COLUMBIA--Gov. Mark Sanford and House Speaker David Wilkins, R-Greenville, rolled out their Income Tax Relief Act on Tuesday, calling the measure a salve for the state's economic wounds and proof that the governor and General Assembly can work together.

"Globalization has changed our world," Sanford said during a press conference at the Statehouse. "It is vital that we become more competitive as a state in growing small businesses, attracting investments and attracting capital to our state. That's what this bill is all about."

Gov. Mark Sanford

The measure calls for reducing the state's highest income tax bracket by .225 percent annually for the next 10 years, dropping the rate from 7 percent to 4.75 percent.

The reduction would not occur unless the state's general fund grows by 2 percent or more, based on projections by the state Board of Economic Advisors. The plan, if approved, would take effect July 1, 2005, and would occur regardless of revenue projections that year.

Sanford said the cut would reduce state revenues by $62 million annually but that 2 percent growth would add $100 million to state coffers. "This is something we can do that would help the job and economy situation in South Carolina," he said.

Sanford and Wilkins were joined Tuesday by dozens of legislators from the House and Senate, all supporting the proposed tax cut. Wilkins said 90 representatives, more than a dozen of them Democrats, already have signed on. Senate President Pro Tem Glenn McConnell, R-Charleston, also has voiced his support for the plan.

"Rather than talking about raising taxes, we're here talking about raising the standard of living for all South Carolinians by creating jobs and opportunity and growing the economy," Wilkins said.

Not everyone is on board. House Minority Leader James Smith, D-Columbia, called the measure "garbage" and vowed to fight it. He said the tax cut is geared more toward re-electing House members than reenergizing the state's economy. All House seats are up for election this year.

While a majority of the House showed up to tout the plan, Sen. Larry Grooms, R-Bonneau, said he thought the proposal, though likely to pass, would have a tougher time in the Senate. He pointed out that one opposing senator can place a bill on the contested calendar, significantly slowing its progress.

According to the U.S. Bureau of Labor Statistics, the state lost 41,000 jobs in 2003, the largest decline in the nation when measured on a percentage basis

"If you were to look back in the history pages, you would not find another time in South Carolina since the Great Depression where you have had three consecutive years of job loss," Sanford said.

For that reason, he continues to advocate income tax reduction, which he thinks is the most important factor in turning the economy around.

House Ways and Means Chairman Bobby Harrell, R-Charleston, worked closely on the plan. He said he would support a tax cut regardless of growth because it is a long-term approach to economic health.

"This tax cut will be an engine to fuel economic growth for the next decade," he said.

A subtext for Tuesday's announcement was the desire to quell rumors of friction between the governor and the Republican leadership in the General Assembly.

The tension between the two was most notably present in reaction to a poll conducted by the governor in October. The poll asked several questions regarding the popularity of the governor and his agenda. It also asked questions of 500 registered voters regarding the popularity of leading GOP figures in the House and Senate.

While the results implied widespread support for the governor and his ideas, the loaded wording of questions caused many in the House and Senate to take offense.

On Tuesday Wilkins said he hoped introduction of the tax bill would put that issue to rest. "We share the same ideas and the same goals for South Carolina," he said.

State Sen. John Courson, R-Columbia, thanked the governor for his "laser-beam" focus on the issue of income tax reform and added, "You are one persistent chief executive."