COLUMBIA, S.C. - South Carolina's poor
economic outlook and current budget problems haven't stopped several
lawmakers from talking tax cuts.
"We have to cut spending," Rep. John Graham Altman, R-Charleston,
said. "The way you do that is by cutting off the supply of money to
government."
Circumstances have done a good job of that already. A state
shortfall of about $340 million has forced all agencies to cut their
budgets by 5 percent. Some projections have South Carolina starting
next year by as much as $800 million in the hole.
Still, there are proposals in the House and the Senate to cut
everything from property taxes to sales taxes to income taxes.
Altman says he hasn't filed such a bill, but supports those who
have.
Gov. Mark Sanford has pledged not to raise any new taxes.
However, he said last week in his State of the State speech he would
support a cigarette tax if there were a corresponding tax reduction
elsewhere.
However, Rep. Bobby Harrell, R-Charleston, said this may not be
the best year to cut any taxes. Harrell, chairman of the House Ways
and Means Committee and part of the powerful State Budget and
Control Board, said he would back passing tax cuts now that take
effect later.
"It may be possible to talk about a long-range phase-in of some
of these ideas, but cutting taxes this year will be hard," he
said.
Harrell's Ways and Means panel will see all House tax-cut bills.
The committee will likely first pass a draft state budget before
considering those proposals, meaning it could be several weeks
before their fate is known.
The House proposals include one by Rep. Ralph Davenport,
R-Boiling Springs, to remove the state's 5 percent corporate tax in
favor of a sliding scale from 1.5 percent to 5 percent. He also
wants to lower all personal income tax rates from between 2.5-to-7
percent to 1.5 percent-to-6 percent.
Rep. Gilda Cobb-Hunter, D-Orangeburg, wants to extend the
homestead exemption from property taxes to mobile homes owned by
those age 62 or older instead of the current starting age of 65.
Rep. Herb Kirsh, D-Clover, wants to reduce the state's 5 percent
tax on food by 1 percent for five years until it's eliminated.
Kirsch agrees with Altman that the time for tax cuts is now.
"My theory is that the more money you give government, the bigger
government is," Kirsh said. "I don't want too big a government."
There are similar bills in the Senate, including one by
Charleston Republican Sen. John Kuhn to limit home property taxes
levied by local governments to a maximum 1 percent of the home's
assessed value.
Information from: The
State