Government Spending
Issue Overview: Small business has been concerned about unsustainable increases in government spending at the federal, state and local levels. As government expands its needs for more revenue grow, and too often small businesses have borne the brunt of a tax increase. Small businesses operate on thin margins and know how to live within a budget. Prioritizing a company's "needs" and "wants" is second nature to an entrepreneur, but too often is overlooked by government.
Issue Status: Legislation to cap state spending, H. 3295, passed the House of Representatives on Feb. 16, 2007, and is currently awaiting consideration by the Senate Finance Committee. This bill would cap state government spending at the lesser of 6 percent or the rate of inflation plus the rate of population growth. Legislation to cap local government spending, H. 3615, is currently awaiting consideration by the House Ways and Means Committee. This bill would cap local government spending at the rate of inflation plus the rate of population growth within the political subdivision.
NFIB Position: On Jan. 25, 2007, the NFIB/South Carolina Leadership Council unanimously voted to join the Coalition Against Unlimited Spending (CAUS), a group of business groups, taxpayer associations and limited government advocates formed to urge fiscal restraint. Through Area Action Councils, phone calls and e-mails, many NFIB members have expressed their frustration with the unsustainable growth in government spending over the past few years in South Carolina.
NFIB Actions: NFIB supports reasonable spending caps because they will protect the small business taxpayer from big government. The coalition supports H. 3295 and H. 3615. NFIB wrote each member of the House of Representatives informing them that H. 3615, a bill to cap local government spending, would be a "key vote" on the 2007-08 NFIB/South Carolina Voting Record.
What to Do: Contact your county delegation to the General Assembly, and tell them to sponsor H. 3295 and H. 3615.
What to Say: Ask them to support spending caps on state and local government. A personal touch will leave a lasting impression with your legislators, so please share your experiences, concerns and problems with how your tax dollars are being spent.
