Governor Mark Sanford's plan to increase the
cigarette tax by 53 cents while lowering the income tax failed
in the Senate Thursday night.
Senators voted 27-to-18
to table the issue.
The tax increase would have
generated about 171 million dollars needed for the state
Medicaid programs for the poor, disabled and
elderly.
The tax reduction would have moved
income tax rates from seven percent to five percent during the
next few years.
Greer Senator Verne Smith, a
Republican, says there is no other clear way to save Medicaid
programs from cuts. Smith says without the increase, costs
will be shifted to paying patients.
But West
Columbia Senator Jake Knotts, a Republican, says the state is
throwing money into a wasteful program.
Sanford's
tax plan could re-emerge next week as the Senate continues the
longest budget debate in years.
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