| Sanford visits Aiken business Governor praises new tax-relief law AIKEN - In the early 1990s, Margaret Holley, the owner of Aiken Office Supply and Book Shop Inc., had three stores in the community. Today, her establishment on Whiskey Road is the last one standing. But with the tax-relief legislation Gov. Mark Sanford signed into law Thursday, growth is again a possibility, she said. "Hopefully, we'll be able to expand the business," she said. "And in expanding the business, it will require additional employees." Mr. Sanford visited Ms. Holley's shop Friday to tout the benefits of cutting the state's income tax rate for small businesses from 7 percent to 5 percent. "The real backbone of job creation in our state, and frankly in this country, is small businesses," he said, pointing out that South Carolina has the third highest unemployment rate in the nation. Ms. Holley, whose business will celebrate its 40th anniversary next month, said she had not yet determined the amount of savings she will reap from the tax cut or how many employees she will hire. Nevertheless, she welcomed the new law. "I think it's a revelation, something that's been needed for an awful long time," she said. The tax cut makes South Carolina's business climate more competitive with other Southeastern states, the governor said. The relief also will put small businesses on the same level as the state's large corporations, which have a maximum tax rate of 5 percent. Mr. Sanford said the tax break was a "significant win," though he originally proposed dropping the personal income tax from 7 percent to 4.75 percent. "Nobody was talking about this kind of income reduction 4.5 years ago," he said. The governor said he hopes the business tax relief will serve as a springboard for additional tax cuts that would put money back into the hands of workers and consumers. State Sen. Tommy Moore, D-Clearwater, proposed the business tax break that Mr. Sanford signed into law three years ago. "It's a victory for small business and businesses everywhere," he said during a telephone interview. Mr. Moore said the tax break, which will be phased in over four years, "will infuse new money into the economy and give small businesses a break" without crippling the state's education system or its cash-strapped agencies. Ms. Holley said the tax cut, along with customer service, will help her compete with large chain stores. "It is getting harder and harder to compete," she said. "But there'll always be a place for small business."
Reach Betsy Gilliland at (803) 648-1395, ext. 113, or betsy.gilliland@augustachronicle.com
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