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Article published Mar 3, 2004
Sanford's tax reduction proposal sent to full House
ROBERT W. DALTON
Staff Writer
COLUMBIA -- The House Ways and Means Committee voted overwhelmingly Tuesday to send Gov. Mark Sanford's state income tax reduction plan to the full House.Committee members voted 19-4 in favor of the plan, which would reduce the income tax from 7 percent to 4.75 percent over 10 years."This is just a solid plan," said Rep. Lanny Littlejohn, R-Pacolet, who voted in favor of the bill. "The money goes back to the people who pay the taxes and would be invested in the economy."Under the plan, the tax would be reduced by .225 percent each year that the Board of Economic Advisors projects growth of at least 2 percent in tax collections. The plan would take effect on July 1, 2005, and the reduction would be guaranteed the first year.The cut would cost the state about $50 million the first year, and an estimated $959 million in the 10th year. But the 2-percent growth threshold would mean the state would take in an extra $100 million each year to offset the cost, Sanford said when he introduced the plan.Sanford has lobbied for reducing the income tax since taking office, saying it would spur capital investment and create jobs.Rep. Gilda Cobb-Hunter, D-Orangeburg, who voted against the plan, said the numbers are not as precise as she would like to see."The money still seems funny," Cobb-Hunter said. "I just don't think this is the right approach to take in these tight times. And I still have questions about whether it will stimulate the economy."The bill should coast through the House, where it has wide support. The House is expected to take up the bill later this month.Sanford patted committee members on the back for supporting the plan."Our efforts to create jobs and make South Carolina more competitive as a state took a big step forward with this vote," he said.Robert W. Dalton can be reached at 562-7274 orbob.dalton@shj.com.