Posted on Thu, May. 01, 2003


Senate Republicans want to scrap sales tax proposals


Associated Press

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.





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