On Thursday, the cigarette tax plan was derided by Sen. Jake Knotts, R-Lexington, who said the Senate should "let them know we're not going to throw good money at a bad situation." Sen. Knotts contends there is waste in the Medicaid program that hasn't been corrected.

If Sen. Knotts and the other 26 senators who voted against the governor's proposal have their way, the Medicaid program will lose $170 million in state funds and up to $400 million in federal money that the state allocation would leverage. There may be shortcomings in Medicaid, but crippling the program isn't the way to deal with them. The program provides medical care for 800,000 South Carolinians.

In addition, the cigarette tax increase would enable the state to begin gradually lowering its income tax rate. Income tax relief would be a welcome development for state residents and, according to Gov. Sanford, would remove a significant barrier to economic development.

The Senate also voted against a proposal to increase the sales tax from 5 to 7 percent, to balance the budget and add new money for education. Another sales tax plan would use the increase in revenue to eliminate most local government taxes on cars and homes, and to provide $200 million for public schools. The latter proposal deserves more study, but as part of a comprehensive review of the state's tax system. The waning days of the legislative session is no time to expedite such a far-reaching plan.

Sen. Verne Smith, R-Greenville, describes the governor's cigarette tax proposal as the only way to rescue Medicaid next year. Rescuing Medicaid means maintaining health care for hundreds of thousands of South Carolinians. The Senate should reconsider its ill-advised action, and proceed with the governor's proposal for a cigarette tax to raise needed revenue in a tough budget year.