| Right S.C. ship of state South Carolina Gov. Mark Sanford has been on a statewide tour pushing hard again for his tax reform and economic stimulus plan - the one he campaigned on last year to help him get elected. Specifically, the governor is calling for a boost in the cigarette tax to 68 cents a pack; in exchange, he wants lawmakers to cut the state income tax from 7 percent to 5.9 percent. Sanford is convinced the key to healthy economic growth in his state is to eliminate the income tax, but he realizes that can't be done all at once - it must be done gradually, over time. But each small cut along the way should still help the economy grow. However, Sanford is coming under fire for pushing tax reform at a time when his state is confronted with what may be its worst fiscal crisis in history. The Board of Economic Advisers is projecting a scant 2-percent increase in tax collections for the next fiscal year, which will fall far short of the $400 million that budget-writers say they'll need to avoid more deep spending cuts. Such cuts have rocked education, health care and state agencies for the past several years. And there's no relief in sight. This has prompted legislative leaders, including House Speaker David Wilkins, R-Greenville, and House Ways and Means Committee Chairman Bobby Harrell, R-Charleston, to say that before they'll deal with tax reform or revenue-boosting proposals they'll insist the "out-of-control" Medicaid system be fixed. "The House spoke very clearly last year that we won't (raise cigarette taxes) unless we have Medicaid reform," Wilkins said. "Once you raise the cigarette tax, then you've got no leverage for Medicaid reform." Wilkins is right. Medicaid, education, the humongous deficit - and tax reform - all have to be dealt with. But you start by taking up the most severe crisis first, and then go on from there. Essential in this process is for the governor not only to communicate with lawmakers, but to establish a working rapport with them. This shouldn't be all that difficult, because the GOP controls both the legislative and executive branches. Even so, they got off on the wrong foot in this year's General Assembly session, and if it hadn't been for an unexpected federal bailout - not likely to be repeated - the governor and legislators might still be fighting over how to rescue Medicaid. That must not happen again. The year ahead will be tough, especially considering it's an election year, but making hard choices is when politicians earn their pay. It also gives them an opportunity to become statesmen.
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