COLUMBIA - For the second year in a row, the S.C. Senate is balking at approving Gov. Mark Sanford's plan to roll back the state income tax for everyone. Although Sanford's plan has passed the House, all but 10 of the 46 senators have signed on as co-sponsors of a much more limited tax cut.

A Senate Finance subcommittee is scheduled to take up the two measures this afternoon.

Sen. Wes Hayes, R-Rock Hill, the subcommittee co-chairman, said the panel might not reach a vote today on which bill to send forward. "We have a number of people who we want to hear from, so it may take us more than one meeting," he said.

Ever since his election campaign in 2002, Sanford, a Republican serving his first term, has promoted the idea of cutting the top state income tax rate from its current 7 percent to under 5 percent. Traveling the state last fall to build support for his agenda, the governor said a lower tax rate would encourage entrepreneurs and wealthy retirees to move to South Carolina, thus bringing jobs and capital.

"It's the number one thing we're going to be asking for; it goes to the heart of how competitive we are as a state," Sanford said in a speech at Orangeburg in November.

The House gave him what he asked for, approving by a 73-39 vote a plan to cut the top income tax rate to 4.75 percent over 10 years.

Although anyone with a taxable income of at least $12,650 would see some savings, the biggest benefits would go to higher-income people. A family of four earning $40,000 a year would keep an extra $9.60 a week. A family of four with an annual income of $100,000 would see a savings of $38 a week.

The state Board of Economic Advisors says Sanford's plan would reduce state revenues by nearly $1 billion by 2015, when it would be fully phased in. The cut would only come in years when total state tax revenues grow by more than 2 percent.

Democratic lawmakers, who are a minority in both the House and Senate, criticize the governor's plan as diverting money that should be spent on education, health care and state employees. Seventeen Democratic senators have joined 19 Republicans in backing an alternative bill by Senate Finance Committee Chairman Hugh Leatherman, R-Florence.

Leatherman's bill would affect only small-business owners who are required to file their taxes in certain categories, such as sole proprietorships, some limited liability partnerships and some types of smaller corporations. The bill would give them a maximum income tax rate of 5 percent, compared with the 7 percent they now pay.

Corporations already pay a top rate of 5 percent. The cut would be phased in over four years and cost the state about $100 million -- one-tenth of the governor's plan. Sanford has said one goal of his plan is to even out the tax inequity between small and large businesses.

Hayes said Tuesday that before he makes up his mind on which bill to support, he wants to hear from state revenue officials and economic experts.

"I just want to make sure that a lot of what's going around is based on fact as opposed to just people's feelings," he said.

How Each Plan Would Work

Gov. Sanford's plan: Anyone who earns a taxable income of at least $12,650, including individuals and small businesses.

Sen. Leatherman's plan: Businesses registered as "S" corporations, sole proprietors and some limited liability companies.

WHAT WOULD EACH DO?

Gov. Sanford's plan: Lower income taxes over 10 years, down to 4.75 percent from the current 7 percent.