Cam Ward

During Bill Clinton’s 1992 Presidential campaign, his campaign manager put a now-famous slogan on the wall of the campaign office that read, “It’s the economy, stupid.”  The sign was a reminder to all on the campaign team that no matter what subject was raised on the campaign trail, all answers were to come back around to the economy because that was the most important issue facing the country in the early 1990s.  Every time his opponent brought up some other issue, Clinton talked about the faltering economy.

Seventeen years later in Alabama, elected officials must adopt a similar outlook because our state is in need of an economic boost. Some politicians can’t help themselves, and they feel compelled to opine about abortion, gun control and immigration. While all of these are important, with Alabama’s unemployment rate above the national average, we must find ways to get people back to work and increase revenues to state government without raising taxes on working folks and retirees. Right now, Alabamians and Americans are searching for solutions to an ailing economy. Businesses that were once thriving are liquidating assets, closing their doors and boarding up the windows.

Right now, there is no substitute for economic development, also known as job creation. Governor Riley’s team has been masterful at bringing new businesses to Alabama through an aggressive recruitment program and offers of tax incentives to those considering investment in Alabama. But we must do more to keep the businesses already here afloat and viable. One of the areas we must explore is helping the retail industry.  After all, we rely heavily on sales tax revenue and should work to build a more stable source of sales taxes to fund education by encouraging the growth of the retail sector. Some 70 percent of Alabama’s economy is based upon consumer spending, most of which is derived from retail sales.

One proposal I advocate is to develop a series of tax credits and incentives to help existing retail expand into economically-depressed areas of the state. This will give more shopping opportunities to communities where there is little or no choice for retail, create jobs where they are needed most, and increase the tax base for small towns in dire economic straits. This model has been used in South Carolina with success where vacant spaces now have activity and citizens have options on places to shop.  Economic enticements for business will help bring struggling shopping centers back to life and put more people to work.

It makes sense to give tax incentives to business because history proves the best

time to offer them is when the economy is waning.