Not that long ago, politically astute South Carolinians were ready to write Gov. Mark Sanford off as being so hopelessly inflexible that he could persuade S.C. legislators to pass no law of consequence. During his first 2½ years in office, Sanford has tended to reject useful legislation that fell short of his exact preferences.

This week, Sanford showed that he has learned the folly of this rigid approach to lawmaking. He signaled his willingness to accept a much smaller cut in state income tax rates than the across-the-board rate cut he first proposed as a candidate in 2001.

As a result, the General Assembly on Wednesday passed one of the most intelligent pieces of tax legislation to hit the Code of Laws in recent memory - a bill that gives S.C. small businesses the same state income tax break that large corporations get. Sanford will sign the bill into law today.

The measure, developed in the S.C. Senate, would reduce the top marginal state income tax rate for sole proprietorships, limited liability corporations, partnerships and Subchapter S corporations from 7 percent to 5 percent in the next four years. The vast majority of S.C. businesses, including most along the Grand Strand, fall into those categories. They employ hundreds of thousands of South Carolinians.

The 2 percent tax reduction doesn't amount to a lot of money for a given small business. Collectively, eligible businesses will save about $129 million over the next four years.

But because most owners will reinvest the tax savings in their businesses, the result should be a statewide upsurge in job creation. As well, some workers will get higher wages and better benefits, such as health insurance.

Sanford's rate cut would have reduced the top marginal income tax rate from 7 percent to 4.8 percent for all taxpayers. But it also would have had a billion-dollar negative effect on state revenue with no guarantee that the savings would have been reinvested in the S.C. economy.

The governor may have gotten less than he asked for in this bill, but it could not have passed without his help. For putting the good of the S.C. economy ahead of his own agenda, he deserves great credit.