McDonnell talks business during Charlottesville stop

If Virginia’s economy is going to recover, it will be on the backs of small businesses, Republican candidate for governor Bob McDonnell said Monday morning at a Downtown Mall campaign stop.

McDonnell said government must hold back new tax increases, reduce regulatory burden on small businesses and provide tax breaks for job creation. He made his comments after meeting with Mary Loose DeViney and Frances G. Loose of Tuel Jewelers on the mall.

“I’m concerned that, if we’re going to turn the economy around, we need to start out by supporting small businesses,” he said. “This is where the focus ought to be because small business creates the most jobs in the economy. We’re in tough economic times right now and they need help.”

McDonnell said 75 percent of new jobs are created through small businesses.

“We need to find the plan that is going to help the entrepreneurs and business people thrive,” he told supporters. “That’s where the job base is.”

McDonnell has supported tax credits for companies that create more than 50 jobs, decreasing regulation and paperwork and speeding up the process of granting permits and procedures needed to open a business.

Like McDonnell, Democratic candidate R. Creigh Deeds has supported a tax break for businesses that create jobs. His proposal includes a break for every job created. Deeds also supports easier business start-ups, proposing a Web site and office within the Department of Business Assistance to provide help.

Deeds campaign officials said their candidate is slated for a Charlottesville visit on Wednesday but said details have not been confirmed.

Besides the tax break and reductions in paperwork, McDonnell’s jobs plan includes a job czar office headed by Lt. Gov. Bill Bolling, who would act as “Virginia’s chief job creation officer.”

“Democrats and Republicans agree on [helping small businesses],” McDonnell said, “but we differ in our approaches. I think [the Republican] effort is going to be more free market based, with fewer taxes and regulations.”

McDonnell met with DeViney in her jewelry store while reporters listened. She told the candidate that the economy has definitely had an impact and noted that, for start-up businesses, the current credit market is still dry.

“We’ve been in business for a long time and we own what’s in our store, but it takes credit to start up a new business. They say there’s credit available out there, but there really isn’t, not for the small guy,” DeViney said. “Big guys can finance but the other guy can’t because he’s too small.”

DeViney also told McDonnell that small businesses cannot afford a tax increase.

“Don’t raise taxes. Let us have the money to buy inventory and sell it and then the taxes will come back through sales taxes,” she said.

McDonnell spent about an hour on the mall with well-wishers and the curious, talking about politics, the weather and the campaign.

“I’m excited about our chances to win,” he told a handful of area residents bedecked with McDonnell stickers. “We’ve had a good turnout in all of our [campaign stops] and it’s looking great.”

The election is Nov. 3. Monday was the last day to register.