COLUMBIA, S.C. -A Clearwater senator wants to increase the state sales tax by two cents on the dollar to help pay for new tax breaks and cover state agency shortfalls.

Democratic Sen. Tommy Moore said Tuesday he would attach his tax plan to any bill that hits the Senate floor that procedurally can handle a tax increase.

Moore's sales tax increase would raise $968 million in addition to a 53 cent tax increase on cigarettes, now part of the Senate Finance Committee's budget, that would raise $171 million.

The increase in sales tax to 7 percent wouldn't be applied to food, Moore said.

"I'm asking folks to invest in South Carolina," Moore said.

The money would be used for a variety of tax breaks, including:

_ Eliminating state income taxes for people making less than $15,000 yearly.

_ Reducing the income tax rate for certain types of small businesses called "S corporations" to 5 percent from the current 7 percent.

_ Increasing the homestead exemption for people age 65 and older.

After those breaks, about $918 million would remain for state agencies.

About $409 million would go the Education Department. That includes restoring per student spending levels, putting $17.6 million into teacher certification programs and raising teacher pay to $400 above the Southeastern average, Moore said.

The Health and Human Services Department would get $232 million to prevent cuts in Medicaid programs.

State employees would get $94 million in total raises to help offset higher health insurance premiums, Moore said.