COLUMBIA, S.C. -The Senate Republican Caucus
says they want to scrap sales tax proposals raised two weeks ago by
the Republican-controlled Finance Committee.
Under the budget proposed by the committee, the sales tax cap on
cars would be raised from $300 to $2,500, the tax break on
manufacturing equipment would be eliminated and the food tax
exemption on seniors over age 85 would be rolled back.
The three exemptions "could have an adverse affect on our state's
already-struggling economy as well as economic development, curtail
new cars sales and force those in our communities who can least
afford it to share an unnecessary burden that many cannot afford,"
Senate Finance Committee Chairman Hugh Leatherman said Thursday.
The decision to change the budget proposal comes after a push by
members of the automobile, hotel and business industries. Several
hundred people gathered at the Statehouse Wednesday with Lt. Gov.
Andre Bauer, calling on lawmakers to vote against tax increases.
Also Wednesday, a full-page ad paid for by the E.M. Stivers car
dealership ran in The (Columbia) State newspaper. The ad listed the
names and telephone numbers of all 46 state senators and asked
voters to contact them to speak out against tax increases.
Leatherman said the Republicans simply realized the tax proposals
were not good for the state. But some Democrats say they bowed to
political pressure.
"They're legislating by the way the wind blows," said Sen.
Darrell Jackson, D-Columbia. "It's amazing what a few press
conferences and angry constituents can do."
Sen. John Land, D-Manning, said it's obvious Republicans received
heat from the automobile industry.
"They caved in, but they rightly should have caved in," said
Land, the ranking Democrat on the Finance Committee. Land said he
voted against the committee's proposals because the increased sales
tax exemption on cars would have deeply hurt car sales.
It's not clear what plan the Senate will now take up when it
begins debating the state's $5.2 billion budget on Tuesday.
Sen. Tommy Moore, D-Clearwater, has a proposal to increase the
state sales tax by two cents on the dollar to help pay for new tax
breaks and cover state agency shortfalls. Another proposal would
scrap home and car property taxes and replace them with a
two-cent-on-the-dollar sales tax increase.
Whatever the plan, the priority remains to increase the base
student funding in schools, Leatherman said.
The House version of the budget gives schools about $1,643 per
student. The Senate Finance version raised that to about $1,900.
Educators say they need about $2,200.
The specifics of every plan are not as important as the efforts
to fund education, said Education Department spokesman Jim
Foster.
Lawmakers have sent a clear message that education is a top
priority, said Robert Scarborough, executive director of the South
Carolina Association of School Administrators.