COLUMBIA, S.C. -- Gov. Mark Sanford's plan to raise
cigarette taxes could test the commitment of legislators who have
pledged not to vote for tax increases.
Sanford, who also signed the pledge, hasn't received blessings
from Americans for Tax Reform on his plan to increase the cigarette
tax in exchange for income tax credits.
Although on Friday the national taxpayer group said the proposal
would violate the pledge, the organization said Monday it would need
more time to examine the plan before deciding whether the promise of
"no new taxes" actually would be broken.
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Sanford's
idea is to raise state taxes on cigarettes to 53 cents a pack, up
from one of the nation's lowest levies at 7 cents a pack, to raise
$150 million a year for Medicaid programs. However, the governor
wants the higher tobacco taxes to be offset through a reduction in
the state's income tax.
A year ago, Sanford was under fire for a plan to apply the
state's 5 percent sales tax to gasoline in exchange for the gradual
elimination of the personal income tax. At the time, Grover
Norquist, president of the tax reform group, said the plan made
sense and much of the criticism faded.
Now plans to increase the cigarette tax have brought Americans
for Tax Reform and its pledge back into the picture. Two months ago,
Sanford's no tax increase pledge appeared in newspaper ads as
Sanford considered whether to support a cigarette tax increase.
A year ago, a plan to increase the cigarette tax failed on a
55-50 vote. At the time, 30 House members who signed the pledge
voted against the proposed increase, 12 pledge signers voted for the
increase and seven pledge signers abstained.
And pledge signers hold powerful positions that tend to keep
people in line.
Last week for instance, Norquist's group lauded pledge signers
House Speaker David Wilkins, R-Greenville, and House Majority Leader
Rick Quinn, R-Columbia, for passing a $5.1 billion budget without
raising taxes.
By that time, a subcommittee Quinn headed had killed a tobacco
tax increase as it finished work on an overhaul of the state's
Medicaid system, which provides health care to the state's neediest
residents. Rep. Rex Rice, a pledge signer in previous years, pushed
the proposal.
"I think it's a violation of the pledge," Quinn said.
Rice, R-Fountain Inn, said he didn't renew the pledge last year
because he thought it was necessary to raise the cigarette tax this
year. He also knew he would support a plan to add a nickel a gallon
to fuel taxes to pay for road maintenance.
"I see a couple of issues that go beyond the pledge," Rice said.
"As a freshman coming in, I think it's easy to sign that pledge. But
at some point, adjustments have to be made to our system."
Republicans aren't alone in signing the pledge.
Rep. Herb Kirsh, a Clover Democrat who signed the pledge, says
people who sign the pledge should keep it. "If they want to hesitate
about it, they shouldn't sign it," he said.
--From the Tuesday, March 18, 2003
printed edition of the Augusta Chronicle
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