S.C. offering $1.7
billion in tax breaks
The Associated
Press
COLUMBIA - S.C. government is offering
$1.7 billion in tax breaks, but critics say a comprehensive review
of the state's tax system could give relief to more people, spur job
growth and simplify what one taxpayer group calls a "lobbyist's
full-time employment act."
The breaks come from a variety of sources - such as the
well-publicized statewide property tax reform, decrease in the sales
tax on food and the discount on the sales tax for an artificial
joint lubricant.
Legislators are touting the $1.7 billion total to show they are
committed to cutting taxes.
"We are serious about tax relief in this General Assembly,
contrary to comments from others on a regular basis," said House
Speaker Bobby Harrell, R-Charleston.
Critics say many of the tax cuts are too narrow and create a
confusing tax system that requires experts to navigate.
"It's basically a lobbyist's full-time employment act," said Don
Weaver, president of the S.C. Association of Taxpayers.
Weaver's group wants to see a panel appointed to review the
state's tax system, then require lawmakers to reject or accept the
changes as a whole.
Otherwise, lawmakers would try to pick and choose reforms while
being lobbied by the same special interests that supported some of
the proposals that have made the tax system so confusing, Weaver
said.
The General Assembly already has received a report from the
Palmetto Institute. The think tank dedicated to improving South
Carolina's business climate and quality of life advocated a complete
review of South Carolina's tax code to update it, make it fairer and
more efficient, and encourage business investment.
However, lawmakers have done little with institute
recommendations issued a year ago.
Also Gov. Mark Sanford has backed off calls for a tax overhaul,
opting instead for ideas he said target the state's most important
needs, such as raising the cigarette tax to pay partially for an
income tax reduction.
"I think the idea of a comprehensive tax review makes sense,"
Sanford said, referring to the Palmetto Institute report.
But, he added, "Let's not let that get in the way" of other
reforms.
John Rainey, chairman of the state Board of Economic Advisors,
also supports a tax overhaul.
"We're nickel and diming ourselves to death when we don't have an
overall plan," Rainey said.
"Why would there be tax relief on an arthritis drug and not on a
cholesterol drug? Why would there be tax relief on either one of
them?" |