Bipartisan tax cut

Gov. Mark Sanford and veteran state Sen. Tommy Moore, D-Clearwater, who might run against the governor next year, don't agree on much - unless it's about reducing taxes on small businesses.

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A bill that Moore proposed last year, to cut the state's small business tax from 7 percent to 5 percent, recently was signed into law by Sanford.

This goes to show that good legislation can draw strong bipartisan support.

The bill was constructive because it corrected an imbalance in the state's business tax code that may have contributed to South Carolina's unemployment rate, third highest in the nation.

Small businesses, which provide more than 70 percent of jobs, were being taxed at the same rate as personal income, while large corporations were taxed at 5 percent. The new law will tax all businesses at the 5 percent rate and, hopefully, the job picture will soon improve.

On a visit to Aiken earlier this month, the governor liked what he heard. One small-business owner, who'd been cutting back in recent years, says she's now optimistic that as the lower tax rate is phased in, it will enable her to compete better against the large chains and eventually to expand her office supply and book shop business.

Another plus, according to Moore, is that the increased business the tax cut will generate should broaden the tax base enough to offset any revenue losses. Put another way, the tax cut will not hurt, and may actually help, public education and other vital state services.

--From the Friday, April 22, 2005 printed edition of the Augusta Chronicle

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