Prospects dim for Sanford's income tax plan

COLUMBIA, S.C. - Hopes dimmed Wednesday for Gov. Mark Sanford's plans to cut the state's top income tax rate after state Senate Republicans failed to muster the votes needed to wrap up debate on the bill.

Sanford wants the state's top income tax rate dropped to 4.75 percent from 7 percent during the next decade, paying for the break through overall growth in the state's economy. He says it will stimulate the economy and create jobs.

Opponents have criticized the plan, noting it helps only taxpayers in the top half of the state's income brackets. They say it also forces the state to limit spending on critical state programs like education and health care.

Republicans needed 28 votes to shut down Democrats who threatened to talk Sanford's centerpiece bill to death. But they could never get more than 25 in three votes taken Wednesday.

"What it does is kill the bill," Sen. David Thomas, R-Fountain Inn, said.

Thomas expected Democrats to crack and concede to some type of compromise. But that didn't happen. "We weren't able to get that kind of public pressure put on the Democrats so that they were ... forced politically to compromise and negotiate," Thomas said.

Republican Sens. Jake Knotts of West Columbia and Luke Rankin of Myrtle Beach voted against shutting down debate. Knotts said he wouldn't vote to limit an individual senator's ability to draw out debate unless that senator had done so against him.

If Knotts and Rankin don't change their minds Thursday, "there's no use even trying" to push the bill again, Thomas said. "It's beating a dead horse."

Democrats declared victory.

"I think they came to the realization that they couldn't win," Senate Minority Leader John Land, D-Manning said.

"We did the governor the greatest favor an opposition party could ever do," Land said. "We saved him from his own bad plan. Because had that passed, South Carolina would have been in an economic straight jacket for 10 years at least."

On Tuesday, the bill's supporters said they would stay and wear down opponents. That resolve faded as Democrats did not budge.

"Frankly what I would hope is that the governor would work overnight to see if he can deliver three votes for us," Sen. Hugh Leatherman, R-Florence, said.

Without those three additions, "I don't hold out any hope for this," Senate President Pro Tem Glenn McConnell, R-Charleston, said.

The bill can still be debated Thursday or in the session's last three days next week, Leatherman said.

Sanford isn't giving up. His spokesman Will Folks says the governor thinks the votes are there to pass the bill. "It's unfortunate that the rules of the Senate are so archaic as to keep us from getting there," Folks said.

Observers said Sanford's vetoes in the state's $5.5 billion budget, issued late Tuesday night, didn't help the bill's prospects. His 106 vetoes hit projects for at least two Republican allies for the income tax break.

Leatherman lost a nursing program that would be started at Francis Marion University in his district, which he said was critical to ease the state's nursing shortage. Sanford said the program should have been approved through the Commission on Higher Education.

Sen. Scott Richardson, R-Hilton Head Island, lost $5 million earmarked for pumping sand onto the eroding beaches of Hunting Island State park. Sanford said the state's due for a major hurricane that could wipe out the investment.

"Since when is the governor the guru of when hurricanes are going to land?" Richardson asked.