Income tax cut
appears dead Senate abandons proposal;
many other issues on agenda for final day By JENNIFER TALHELM Staff Writer
It took the Senate about three minutes Wednesday to kill Gov.
Mark Sanford’s top legislative priority — a proposed income tax
cut.
Unless its backers can revive the issue today — a long shot on
the last day of the 2004 General Assembly — Sanford will end his
second legislative year having accomplished few of his goals.
“It is dead as a doornail this year,” Sen. John Courson,
R-Richland, said of the plan to reduce the 7 percent state income
tax to 4.75 percent over 10 years. Courson supports the plan.
Some senators already were looking to next year, hoping to push
for broader tax reform — affecting income, sales and property
taxes.
The Senate ended last week locked in debate over the income tax
plan, with Democrats promising to filibuster until the session’s
end. Republicans needed 28 votes to end the delay, but after several
tries could muster just 25.
At the beginning of the day Wednesday, Finance Committee chairman
Hugh Leatherman, R-Florence, asked to send the tax cut back to
committee, effectively killing the bill. Leatherman said the Senate
had to be able to move beyond the issue to get to bills being
blocked by the filibuster.
There is still a slim chance Sanford could see the Senate vote on
his proposal — it is tacked onto another bill waiting in a tall
stack of yet-to-be-considered legislation.
Senate president pro tem Glenn McConnell, R-Charleston, would
like to see the Senate take a vote on the tax cut before the session
ends.
“We could get to it,” he said. “We’ve got the possibility.”
Sanford, though, sounded resigned to the bill’s demise. Spokesman
Will Folks said the governor worked hard to pass the tax cut,
blaming archaic rules in the Senate for allowing a minority to hold
up legislation the majority wanted.
“We got it to the 1-yard line,” Folks said. “We certainly hope
the Senate is going to review its rules in the summer so the will of
the majority can’t be held hostage.”
BUSY DAY
The income tax vote came on a busy day in the Senate. With one
day left to go before wrapping up the legislative session, senators
whipped through several bills.
They sent an amended version of a property tax plan back to the
House. It could become law if the House agrees today. Under the
bill, property values for tax purposes could increase no more than
20 percent during a reassessment.
Senators also joined the House in passing the Fiscal Discipline
Act, which requires the state to replenish its rainy-day fund and
pay down a $155 million deficit.
Today is likely to be a busy day as well, with lawmakers looking
to pass new laws right up to the 5 p.m. close of the session.
But McConnell said he doubts the Senate will take up such
controversial bills as civil court reform and state government
restructuring.
LOOKING AHEAD
With Sanford’s tax cut out of the way, some in the Senate hope to
push for tax reform next year instead of piecemeal cuts.
For example, Rep. Rick Quinn, R-Richland, and Sens. Vincent
Sheheen, D-Kershaw, and David Thomas, R-Greenville, have already
talked about combining property tax reform plans.
The Quinn/Sheheen proposal would remove all responsibility for
paying for schools from local governments and give it to the state.
It would pay for schools using sales taxes, abandoning property
taxes as a way of funding day-to-day school operations.
“If we’re going to tackle major change in the tax code, we need
to do it in a major fashion,” Sheheen said.
Opponents of Sanford’s tax plan said it would have benefited only
the wealthiest taxpayers — who pay the most tax — and would have
hamstrung state government, making it impossible to recover from
budget cuts.
But Sanford and supporters of his income tax cut had argued the
proposal was an important first step in tax reform.
They said a lower income tax rate would help make South Carolina
more attractive to industry compared with neighboring states.
THE CHECKLIST
The death of Sanford’s tax cut means he has failed to pass almost
any significant legislation this year.
A few weeks ago, Sanford drew up a list of 16 bills he was
pushing lawmakers to support. He called it his “Checklist for
Change” and held regular news conferences to update his
progress.
Now, with one day left in the legislative session, just three
bills have passed both the House and Senate to become law.
Thomas said Sanford’s public rebukes of the Legislature this year
— such as vetoing 106 items in the state budget — have made it
difficult to convince lawmakers to support his bills.
He predicted the Republican governor would continue to struggle
with the GOP-led Legislature next session.
“I really do think some members taste blood,” Thomas said. “They
see he’s had trouble getting things passed.”
Reach Talhelm at (803) 771-8339 or jtalhelm@thestate.com |