RealCities Click here to visit other RealCities sites
thestate.com - The thestate home page
Help Contact Us Archives Place an Ad EZ Pay Newspaper Subscriptions Subscription Services   

 Search
Search the Archives

Homepage
News
  Breaking
Columnists
Education
Metro
National
Neighbors
Politics
Special Reports
World
Sports
  Gamecocks
Tigers
Preps
Business
Opinion
  Ariail Cartoon
Letters
Life & Style
  Columnists
Food
Health
Home & Style
Life & Arts
Readers' Circle
Travel
Weekend
  Crossword
Movies
Music
Obituaries
Calendars
Classified Ads
Services
  Place Auto Ads
Newspaper ads online
EZ Pay subscriptions
Lottery Numbers
Contact Us
Archives
  Search Archives
Free 7-Day Archives

Survival Guide
Disaster preparedness tips and checklists
Survival.pdf (1.1mb)
Back to Home >  News >

Local






Posted on Tue, May. 13, 2003
Senate rule kills sales tax proposal
Associated Press

An attempt to raise the state sales tax to generate about $200 million for public schools died in the Senate Tuesday as it was ruled out of order.

The plan came up for discussion at the end of the fourth day of debate mired in amendments offered by Democrats as a way to force a tax increase. But Republicans rebuffed the ideas, saying there was no sure source of money to pay for them.

Along the way, objections to debate quashed every effort to bring up sales tax increase proposals. That changed just after 7 p.m. when nearly 20 Republican and Democratic senators spent a few minutes caucusing on the floor. It was the first time the two sides had come together in a week to agree any key points in the $5.2 billion budget debate.

When they broke up, they allowed Sen. David Thomas, R-Fountain Inn, to pitch his proposal to raise $1 billion by increasing the state sales tax to 7 percent from 5 percent.

The money would be used to eliminate nearly 95 percent of local government taxes on cars and homes and generate $200 million for schools. State Education Department figures show that without $326 million in the 2003-2004 budget, schools could face laying off as many as 6,600 teachers.

Thomas said it would unshackle counties from property taxes and force tax collections from people who don't pay property taxes, particularly illegal immigrants. With an estimated 200,000 illegal immigrants in the state, a sales tax is "the only way you can catch them" in the tax system, he said.

And if it doesn't work, the sales tax would return to 5 percent next year and local governments would be able to return to the property tax, he said.

"It's almost like a test drive," Thomas said.

But the plan didn't get far. Senate President Pro Tem Glenn McConnell, R-Charleston, and a master of Senate rules, asked Lt. Gov. Andre Bauer to rule the plan out of order because it altered permanent law. Senate rules say permanent law can't be changed in the state budget.

"It's a whopping $200 million tax increase," McConnell said, adding that it still would leave the 2004-2005 budget $200 million short.

Sen. Ralph Anderson, D-Greenville, said Thomas's proposal would force poor people to pay more when they go to stores and they may not own property that benefits from breaks. "You'll be taking from the poor and giving to the rich," he said.

There are other tax proposals, particularly one from Sen. Tommy Moore, D-Clearwater. His plan increases the sales tax to 7 percent, but gives less back in the way of tax breaks. More money goes into schools, colleges and state agencies.

The question now is whether tax increase proposals are dead.

"I hope not," Moore said. There's been too much emphasis on tax increases being neutral, or balanced with tax cuts and "we're getting nowhere in neutral," he said.

But Senate Finance Committee Chairman Hugh Leatherman says sales tax increases don't appear likely to pass in the budget.

They "appear to be totally dead. I don't see any sales tax," Leatherman said. The same is true for plans to eliminate a handful of sales tax exemptions, he said.

There's a likelihood still of a cigarette tax increase of up to 53 cents a pack from 7 cents. But that issue will be dealt with in a separate bill because it needs to be part of permanent law, Leatherman said.

Leatherman said the getting the sales tax up for debate broke the logjam. He expects the pace on a budget bill, which is about two weeks behind schedule, to quicken now.

Delays have made it likely that the Legislature will have to come back for an extended session to at least deal with budget vetoes after it adjourns June 5.

 email this |  print this



Shopping & Services

Find a Job, a Car,
an Apartment,
a Home, and more...
 

SOUTH CAROLINA WIRE UPDATE
Updated Wednesday, May 14, 2003
Columbia slaying suspect found in Connecticut jail - 09:36 AM EDT
Richland County jail guard charaged with aiding prostitution - 09:13 AM EDT
Civil rights group threatens boycott of York County - 07:17 AM EDT
Students caught smoking must bring parents to workshop - 02:16 AM EDT
Police find man shot in face - 02:14 AM EDT
PHOTOS OF THE DAY




more photos

Search Yellow Pages
SELECT A CATEGORY
OR type one in:
Business name or category
City
State
Get Maps & Directions
White Pages Search
Email Search