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Small business groups back Sanford's income tax plan
By JENNIFER HOLLAND
Associated Press Writer
Small business advocates on Thursday urged the Senate to approve Gov. Mark Sanford's plan to reduce the state's income tax.
Sanford wants to cut the state's top income tax rate to 4.75 percent from 7 percent during the next decade, a move that ultimately puts more money in the pockets of small business owners, the governor said.
"Small business is a brutally competitive market place and one or two points is a big deal to a small business," Sanford said.
Hunter Howard, president and CEO of the South Carolina Chamber of Commerce, said the tax relief puts small businesses on a level playing field with larger companies.
"This tax cut will be the catalyst for spurring economic growth in the state," Howard said.
The plan already sailed through the House with Speaker David Wilkins, R-Greenville, as a driving force. But the bill still faces a tough battle among senators who say there are other priorities in a tight budget year.
Senate Finance Committee Chairman Hugh Leatherman, R-Florence, said he would keep his mind open, but wants to review all options.
Republican Sens. John Courson, R-Columbia, and Greg Ryberg, R-Aiken - both who are members of the committee - said they would push for Sanford's plan.
But another panel member, Sen. Tommy Moore, D-Clearwater, said he would only support a bill that ensures education was paid first. "Otherwise," he said, "I don't think we're going to have a serious discussion."
The measure approved in the House calls for the state to cut the state's top income tax rate by .225 percent in each of the next 10 years. The first year's reduction is automatic. Future decreases would depend on the Board of Economic Advisors forecasting growth in the state's economy by 2 percent or more in each of the ensuing years.
Michael Fields, state director of the National Federation of Independent Business, said it was important to send a message to small business owners that, "'We know you're there and we are doing something for you."
During a visit to the Statehouse, Lisa Bridges of Cheraw seized the chance to tell Sanford his plan would help her independent drug store.
She said the state's income tax can make the difference between being able to add an employee.
Sanford, who campaigned on the issue, is having breakfast with senators and hosting meetings with Senate leaders as he tries to push the bill.
If it doesn't get through, "I'll be disappointed," he said.
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April 23, 2004
