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The New Media Department of The Post and Courier

THURSDAY, JANUARY 20, 2005 12:00 AM

Vocal criticism expected on Sanford's income tax plan

Associated Press

COLUMBIA--Gov. Mark Sanford's plan to reduce the state's income tax has sailed through House committees this session, but it's expected to face some loud critics when it gets to the floor.

The legislation, pitched as a way to attract wealthy retirees and help small -business owners, would lower the state's top income tax rate to 4.75 percent from 7 percent over 10 years.

The state would spend $6 million on the tax cut for the fiscal year beginning July 1. But when fully implemented in 10 years, the state would spend nearly $1 billion.

The tax would be reduced only in years when revenues increase by at least 2 percent. Because the tax break depends on a growing economy, supporters say the break won't cost the state extra money.

The floor debate is expected next week. A healthier economic outlook has state lawmakers more optimistic about the bill, which died in a Senate committee when the session ended last year.


This article was printed via the web on 1/31/2005 4:21:07 PM . This article
appeared in The Post and Courier and updated online at Charleston.net on Thursday, January 20, 2005.