COLUMBIA -- Republicans introduced a raft of priorities Thursday, with the abolition of property taxes as the centerpiece, a position at odds with state business leaders, who fear that it's election-year politicking that could cost residents good jobs and hit them hard with sales tax increases.

The GOP state House leaders' priorities also include providing more early-education help for at-risk children, they announced Thursday.

The announcement means the Republican-majority House is likely to pass some measures in each of the priority areas, which they believe are what matter most to voters.

In the last week, South Carolina Chamber of Commerce officials have voiced concerns about the House plan to lower property taxes for residential homeowners by increasing sales taxes.

Advertisement

Companies already pay some of the nation's highest property taxes, they believe, and the House plan would move the state to a more volatile funding mechanism that could threaten the state's economic competitiveness.

Emerson Gower Jr., vice president of Progress Energy and chairman of the chamber, said Thursday that businesses fear the impact of a raised sales tax, and what will happen if the property tax burden is shifted from homes to businesses.

"Business drives economic development," he said. "It drives per capita income. It drives so many things for the state. We want to make sure what we do gets the right results. We need to be careful we don't have some unintended consequences."

Mack Whittle, president and chief executive officer of The South Financial Group Inc., parent company of Carolina First Bank, and past chairman of the chamber, said last week that an independent commission should be formed to examine the long-term impact of tax relief.

Until then, he said, the state should target tax relief to those who need it most.

He warned lawmakers against doing anything "emotionally" with property tax reform this year.

Rep. Lewis Vaughn, a Greer Republican and a longtime proponent of property tax reform, said he thinks any fears by business leaders are unnecessary.

"I think it's one of those chicken-little things, as far as I'm concerned," he said. "We're not going to hurt business."

Other points of the House GOP platform are likely to please business leaders. Most mirror ideas previously announced by Gov. Mark Sanford, who also appeared at Thursday's news conference. Many are similar to what the chamber has proposed.

The Republican House members want to create more jobs by granting the Department of Commerce more funding and expanding the state's ports; reform the state's workers' compensation laws and limit government spending.

"Job creation is one of the state's biggest challenges," said Rep. Bill Herbkersman, a Bluffton Republican and developer. "We will give the Commerce Department and anyone else the tools they need to create jobs."

The state ranked 48th during late last year in its job growth rate, according to a Federal Deposit Insurance Corp. study released this week. The state's unemployment rate in November ranked third highest in the country, while it's per-capita income figure is among the nation's lowest.

The governor has proposed increased funding for the Commerce Department, the state's chief industry recruiter, by $11.5 million, and other measures to make the state more competitive.

Herbkersman said House GOP members would support increased funding for Commerce.

"I think we also need to set goals," he said. "It's a matter of getting our return on investment there."

Legislation to reform the state's workers' compensation system was filed Thursday in the House. The bill would change the review process, make prosecutions easier of those who defraud the system, and prohibit employees from collecting for injuries caused by the influence of alcohol or illegal drugs, among other reforms.

"This bill reconfigures a system long overdue for reform," said Rep. Harry Cato, a Travelers Rest Republican and chairman of the House Labor, Commerce and Industry Committee. "Protecting our small businesses and manufacturing industries through improvements to the workers' compensation system is vital for South Carolina."

Rep. Garry Smith, a Simpsonville Republican, said another key issue for Republicans will be capping state spending.

"The problem is not too much revenue," he said. "The problem is that state agencies want to spend every available dollar."

Two House bills are pending. One would extend a previous spending limitation through 2011, while the other would limit spending increases to the smaller of 6 percent or the growth in population plus inflation.

House Speaker Bobby Harrell said lawmakers should expand access to preschool education, especially for at-risk children. Lawmakers are debating how to respond to a ruling by Judge Thomas Cooper Jr. last month that found the state had failed to provide the opportunity for a minimally adequate education to children in eight poor school districts because of the lack of early-education resources.