Posted: November 3, 2009

By Vincent Schilling

Correspondent

On Tuesday, Nov. 3, voters will select the next governor of Virginia. Inside Business interviewed former Attorney General Bob McDonnell, the Republican candidate, in person, and, through e-mail, State Sen. Creigh Deeds, the candidate for the Democratic Party, about how they plan to address the needs of small businesses and Virginia's unemployed workforce. The following are the responses to those questions.

Virginia Sen. Creigh Deeds

Small businesses

Small businesses are the backbone of our economy - they make up more than 95 percent of Virginia's employers and they create 75 percent of the new jobs. I have the best, most straightforward proposal for small businesses. It's simple - create a job, get a tax credit. For every new employee a small business owner hires, I'll provide a state tax credit equal to the employer share of the federal payroll tax.

I'll also provide tax credits for capital investment, extend the carry-back period for net operating losses from two to five years, and streamline business regulations by putting all forms online and creating a single point of contact at the Department of Business Assistance for all small businesses. I think we need to do all of these things to foster a culture of entrepreneurship that rewards folks who take risks and act on their ideas. We need to enable citizens of the commonwealth to put the Virginia values of hard work, innovation and perseverance into action.

At the same time as I help small businesses grow, I'll work to attract large employers to the commonwealth too. My economic plan calls for a doubling of the Governor's Opportunity Fund that enables the governor to secure deals with major corporations considering moving to Virginia. I wrote the legislation that created this vital job creation tool - the fund has brought more than 78,000 jobs to the commonwealth since its inception.

I created the Governor's Opportunity Fund, I've consistently supported common-sense bipartisan solutions to the challenges facing the commonwealth and I'm committed to keeping Virginia a low-tax, investment-friendly state that is the best for business.

To encourage the growth of small, women- and minority-owned businesses I will direct my administration to increase the percentage of state contracts awarded to SWaM businesses. Part of this initiative will involve increased outreach and ongoing communication so that state officials and SWaM business owners are aware of issues facing both the commonwealth and SWaM business communities.

The unemployed

Our economic challenges remain serious, and we're not completely on the road to full economic recovery for every family, but we have come some distance to restore confidence and pride in America. And we're not done yet. I'm running for governor to jump-start the economy, keep Virginia moving forward, and bring prosperity to every corner of the commonwealth.

Over the long haul we've got to focus on education, teacher pay, making college accessible and affordable for all Virginians, just to name a few things. I've supported all of these goals during my career as a legislator and I've got the record to prove it. We've got an awful lot of work to do, and I'm committed to getting it done as governor.

My overall goal as governor is to bring prosperity to every corner of the commonwealth and ensure that we remain the best state for business, the best managed state and the best state to raise a child. nnib

Former Attorney General Bob McDonnell

Small businesses

I'll keep taxes and regulation low. I think we need to keep taxes limited and regulation limited. Strong right-to-work laws limit the litigation climate. These are the fundamentals that create a strong economy. I have outlined some detailed plans for small businesses and I have traveled the state talking to entrepreneurs and they have told me we need improvements in the tax and regulatory burdens. We need one-stop permitting for small businesses with a 48-hour turnaround. We need to consolidate all the resources and all of the five different Web sites (for businesses) into one so it makes it easier for the small-business person to be able to access what they need to know to get into business.

I want to make sure that if you have a business in one place in the state and you want to transfer and grow in another place in the state and you have a presumption of being in good standing, that you can get the licenses and certificates issued right away. Government needs to be an ally not an impediment to entrepreneurship and business development.

I've got a number of different outlines and plans for tourism, for film production, for the energy industry for the alternatives and green energy in various tax credits to be able to promote the small businesses that will start in Virginia.

I think that we have more specific and comprehensive plans and we are going to make sure that taxation and regulation are not burdens on the small-business person and they remain low.

The unemployed

We are at about 6.5 percent in Virginia, which is below the national average by a little bit, but still unemployment is absolutely unacceptably high. The top issue in this campaign and the top thing that I will do as governor will be to focus on job creation. Gov. Warner and Gov. Allen had some good programs, but we have not done as well recently. We have to be much more competitive with other states.

Tennessee and (North) Carolina have far more incentives to Pacific Rim countries. They are being very bold with tracking Western capital. We just can't rely on our good reputation. We've got to be much more assertive at finding new markets for Virginia products. I'd like to open up trade offices in China and India and promote agriculture better; that is the largest industry in Virginia at $80 billion. (We need to look) CEOs across the country in the eyes and say, "This is the Virginia story" and tell them, "You need to grow business in Virginia."

I've been a manager of a Fortune 500 company, I've got a master's degree in business, I've managed the attorney general's office, I'm used to dealing with people as a statewide elected official. I think I can bring that to the table and will be able to draw new businesses to Virginia. nib