have been harmed because of this.”

Below are details of the poll results:

• Small business owners see their top problem as weak customer demand, not regulations: 34 percent cited weak customer demand as the most important problem for their business, while only 14 percent named government regulations.
• On the question of what would do the most to create jobs, cutting regulations came in low on the list: the top response was eliminating incentives to move jobs overseas at 24 percent; reducing regulation was fifth at 10 percent.
• Small business owners see an important role for standards and safeguards: 78 percent believe some standards are important to protect small businesses from unfair competition, and 76 percent believe regulations on the books should be enforced.
• Small business owners see regulations as necessary for a modern economy: 93 percent agree their business can live with some regulation if it is fair, manageable and reasonable.
• Small business owners express strong support for specific rules and standards: 78 percent support rules to prevent health insurance companies from increasing rates excessively, 84 percent support food safety standards, 80 percent support product safety standards and 80 percent support disclosure and regulation of toxic materials.
• Small business owners support clean energy policies: 79 percent support ensuring clean air and water, and 61 percent support moving the country towards energy efficiency and clean energy.
• Small businesses believe in streamlining government processes: 73 percent of respondents believe we should allow for one-stop electronic filing of government paperwork.
• Nine out of ten small business owners say big corporations use loopholes to avoid taxes that small businesses have to pay: 92 percent say big corporations’ use of such loopholes is a problem. Three-quarters of owners say their small business is harmed when loopholes allow big corporations to avoid taxes.
• Nine out of ten small business owners say that U.S. multinational corporations’ use of accounting loopholes to shift their U.S. profits to their offshore subsidiaries to avoid taxes is a problem: 91 percent agree it is a problem, with 55 percent saying it’s a very serious problem. When asked what would do the most to create jobs, small business owners chose eliminating incentives to move jobs overseas.
• Small business owners say big corporations are not paying their fair share of taxes: 67 percent believe big corporations pay less than their fair share. An even bigger majority, 73 percent, says multinational corporations pay less than their fair share.
• Small business owners say millionaires pay less than their fair share in taxes: 58 percent say households whose annual income exceeds $1 million pay less than their fair share.
• Small business owners support a higher tax rate for individuals earning more than $1 million: 57 percent agree that individuals earning more than $1 million a year should pay a higher tax rate on the income over $1 million.
• Small business owners want to eliminate the “carried interest” loophole that gives hedge fund managers a big break on their taxes: 81 percent favor hedge fund managers paying taxes at the ordinary income tax rate, which currently tops out at 35 percent, rather than the 15 percent capital gains rate they pay now.
• Small business owners support ending upper-income tax cuts: 51 percent say Congress should let tax cuts on taxable household income over $250,000 a year expire (only 40 percent believe they should be extended).
• Respondents in this scientific national survey were politically diverse, with a majority Republican or independent-leaning Republican: 50 percent identified as Republican (27 percent) or independent-leaning Republican (23 percent); 32 percent as Democrat (14 percent) or independent-leaning Democratic (18 percent); and 15 percent as independent.
• Small business owners say Citizens United decision hurts small businesses:  66 percent of small business owners view Citizens United v. FEC decision as bad for small businesses; 88 percent hold negative view of money in politics overall.

Read the full poll reports at these links:

http://www.asbcouncil.org/poll_regulations.html

http://www.asbcouncil.org/uploads/Taxes_Poll_Report_FINAL.pdf

http://www.asbcouncil.org/poll_money_in_politics.html

http://www.asbcouncil.org/poll_access_to_credit.html