(Columbia-AP) Dec. 21, 2003 - Governor Mark Sanford thinks he has a solution to stimulate the state's slumping economy.

Sanford has proposed cutting the top individual income tax rate from 7 percent to 5.9 percent. The loss in revenue would be made up by increasing the state's cigarette tax and applying the sales tax to lottery tickets.

Sanford says reducing the state's income tax would put more money into the pockets of small business owners and individual income earners and attract more business and industry to South Carolina.

Sanford says 97 percent of businesses in South Carolina are small businesses.

And small business owner, Janice Malafronte says Sanford's plan for the economy would help her. Malafronte is president chief executive of Hilton Head Island-based Companions, Nurses and Nannies Incorporated and Health Services 2000 Incorporated.

Malafronte says things haven't been easy for South Carolina workers or small businesses in the last couple of years.

Economists say the state has lost 7,200 jobs since 2000.

Malafronte says she could save about $1,200 a year under Sanford's plan. She says she could use the money to buy a new computer.

Posted 5:40pm by Eva Pilgrim