Press Release
December 15, 2005

Statewide Business Survey Shows Tax Reduction,
Legal Reform Top Issues Of Importance

W.Va. Chamber ‘In Step’ With Businesses, Nearly 9 Of 10 Respond

CHARLESTON, WV -- West Virginia’s business community wants to see business tax reductions and additional legal reforms.  Those are the results of a statewide business research project commissioned recently by the West Virginia Chamber of Commerce.  The survey project, completed by RMS Strategies, included telephone interviews with 202 business people from across the state. Respondents to the survey included a broad spectrum of employers, including more than are small business people (employ 100 or fewer employees).

Here are some of the key research findings:

•          The perceived key issues for the West Virginia Chamber to pursue are tax reform (most important to smaller firms); legal reform (especially important to natural resource companies); health care costs/availability (more critical to Southern WV and smaller companies); and Workers’ Comp reform (importance highest among manufacturers).

•          A high percentage (more than eight in ten) believe recent legal reforms have had a positive impact on the West Virginia business climate (although most characterize the impact as “somewhat” rather than “very” positive). The specific legal reform perceived to need the most immediate attention: financial caps on damages (especially important to natural resource companies).

•          More than nine in ten have heard about the privatization of Workers’ Comp — and nine in ten believe these reforms will have a positive impact on the state’s business climate, and the attraction of new businesses.

•          Specific health care reforms perceived to need the most immediate attention include affordable health insurance, access to health insurance, and prescription drug costs.

•          Health care reforms are particularly important to Southern W.Va. companies, women, and smaller businesses.

•          In terms of tax issues, the most pressing concerns are tax reform for businesses and tax credits to attract and retain businesses.

•          Almost two-thirds — including a higher percentage of retailers and small companies — favor the elimination of the state’s food tax.  These respondents favor a gradual phase-out of the sales tax (as opposed to eliminating it all it once).

•          The respondents overwhelmingly oppose granting collective bargaining or meet and consult for public employees.

•          While more than eight in ten assign a favorable rating to Governor Manchin, positive ratings are much lower (one-third or less) for the Attorney General and court system.

•          The surveyed businesses are mostly optimistic about West Virginia: three-fourths say the state is on the right track.

•          The vast majority (almost nine in ten) describe the West Virginia Chamber as being “in step with my business needs.”

“The findings of the survey project will be helpful to the leaders and staff of the West Virginia Chamber as we prepare for the 2006 legislative session and 2006 election season,” said Steve Roberts, Chamber President.  “Much of what we found is in line with the current direction and focus of the Chamber’s efforts,” he added.