COLUMBIA--Gov. Mark Sanford's plan to raise
cigarette taxes could test the commitment of legislators who have pledged
not to vote for tax increases.
Sanford, who also signed the pledge, hasn't received blessings from
Americans for Tax Reform on his plan to increase the cigarette tax in
exchange for income tax credits.
Although on Friday the national taxpayer group said the proposal would
violate the pledge, the organization said Monday it would need more time
to examine the plan before deciding whether the promise of "no new taxes"
actually would be broken.
Sanford's idea is to increase state taxes on cigarettes to 53 cents a
pack, up from one of the nation's lowest levies at 7 cents a pack, to
raise $150 million a year for Medicaid programs. However, the governor
wants the higher tobacco taxes to be offset through a reduction in the
state's income tax.
A year ago, Sanford was under fire for a plan to apply the state's 5
percent sales tax to gasoline in exchange for the gradual elimination of
the personal income tax. At the time, Grover Norquist, president of the
tax reform group, said the plan made sense and much of the criticism
faded.
Now plans to increase the cigarette tax have brought Americans for Tax
Reform and its pledge back into the picture. Two months ago, Sanford's no
tax increase pledge appeared in newspaper ads as Sanford considered
whether to support a cigarette tax increase.
A year ago, a plan to increase the cigarette tax failed on a 55-50
vote. At the time, 30 House members who signed the pledge voted against
the proposed increase, 12 pledge signers voted for the increase and seven
pledge signers abstained.
Last week, Norquist's group lauded pledge signers House Speaker David
Wilkins, R-Greenville, and House Majority Leader Rick Quinn, R-Columbia,
for passing a $5.1 billion budget without raising taxes.
By that time, a subcommittee Quinn headed had killed a tobacco tax
increase as it finished work on an overhaul of the state's Medicaid
system, which provides health care to the state's neediest residents. Rep.
Rex Rice, a pledge signer in previous years, pushed the proposal.
"I think it's a violation of the pledge," Quinn said.
Rice, R-Fountain Inn, said he didn't renew the pledge last year because
he thought it was necessary to raise the cigarette tax this year. He also
knew he would support a plan to add a nickel a gallon to fuel taxes to pay
for road maintenance.
"I see a couple of issues that go beyond the pledge," Rice said. "As a
freshman coming in, I think it's easy to sign that pledge. But at some
point, adjustments have to be made to our system."
Rep. Herb Kirsh, a Clover Democrat who signed the pledge, says people
who sign the pledge should keep it. "If they want to hesitate about it,
they shouldn't sign it."