(Columbia) March 14, 2003 - Governor Mark Sanford has
talked about raising cigarette taxes before, only now
he's giving specifics. Sanford says he thinks the House
and Senate are headed in two different directions to
solve the state's roughly $1 billion shortfall. The
Republican says he wanted to offer his plan before he
leaves for reserve training in Alabama next weekend.
It's not simple. It could affect everything from how
much you pay for cigarettes to how much you pay in
income tax to how much our seniors pay for medicine.
Jessamina Pope of Columbia has diabetes and a heart
condition. Deborah Purdue has arthritis that can freeze
her joints if it goes untreated. Robert in nearby
Blythewood is overcoming schizophrenia. All depend on
Medicaid, but the program's costs are spiraling.
Governor Sanford proposed his solution on Friday,
starting with an increase in the cigarette tax, "It's
$400 million next year and $400 million the year after
that." Sanford says the plan could generate $400 million
if the cigarette tax was increased to 53 cents from
seven cents-a-pack. He says that would allow the state
to get millions of dollars in federal matching funds for
the state's Medicaid program.
The cigarette tax is only one part of the plan.
Sanford also wants a decrease in another tax, "You could
look at it as a trade off." Sanford says beginning next
year the state should increase the cigarette tax,
thereby bringing in tens of millions of dollars. Sanford
also wants to decrease income tax by an amount that
would match or be larger than the cigarette tax
hike.
What he really wants is for a larger flow of money to
homes and businesses by cutting the income tax. The
state currently taxes 7% of what you make. Sanford says,
by using growth, that can be cut to 6.5% in five years.
It could drop to 5% in 15 years, but it can only happen
in years where the economy grows.
House Speaker David Wilkins said Friday that
Sanford's plan gives no guarantee of a tax decrease if
the economy doesn't grow.
Sanford says with something like this, opposition
does not surprise him, "We promised to look outside the
box. Now we're doing it."
Two team captains in the House, Republicans Rick
Quinn and Bobby Harrell, both told WIS News 10 they
still oppose the cigarette tax hike. The House is where
the battle over the cigarette tax will take place and
right now it looks certain to be a Republican family
feud.
By Lisa
Goddard
Posted 7:43pm by BrettWitt
