Williams makes stops in Corbin, Williamsburg to push new economic plan

Kentucky State Senate President, and GOP candidate for governor, David Williams, spoke to a group of business and civic leaders in Corbin on Tuesday, touting his recently released job creation and economic growth plan.

Kentucky’s Republican candidate for governor made several local stops Tuesday touting his bold and sweeping plan to improve Kentucky’s economy and create more jobs.

Senate President and GOP gubernatorial hopeful David Williams (R-Burkesville) spoke with a gathering of about 30 business and civic leaders in Corbin about his plan to turn the state’s economy around. The plan entails deep changes to the way the state taxes residents and companies, handles regulations and views some federal programs.

Williams said he understands the perspective of residents who live in border counties who can view firsthand the often-clear distinction between the economic well being of those who live in Tennessee and those who live in Kentucky. Like Whitley County, his native Cumberland County sits on the border with Tennessee.

He suggested, first and foremost, appointing a commission to rewrite the state’s tax code to shift away from income taxes and toward "consumption" taxes on goods and services. He noted that many retirees and others leave the state to avoid withering and sometimes punitive estate and income taxes, a move that sucks venture capital away from Kentucky and into states like Texas, Florida and Tennessee.

"A lot of people take their money with them when they go to those states," Williams said. "There is nothing more important than our tax structure to spur economic growth and create jobs."

Williams said Kentucky’s tax code, first and foremost, does not allow for a business climate that is as attractive as states like Tennessee. He said the commission to rewrite the tax code should be comprised of accountants, lawyers, leading economists from the state’s top universities and others.

In the interim, Williams said he would like to put a suspension on some taxes immediately to help spur the economy. Targeted would be taxes on construction, business assets, hay and feed, the car tax and the "barrel tax" on whiskey.

Also in the plan is a call for reform of worker’s compensation insurance and unemployment insurance. Williams said Kentucky has had to borrow money to pay for its unemployment benefits.

"Kentucky owes $960 million to the federal government right now. Tennessee owes zero and they got a million more employees than we do," Williams said. "We borrowed the money and Kentucky employers are going to have to pay that money back with interest … If we don’t redesign the system, it’s just another thing that makes us uncompetitive."

A bevy of legal and labor reforms were on the table as well. Williams advocates making Kentucky’s "Right-To-Work" laws a local option whereby counties can decide whether they want to adopt them or not. Right-to-Work refers to a prohibition against workers being forced to join an labor union or pay union dues if they do not want to join, even in a so called "closed shop."
Williams wants to make prevailing wage laws also local option.

"We are in tough times right now. The city of Corbin or Whitley County ought to be able to build a building and pay the same for it as they do at the University of the Cumberlands."

Currently, the state’s prevailing wage mandates often artificially high wages be paid on municipal, county and state projects over a certain dollar amount.

Williams briefly touched on an idea to create a board that would review medical malpractice claims to determine whether claims are frivolous and whether they can proceed to court. It is modeled after a similar system in Indiana.

During his speech, Williams launched a broadside against new healthcare legislation signed into law by U.S. President Barack Obama.

"I want to lead the fight against Obamacare," Williams said, noting that Kentucky is not currently among a list of states suing to have the law declared unconstitutional because it forces the purchase of health insurance.

"I think it is the very first step in a very long tumble where the federal government can dictate to individuals and companies that they have to buy a particular product. I think it is unconstitutional for the federal government to do that sort of thing."

Noting the importance of Kentucky’s coal industry, Williams also said he’d like to have a moratorium on new environmental regulations in the state and wants to install a system whereby state regulations could never be any more stringent than federal ones.

Williams, who is running with Department of Agriculture Commissioner Richie Farmer, said he is very much in the race, although some polls show him trailing by significant margins. He was candid during Tuesday’s meeting saying fundraising had been difficult because of tough economic times, and due to the net effect of a harsh negative television and radio advertising campaign against him. He said a non-profit organization had recently agreed to purchase $1 million worth of advertising supporting his campaign.

On a final note, Williams said he would continue to oppose any expanded gambling in the state.

Williams made stops in Williamsburg, McCreary County and Somerset Tuesday as well in support of his economic plan.