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Sanford suggests raising state cigarette tax

(Columbia) December 13, 2006 - Governor Mark Sanford is taking another shot at raising the cigarette tax while lowering others.

Three years ago, Governor Mark Sanford toured the state, pushing a plan to raise the cigarette tax by 61 cents while dropping the state income tax. He said it would be good for small business. "One of the keys to helping more small businesses grow and do well in a state like South Carolina as they compete with states all across this nation is a change in the income tax."

Lawmakers killed Sanford's plan. Wednesday he's back with something that sounds familiar. "One of the things that we have trouble with in our state relative to other states out there is tobacco smoking."

This time, a 30 cent per pack increase. That would raise $107 million, partially offsetting a cut in income taxes, and again, helping businesses. Gov. Sanford says, "I think we always to be productive as an economy, want to tax those things that are more harmful and tax less the things that aren't."

Sanford calls the proposal a "rifle shot" that might get a warmer reception from the General Assembly. "Rifle shots - if there's something that I've learned over the last four years, it has been that if we propose things that are too big, we really dissipate our odds of bringing about the outcome that we're shooting for."

But the head of a taxpayers group, Don Weaver, says Sanford is off target, "Taxpayers organizations always want more tax relief, no question about that. But I think it's unfortunate to tie it to cigarette taxes. I think that matter of a tax increase should stand alone, up or down."

And paying more for tobacco doesn't sit well with smokers like Robert Griffin, "Every year it seems like it's going up. It done went from what, $3.15 to $3.45, $3.74. So - that's putting a hurting on the smoker's pocket."

South Carolina's cigarette tax, at seven cents, is the nation's lowest.

At least five states charge $2 or more, Rhode Island and New Jersey close to $2.50 per pack.

If Sanford wins this time, South Carolina's cigarette tax would be the same as Georgia's, 37 cents, and two cents higher than North Carolina's.

Democrats, meanwhile, ripped Sanford's plan. State Senator Brad Hutto says the funds raised by the higher cigarette tax should be used for healthcare insurance costs, not tax "giveaways" to the state's wealthy.

Hutto says nearly 20% of the state's population is uninsured. The Orangeburg democrat says Sanford "has once again shown himself to be out of touch with regular folks."

The governor's proposal will go to the House Ways and Means Committee next month.

Reported by Jack Kuenzie with AP

updated 6:17pm by Bryce Mursch

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